Blockchain technology is in its early stage and as such we should expect the hype, lies and con games from a lot of people who are in it for the money and not for the long term benefits, and also projects with good use-cases yet poor management, or lack of funds to deliver based on their timeline, objectives etc.
I would say that blockchain technology is meant for the African continent where there is a need for a trustless system, a continent ravaged by corrupt leaders and systems. Where there is little or no data system to track the activities of the government, private sectors, health etc. where one has to pay extra for almost everything that has a fixed price. As good as the Distributed ledger technology is, it is yet to be adopted in Africa.
Most Heads of states know a little or nothing about its benefits, rather classified it as a Ponzi scheme that must be avoided by all means, and this attitude has hindered the private sectors from venturing into this technology in full swing fearing to be the target of regulators. Though things are changing as a lot of industries leaders in Africa and around the world are observing the benefits, ease and progress of blockchain from the Asian regions. This has spurred many into researching to know more on how to interface the Distributed ledger technology into their systems and processes.
Blockchain adoption is hindered by a lot of factors; from not working on use-cases, solutions, misconceptions, regulations, interoperability, etc. There are just too many similar projects out there with few of them with a marketing budget to drive the adoption of their projects. Some factors hindering Blockchain Adoption are:
It’s ironic that technology with a trustless system happens to be hindered due to lack of trust from the mainstream. This has been as a result of several failures, scams and hacks that have been suffered by crypto Exchanges. In 2017 there were a lot of scam projects exiting the scene after raising funds from ICOs and from VCs, this drags to the muds the integrity of Blockchain technology. It’s good to note that the first interaction of Blockchain was via cryptocurrencies which were bitcoin (BTC) and other cryptocurrencies, so when most of these projects failed it resulted to a pullback and raised a lot of questions. It’s good to note that the blockchain trust gap is a lack of understanding. Many are trapped in the hype and scam of ICOs and failed projects with little or no understanding of how the technology is transforming businesses.
This can be overcome through educating industry leaders and the masses, as many are filled with the ills of blockchain from various media.
Many have been discouraged to venture into blockchain as it is expensive to build a blockchain infrastructure. It is also expensive to build an ecosystem of industries as many are more concern in building their own, this is the reason we have a lot of similar projects in the space with great potential but lack the interoperability to interface with other similar projects.
Unsure of How to Start.
A lot of industry leaders do not know how to start, and with the many “so called blockchain experts” in the field has confused many instead of helping in solving the problem. Also, some would just want to integrate with existing infrastructure but don’t know which to partner or interface with due to the numerous similar projects out there.
Blockchain adoption has been hindered in several regions by regulators who know nothing about the technology or sees it as a threat, some countries in Africa and in India have had regulators opening declaring that blockchain and cryptocurrencies as scam, not knowing the difference between the blockchain technology and a derivative. A few months ago, I had a meeting with a client in Africa who wanted to integrate DLT, but was troubled about not been sure of the regulatory framework of his country concerning Microfinance banks. They wanted a process via which their ledger would be immutable, so as to be able to track some loops holes in their company, and also change the traditional auditing of their account. Most Regulators do not understand the technology, so instead of having a framework that would ease blockchain adoption they stiffen the process. Many also think it’s an avenue to generate more funds for the Governments they impose heavy fine, and since most of the Regulator are confused, they keep changing the rules.
Lack of Interoperability.
This has done more harm to the adoption of blockchain. As there are many blockchain solutions out there but they lack interoperability which has led to poor adoption. Interoperability will help in building industries ecosystems and reduced cost of blockchain technology. It’s good to note companies like r3 Consortium, IBM and other major key players that are helping in building enterprise solutions with seamless interoperability, making it easier for industries to interface.
Little or No Marketing Budget.
It amazes me how many blockchain project would want to drive the Adoption of their project with no marketing budget. As with every new technology there is a need for marketing, public relations etc which helps to create an awareness of the existence of such projects. As I mentioned earlier, the space is crowded with too many similar projects which has left industry leaders, the masses and government confused. While some with marketing budget engage without a good strategy, as such they are unable to reach their target audience.
Just as there are factors hindering the adoption of Blockchain technology, there are also factors and strategy which could be deployed to speed up the adoption of this technology by the mainstream check my previous post for some tips.
How we make the difference.
Keruxmagnum is an African blockchain development and consulting firm headquartered in Lagos, Nigeria with a distributed team across Africa that is focused on Blockchain Adoption, Campaigns, Education, development, Public Relations, Research, Grassroots Mobilization and building a localized presence for blockchain companies or projects.
We speed up your team’s progress on the field creating opportunity for your project and help you create strategies you can use in your business development in any of part of Africa.
At Keruxmagnum, we help you save the money bags through strategic deployment by our crew/ your team whilst helping you drive the adoption of your project in any African countries.
Cryptocurrency & Blockchain
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.