Deloitte Outlines Five Major Obstacles to Blockchain’s Mainstream Adoption

Deloitte has outlined five major areas where blockchain needs to develop to achieve widespread adoption.

“Big Four” audit and consulting firm Deloitte has outlined five basic areas of development for blockchain technology in order achieve widespread adoption, according to a study published September 28.

According to Deloitte, in order to be adopted by enterprises on a mass scale, blockchain technology should overcome five major obstacles – the possibility of time-consuming operations, lack of standardization, high costs and complexity blockchain applications, regulatory uncertainty, as well as the absence of collaboration between blockchain-related firms.

Identifying the area that needs the most development, Deloitte singled out the problem of possible operational delays on a distributed ledger network. The company emphasized that slow transaction speed is one of the main reasons for many players to avoid considering blockchain as a technology that can be applied in “large-scale applications.”

Another major obstacle for blockchain on the path to widespread adoption is lack of standardization. Deloitte pointed out that the lack of standardization prevents technology disruptors from interact with each other. The consulting giant cites the fact that there are over 6,500 active blockchain projects on GitHub, with most of them based on different protocols, consensuses, privacy measures, as well as written in different coding languages.

Among the remaining areas for development, Deloitte listed the necessity to reduce both costs and complexity of network operations, the importance of innovation-supporting regulation, as well as the crucial role of collaboration between blockchain-related firms.

In terms of costs and complexity of the emerging technology, Deloitte referred to major technology giants such as Amazon, IBM, and Microsoft that have reportedly delivered less complicated implementations of blockchain by using cloud technology, as well as contributed to improving the costs of operations on blockchain.

Among the most complex issues around blockchain regulation, the company highlighted the difficulty of regulating smart contracts, which do not necessarily fit into existing frameworks.

The report’s final point stresses the importance of cooperation between blockchain-related firms in order to push forward the new deployments of the technology, as well as to provide better education in the sphere. The company says the increasing number of blockchain consortia, such as R3, is a “bullish sign,” because the “value of a blockchain network increases with the number of users.”

Last month, Cointelegraph published an interview with Jeremy Gardner, founder of Blockchain Education Network and co-founder of blockchain prediction platform Augur. In the interview, the industry expert claimed that in order to achieve mass adoption, those developing in the industry must “include the people who have the most benefit” from blockchain technology – namely the world’s disenfranchised – commenting that “we haven’t done a great job doing that, yet.”

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‘Global Blockchain Leader’ At Deloitte Resigns To Join Blockchain-Based Startup

A partner at Deloitte, who helped it build a $50 mln global blockchain practice, has left the company to develop his own project aimed putting supply chain networks on a blockchain.

Eric Piscini, former Global Blockchain Leader and Partner at one of the “Big Four” consulting firms, Deloitte, has left the company, Forbes reports May 14. Piscini, who helped build a $50 mln global blockchain practice, is joining the startup Citizens Reserve to move supply chain networks to a blockchain.

The early-stage startup, which is currently raising $300 mln, is a shared database designed to operate on all levels of a supply chain. Within the project, a new digital currency ZERV has been developed using the ERC20 token. The cryptocurrency will reportedly be used by consortium members to access the blockchain, allowing them to implement “nearly instant borderless transactions.”

The platform is based on the public Ethereum blockchain with smart contracts consisting of self-executing code, which could be implemented using various private blockchain solutions. Though the agreements would be limited by a long period of time to close cross-border transactions and foreign exchange rate considerations, with a cryptocurrency transactions can be reportedly conducted in near real time. Piscini said:

“We are building the Ethereum of supply chain… The private blockchain is more for supply chain transactions, and the public blockchain is used for payments. There is a bridge that we created that is kind of our secret sauce.”

ZERV is also considered a utility token as it allows users to exchange goods and services within the platform. The digital currency contains a third component which sets it apart from other ERC20 tokens; it is backed up by assets. The reserve assets are designed to grant the token “a guaranteed value” of $0.01. There will reportedly be 100 bln tokens issued to the value of $1 bln.

According to Forbes, 85% of the funds attracted in the token presale will be used to purchase assets that will back the tokens. 30% of the total funds raised after the round is closed will be distributed to users through a mechanism designed to motivate the creation of the new supply chain services on the platform.

The expected launch of Citizens Reserve falls in July 2018. Piscini declined to reveal the names of potential consortium members, saying that Citizens Reserve is working with three organizations that are currently providing software to the defense industry supply chain in a centralized manner.

Piscini’s decision comes amid a migration of top executives from traditional tech and financial companies to blockchain and crypto. In December, David Marcus left PayPal and Facebook to be appointed to Coinbase board of directors. Brian Armstrong said Marcus’ “knowledge of both the payments and mobile space” was what would help “guide” Coinbase going forward.

Earlier today, the CFO of Australia’s Commonwealth Bank left to join Block.one, the developer of EOS.IS blockchain software, which launched an initial coin offering (ICO) for EOS tokens in June 2017.

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