Blockchain Technology Requires Significant Investment
Blockchain has been a buzzword lately, especially since it is the technology on which Bitcoin is based. Its applications, however, go far beyond currency exchanges and banking. Blockchain can be used by organizations in many other industries, such as insurance, healthcare, supply chain, real estate, media and entertainment as well as law enforcement and other government sectors. The technology might even prevent voter fraud in the future.
Despite the buzz, adoption of blockchain technology will be slow initially. Especially the cost of integration with legacy systems is a significant roadblock which can currently only be overcome by large organizations. There is necessary development of software on one hand, and the purchase of new hardware on the other. Especially for blockchain software development, demand is high and supply limited, which drives up costs. In addition to set up costs, there will also be ongoing expenses for powering the computers that process blockchain transactions.
The security advantages of blockchain technology will ensure that these investments are made, since they will save organizations money long term and prevent malicious attacks against any kind of crucial operations. Consumers will also be empowered because their transactions are safer and faster. For example, financial transactions between banks will then take minutes instead of days.