Blockchain continues to be in nascent stage, notwithstanding the hype around it. Whether this knee jerk approach so to say, is either for reasons of Blockchain being a bad idea or because the implementation challenges are to be overcome ? The opinion is tilted towards the latter. It’s time innovators view these as important problems to solve creatively. Over to internet of value.
The most known manifestation of Blockchain is Bitcoin. More known for its spikes & falls, the legality & illegality, it is still a unknown commodity. As it stands the world over; its infrastructure is just unevenly distributed, the system lacks the transactional capacity to onboard millions, it’s inaccessibility to the average person & long term illiquidity concerns, 21 million by 2040. The other showstoppers are; high latency in processing & settling transactions, behavioural change & societal change and most importantly, the lack of legal recourse. This is a world of irrevocable transactions & unvoidable smart contracts. In the analog world, it is estimated that 80% of the contract breaches aren’t enforcement, the fate of smart contracts, nobody knows.
The technology is futuristic, the showstoppers seemingly unsormountable. The energy consumed is unsustainable. Govts the world over will have issues to the new territory of freedom, peer to peer. Satoshi, the founder wrote, ”You will not find a solution to political problems in cryptography.” The powerful incumbents of the old paradigm will try to usurp it. The first generation of internet was expropriated by the huge IT corporations, having complete sway on the world. This should not happen again. Today’s the incentives are inadequate for distributed mass collaboration.
The other challenge is that Blockchain is a job killer. Besides, how to get the Blockchain Protocols in place. Governing the protocols is like herding the cats. Undeniably, there would be lots of attempts to control, surveil & break Privacy. Criminals, the first adopters give it a bad name.
LOTS TO SURMOUNT BEFORE OPERATIONALISING BLOCKCHAIN GOVERNANCE.