Blockchain technology has been around for quite some time now with a lot of positivity and directions, but its level of adoption is still very slow. A survey carried out by Gartner shows that the adoption level is still 1% with an expected 8% increase by CIOs in the short term. What could be holding down the remaining 99% in the level of adoption? The main reason for this delay is the misconception that blockchain is an emerging technology, so many are waiting for the full stage of development. Just as the Internet was in the 1990s, blockchain is still at its development stage, mass adoption is the vehicle that will drive it to its desired destination.
Though the adoption level has been low, blockchain still has the potential to make a positive impact on the business world. Garner forecast that blockchain can generate an annual business value of more than $3 trillion USD by 2030. Though it is the technology behind cryptocurrency, its features and functionalities have developed beyond financial instruments. The value associated with these technologies changes as blockchain provides new functionalities. According to the Garner survey, it could be estimated that this technology will support about 20% of global economic infrastructure by 2030. Some of the institutions and organizations that have caught up with this vision are pushing for adoption and getting more involved with the blockchain technology. One of the companies in the business world that have pushed further than others is Samsung.
Samsung Electronics just released a new edition of its Galaxy Note 10 smartphone, installed with a cryptocurrency wallet to support blockchain adoption. This product is a different version of Samsung’s top product Galaxy Note 10 but marketed as “KlaytnPhone” produced from Samsung partnership with the Kakao-developed Klaytn public DLT. It does not differ from the Galaxy Note 10, but comes with blockchain apps and a cryptocurrency vault. Owners of this smartphone will also own wallets pre-loaded with crypto tokens or an amount of Klay token.
The KlaytnPhone began sales on September 5 in South Korea which is the headquarters of Samsung. The blockchain apps of the Klaytn network can be accessible by non-Samsung phone users via Google’s Android system. But only the Klaytn edition will enable full transaction on the Klaytn network which has been live since the middle of the year. Its token started trading on exchanges like Upbit’s platform in Singapore and Indonesia.
This is not the first step the telecom heavyweight has taken to promote blockchain adoption, it had earlier improved the crypto functionality of it’s Galaxy S10’s by adding digital wallets that support assets like BTC and 32 other tokens, these include some stablecoins like USD Coin (USDC), Maker (MKR), TrueUSD (TUSD) and BNB. Before this addition, the Galaxy S10 was able to support only Ether and ERC-20 tokens on Ethereum.
If other nations, institutions, and organizations of the world would follow suit, it is possible that blockchain could reach its full adoption potential.
How Can The Blockchain Rate Of Adoption Increase?
So many nations of the world have applied the same approach to blockchain and cryptocurrency since it is the technology behind the digital assets. They see cryptocurrency as a scam, this thought hinders them from seeing the full benefits that could be derived in full adoption of the blockchain technology. Its functions go beyond supporting cryptocurrency, this is proven in the design of the Ethereum blockchain protocol which offers better functionality than the Bitcoin blockchain.
However, to utilize the fullness of these functionalities, the following challenges need to be addressed.
Regulation is important in establishing blockchain technology because it helps to build trust. Some unhealthy activities are going on in the blockchain industry, which makes it difficult for people to trust blockchain startups, an example of such is the fraudulent ICO companies. Regulation will bring more adoption if the blockchain industry has a harmonized standard that will enable easy accessibility. Though blockchain technology operates on the principle which supports freedom and autonomy, regulation will promote more awareness and development of the structure in major nations of the world.
Many nations are hitting hard on cryptocurrency with bans and strict rules, this affects the development of blockchain-based projects. China, France, India, and the UK are among the nations that have introduced strict crypto regulations, while the US has achieved more progress with about 17 states passing bills related to blockchain adoption. According to the study by Finder, the number of Americans who owned cryptocurrency doubled this year. The report shows that 36.5 million Americans own crypto representing 14.4%, compared to 7.95% in 2018.
Too Much Emphasis On How Blockchain Works
There is too much visibility of the functions of blockchain technology that is generating confusion for the consumers. People don’t need to understand how blockchain works before they can use it, just like the computer. Internet users do not need to understand how it works to use it, so it is for blockchain users, the more silent the changes they have to make, the more they will adopt the technology. Consumers do not need to know what powers blockchain to use it, instead, their focus should be more on what they can achieve with it, and this approach will boost growth in adopting blockchain technology.
The great functionality of blockchain technology has attracted the nations of the world, the government, and organizations that are continuously competing for technological advancement. Different nations and their governments are either studying various blockchain-based applications, or testing such applications for use in improving state affairs.
Scalability and Ease Of Use
Currently, blockchain transaction speeds are noted to be slow. The Ethereum blockchain can only handle 15 transactions per second, while Bitcoin can handle just 7 transactions per second. The process of consummating these transactions involves some complicated steps before completion. The processes are very complicated for average users compared to the other alternative cross-border payment platforms. It is important to implement easy-to-use decentralized applications that use blockchain and enable a better user interface.
Developers and programmers interested in the creation of blockchain-based applications are barred from entry. The easy web application will increase performance and allow people to easily use and develop blockchain applications.
If all these bottlenecks could be addressed, adoption of blockchain technology will become a frictionless experience both for private organizations and public institutions. Blockchain is making a great impact on financial industries and other key sectors such as healthcare, FCMG, supply chains, the fashion industry, media, and more, but the telecom industry seems to be at the forefront of adoption.
Samsung Electronics’ move for adoption with its flagship product will make a great impact because the reach will go beyond Samsung to the wider Google ecosystem. Samsung has a large global retail network, and this single move can generate a tremendous result. Based on the level of competition, it is expected that some other large organizations will follow suit.
Blockchain offers cost reduction, accuracy, and traceability for business processes. According to PwC’s survey in 2018, in a sample of 600 executives from 15 nations, 84% affirmed their organizations are involved in blockchain technology. If these push for adoption like Samsung, there will be a considerable increase in the percentage of adoption.