A recent study conducted by CB has reported the fad of blockchain is beginning to die down. The number of startup investments involving blockchain technology has dived more than 60%. On the other hand, large companies such as IBM, Microsoft, Walmart and Samsung have begun to deploy their private blockchain tech or decided to join other partnerships. Even some big banks like HSBC have developed their private types of blockchain arms.
Adopting Blockchain Slowly
Politicians and governments have been called out for not being able to fully understand the tech. Many ignored the boom of crypto when it first appeared. Once they paid attention, they started regulating, opposing and shutting down many of the blockchain projects they got their hands on in the industry. However, as time went on, they started to understand its potential and began adopting the tech slowly.
Private vs. Public
It is important to note the critical differences between public and private blockchain enterprises. According to cointelegraph, unlike public blockchains like Ethereum and Bitcoin, private blockchains are not open to just anyone. Each node in the blockchain is selected specifically by the organization. Because of this, trust can be established easier and there is less risk of corruption to the chain.
Private blockchains can be scaled easier and transactions completed faster because of fewer nodes being involved. There is no need for rewards because the motivation is different than public blockchains. Public chains, however, are favorable in their unique ways. You can connect with people without having to give or get any information about them beyond the transaction amounts.
Blockchain’s Real Use
There are some real benefits of using blockchain tech, even for enterprises. The first benefit revolves around commercial factors. Enterprises can set up strict guideline nodes for allowing people to join the network. When many competitors have to work together in a trustless environment, blockchain is a great option for transactions to be completed. No party is given more power than another.
There are also concerns about safety. Blockchain technology comes with built-in encryption, redundancy, synchronization and tamper-resistant features. Because of its data interactions, collaboration and openness between many parties, blockchain offers a great method of preserving data and is reliable and secure.
It seems to be clear that blockchain will not be replacing central authorities any time soon. Instead, the trend seems to be leaning towards a government-regulated, semi-centralized version that will keep its rate of survival high.
