5 blockchain adoption challenges and how to avoid them



 Blockchain technology is overshadowed by a lot of hype and makes many business leaders attracted by the idea of implementing it, but they are also worried about potential risks and challenges associated with blockchain.

In its simplest form, blockchain is a peer-to-peer blockchain technology that can keep track of exchanges between parties in a timely and in, reliable, and permanent manner, allowing monitoring and traceability. This new blockchain software development services is gaining revolutionary potential for numerous applications which go beyond the cryptocurrency context.


For instance:

  • Pharmaceutical companies have created blockchain applications to protect the supply chain of medicines as well as sensitive test results.
  • In partnership together with IBM, Walmart developed a blockchain-based system that cuts the time to trace a product down from one day to seven days to 2.2 seconds.
  • In April 2021 in 2021, in April 2021, the Ethiopian Ministry of Education announced the signing of a contract with the blockchain-based developer IOHK to develop digital IDs based on blockchain that will be used by five million pupils.

Alongside the advantages that some early adopter businesses are reaping from blockchain developer companies, more people are becoming aware that the tech is increasing quickly. The organization I work for, APQC, found that 66% of companies were aware of blockchain technology in the year 2019; within a year, the number had increased to 80 percent however that the majority of companies have not yet reached the initial stages of embracing blockchain (see Figure 1.).


Why is it that less than 12% of the participants say they are working with blockchain or using it as an application? What's stopping the other 34% of participants who have not even considered the possibilities of blockchain?

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The lack of adoption

Blockchains are a type of ecosystem that requires broad adoption in order to be effective. For example, tracking and tracing capabilities in supply chains will not just require an organization to join a best blockchain companies network but for suppliers to do it too. However, APQC has discovered that just 29% of businesses have a blockchain pilot program or have fully implemented it. If blockchain technology is not widely adopted, the efficiency and scalability of blockchains will remain in a limited state.


There are plenty of reasons to be hopeful that the adoption of blockchain technology will continue to grow. Businesses are increasingly joining forces and creating working groups on blockchain that are collaborative to tackle common problems and create solutions that can be beneficial to everyone without divulging private information.


Skills gap

Blockchain is in the midst of rapid development in technology, and the expertise required to create and utilize it is limited. Figure 2 illustrates that 49% of participants in the research declare that the lack of skills is a major issue. The market for blockchain-related skills is extremely competitive and has been for a while. Blockchain Council reports that demand for  top blockchain gaming companies engineers increased in the year 2019 by over 500 percent over the prior year, and the base salary for blockchain developers increased in the form of. The high cost and the difficulty of acquiring talent in this field are only adding to the fears that businesses face in implementing blockchain technology and its integration with existing systems.


We've seen this model reduce the gap between skills with respect to other technologies, like automated robotic processes (RPA). Instead of developing bots or writing code in-house, businesses can today turn to a variety of suppliers who are able to set up RPA and adapt it to the specific needs of each company. Users need only to understand the fundamentals of RPA and don't have to be programmer-level to benefit from its advantages. Similarly to that, users will need to be able to comprehend how to use the smart contract (which utilizes blockchain technology to automate certain actions when the conditions stipulated in the agreement are satisfied). However, they will not require any special knowledge regarding the complexities of blockchains with distributed ledgers. BaaS could reduce the blockchain-related skills hurdle.


Trust is a key element among users.



Insufficient faith among users could be the fourth biggest issue that prevents widespread implementation. The problem is split in two ways: blockchain software development services may need to be more confident in their security with the tech, as well as not trust the other users that are part of a blockchain.

Each transaction that is made on the blockchain is believed to be safe, secure, and authenticated. This is even though there isn't a central authority to validate and confirm the transactions, as the blockchain needs to be centralized. The most important aspect of any blockchain system includes the algorithm for consensus, which drive an agreement on the current status of the ledger distributed used by the whole network. It makes sure that each block that is added to the blockchain is the only true and sole version that has been agreed on by all nodes of the blockchain. Business leaders have discovered greater confidence in privately-owned blockchains that have no unidentified users.


Financial resources

The fourth obstacle to the wide adoption of blockchain, according to participants in the APQC's research, is the need for more funds. blockchain developer companies implementation isn't free, and for many businesses, the disruption and pandemic of 2020 have left budgets in a state of crisis. But, another benefit of this pandemic was that companies and IT departments, in particular, can adapt faster than thought was possible.

A deeper analysis of this issue reveals that it's rooted in need for more understanding and awareness of the organization of blockchain. We've observed that as knowledge of emerging technologies becomes greater, the ability to create an argument for their use increases as well effectively. This is the case with blockchain, too, in the event that blockchain advocates concentrate on creating the business case to show how blockchain's benefits this technology will outweigh the cost needed to implement it.


Blockchain interoperability

As more companies begin to adopt blockchain technology, there is an increasing tendency for various organizations to create their own blockchain systems that differ in their aspects (governance rules as well as versions of best blockchain companies technology consensus models, etc.). The different blockchains don't operate in a coordinated manner, as there is no standard that allows different blockchain networks to connect with each other.


In a post-pandemic environment where collaboration across functions as well as with customers and suppliers is vital, the interoperability of blockchain will be crucial. The only method companies will gain the maximum value from their investments in blockchain. The positive side is that in the last few years, we've witnessed an increase in interoperability initiatives designed to connect different blockchains. A lot of them aim at connecting private networks with one another or connecting to public blockchains. These systems will ultimately be more useful to business leaders than prior approaches that focused on public blockchains and cryptocurrency-related tools.

Blockchain benefits



As well as the challenges of implementing blockchain, those in the research of APQC have identified the most significant benefits they expect to see from its use, particularly in the supply chain.

  • Greater visibility into the real-time monitoring of end-to-end product movement (78 percent of respondents)
  • Improved visibility into supply chains with multiple levels and distribution channels across the globe to decrease counterfeit products and increase the integrity of products (69 percent)
  • Increased integrity of processes and data Control and trust of sensitive information (62 percent)

Looking ahead

It's naive to assert the challenges of blockchain are minor obstacles to its widespread adoption. In general, the majority of blockchain's problems are a result of the growing difficulties which are typical with every new top blockchain gaming companies. When making a case for blockchain adoption, blockchain advocates must convince their companies to accept the types of risks, establish relationships of the kind and make the types of trade-offs that are typical in other business areas.

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