The basic concept of Bitcoin and blockchains was to create a new payment system that was free of any connection to a centralized bank or other regulatory bodies.
Since then, the industry has gone through some major changes and blockchains have become much bigger and influential than anyone could have hoped for back in 2009. Besides that they can be used for payments and be traded with brokers and on exchanges, blockchain has many usages in a range of industries.
However, the rise of blockchain technology has also created some issues for businesses looking to start using blockchain, so let’s take a look at that as well as some of the potential solutions.
Using Blockchain for Payments
One of the main reasons businesses of today are looking into blockchain solutions is to streamline their payment systems. The problem is finding a link between blockchain, banks, and other financial institutes.
Many businesses and customers are still wary of using cryptocurrencies and blockchains, and it won’t be easy to convince them to switch from using familiar regular payment systems to new blockchain technology.
This means that companies looking to start using blockchains for payments might not be able to do so because customers refuse.
So far, XRP and the Ripple network have been the most promising solutions to this issue, and they have already partnered with several banks and major financial institutes. Their goal is to find a solution that will act as a bridge between blockchain and cryptocurrency payments and the banking systems.
Using Blockchains in the Business
As you probably know, blockchains can be used for a lot more than only payments and many companies – including major corporations like Microsoft and IBM – are trying to incorporate this new technology into their businesses.
Although, for many, it’s proven easier said than done. Concerns such as a lack of skilled workers with knowledge of the industry, the high volatility of the cryptocurrency market, and frequent security breaches are worrying business owners and investors which is stalling the development.
The only real solution to this issue is time, and as our society gets more accustomed to using blockchains, safety and knowledgeable workers will follow. However, until then, there isn’t much we can do but wait and try to drive the development forward on our own.
We are currently experiencing a massive change in the way we interact with each other, both on an industrial level but also in terms of money and financial transactions.
But as with most innovative developments, things are moving quite slowly, and although we see regular progress, it will most likely take a few years before blockchain technology has become a normalized fixture in our society.