Blockchain faces several challenges that must be addressed before large-scale enterprise adoption. These include a lack of standardization between platforms, scalability issues as more users join networks, the large amounts of energy required to power the networks, security vulnerabilities if over 50% of nodes are controlled by one group, and the high costs of implementing blockchain at a large scale. Addressing these open challenges is necessary for blockchain to fulfill its potential beyond finance and be adopted by other industries.

1. 5
BLOCKCHAIN
CHALLENGES TO BE SOLVED
BEFORE LARGE-SCALE
ENTERPRISE ADOPTION

2. Blockchain is perhaps one of the biggest buzzwords in both finance and technology today.
Proponents tout it as the technology that will revolutionize the financial services, pointing
to its ability to function without a central authority and also
store data in a tamper-proof way.
But they also believe it will be beneficial to a variety of industries beyond finance and tech,
particularly ones beset by a huge trail of paper records and outdated
legacy technology — whether that’s healthcare, real estate or law.

3. Lack of standardization
With so many platforms present in the Blockchain space, there is currently
no standard that allows them to interact with each other.There are
thousands of active Blockchain projects today running on different
platforms. Each of these platforms has its own coding language, set of
protocols and consensus mechanism. It is difficult for the platforms to
interact with each other without a translator.

4. Scalability
One of the key challenges in Blockchain implementation is its inability to
scale. Networks like Bitcoin and Ethereum experience a slowing down of
transactions and a consequent increase in the transaction fee as more users
join the network.Blockchain networks are slow. While Bitcoin Blockchain
can process around 3 to 7 transactions per second, the corresponding figure
for Ethereum Blockchain is not more than 15-20 transactions. This makes
Blockchain unviable for large-scale applications.

5. Energy
Blockchain networks, be it Bitcoin or Ethereum, use Proof of Work
mechanisms to validate transactions and add them to the network.In a
Blockchain, miners (who work to validate transactions) pick up a block of
transactions and try to generate the right hash output for the block. This
process relies on complex cryptography and solving of complex
mathematical problems. As a result, a lot of electricity is needed to fuel the
computers involved.

6. Security
All the public Blockchains are vulnerable to 51% attack.All the transactions
happening on the Blockchain have to be validated by the majority of miners
present in the network. If any miner or group of miners gains control of 51%
of the nodes on the network, they can prevent other miners from creating
new blocks and hinder the validation of new transactions. They can even
reverse the transactions confirmed by them.

7. Cost
Any Blockchain network needs computers with a high degree of
computational power. So, Blockchain technology does not come cheap.
Large-scale implementation of Blockchain will involve its integration with
legacy systems which is expensive. This will discourage corporations and
governments from adopting Blockchain.

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