Blockchain technology, despite its hype, may not be the revolution it’s touted to be. Industry insiders argue that the technology is far from a panacea for all business issues, with its application often unnecessary and overly complex. While it offers decentralisation and transparency, these benefits are not always needed or beneficial. In many cases, traditional databases can provide the same services more efficiently.
The technology’s limitations include slow transaction times, high energy consumption, and the potential for fraud. It’s also noted that the technology is often misunderstood, with many conflating it with cryptocurrencies. The misconception has led to many businesses adopting blockchain without fully understanding its implications or functionality.
Furthermore, the technology’s decentralised nature can be a double-edged sword. While it can prevent single points of failure, it can also lead to issues of accountability. If something goes wrong, it can be difficult to determine who is responsible.
Lastly, blockchain’s promise of disintermediation, or the removal of middlemen, is not always beneficial. Middlemen often provide valuable services, such as conflict resolution, that a blockchain cannot. In conclusion, while blockchain technology has potential, it is not the universal solution it is often presented as.
Go to source article: https://ftalphaville.ft.com/2018/05/02/1525253799000/Blockchain-insiders-tell-us-why-we-don-t-need-blockchain/