Barriers to Adoption

Abstract

Blockchain technology may have the potential to transform the creative economy but there are a number of barriers to adoption. As regards political barriers , politicians and policy-makers are inconsistent in their treatment of blockchain technology, especially in relation to tokens; many governments have yet to clearly articulate their positions. This is off-putting to some potential enterprise users, and hinders the development of standards. As regards economic barriers , disruptive/radical applications are likely to be resisted by incumbents, although some incumbents are certainly exploring incorporative/sustaining applications. Even disruptive/radical applications may not be as radical as some proponents claim, due to the impossibility of writing complete contracts. In terms of social barriers , the adoption of cryptocurrencies is still relatively low; widespread adoption of blockchain technology is likely to depend on accessibility to users who do not own cryptocurrencies, and who may not be aware that they are using blockchains at all. In terms of technological barriers , scalability, in particular, is a significant concern. And while blockchain technology may be groundbreaking, the ‘garbage in/garbage out’ problem remains—as does the problem of ‘breaking the chain’. As regards legal barriers , cryptocurrencies and tokens exist in a grey area; there is particular uncertainty over which tokens do, and do not, qualify as securities. Finally, there are environmental barriers , due to the energy-intensive nature of achieving proof-of-work consensus.