Since the advent of blockchain, it has been going from strength to strength in terms of technological advancements, development of new use cases, development of applications and research. New startups are flowing in every day who are tapping into new use cases and are looking to use the technology to its full potential. The only point where it still lags behind is mass adoption. There are a number of reasons why blockchain hasn’t yet seen mass adoption, which include regulatory issues, lesser use cases and applications compared to centralized options, UI and UX not being up to the mark etc. There’s still a lot to explore and startups are trying their best to advertise the technology while still exploring ways to use it to its full potential. The thing that is required is that businesses should adopt the technology for specific use cases rather than general. The technology still needs adoption from institutions and businesses, which would then automatically trigger adoption for the general public. BlockPublisher recently got in touch with Branden Perry, litigation, regulatory and government investigations attorney with Kennyhertz Perry, LLC. who explained his views on the topic saying,
Blockchain in industry, like blockchain technology itself, is in its infancy, but on the peak of rapid expansion. Businesses that see the potential and are proactive in its adoption will likely be the frontrunners in innovation and ahead of the curve when the benefits are fully realized. There is an opportunity for efficiencies in transparency and cost-cutting, and a few high-profile applications are taking hold. When the regulatory landscape evolves with the technology, more businesses will likely follow.
The biggest hurdle between blockchain and adoption as termed by Branden is regulation. According to him, until the regulatory structure becomes clear, institutions would still be hesitant to dive into blockchain. He stated,
The biggest challenge to blockchain adoption is that the regulatory treatment is unclear for many uses with blockchain and virtual currency technology. It seems as if every federal regulatory agency has chimed in on blockchain issues, but none have taken the lead. For example, The IRS has classified virtual currency as property, and the CFTC has said they are commodities. The SEC has implemented a securities structure surrounding ICOs, and no agency has labeled virtual currency as an actual currency. This is true with blockchain. Until the regulatory structure is clear, many companies will be hesitant to use the technology to innovate their business processes.
A lot of eyes are on the year 2019, which would bring a lot of regulatory clarity according to experts. But at this time it’s not easy to say whether the regulatory structure would become clear soon. The hopes may be high, but only time will tell.