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Key Points
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blockchain-power-of-use-cases-report-2023-agile-dynamics.pdf file
Key Concepts
verified.me SecureKey design
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So far, that hasn’t happened.
blockchain challenges
- the complexity of the technology,
- the time required to get a blockchain into operation
- the difficulties in enlisting participants.
- participants may not have the right infrastructure ( BAAS then ? )
Success, however, may come with
- smaller projects: ones involving fewer participants,
- with clear returns on investment
- and that don’t try to transform an entire sector all at once, experts say.
Walmart said it took time to get buy-in from suppliers who found the onboarding process daunting. Many didn’t have digital record-keeping systems and had to make large upfront investments before they could start using blockchain, Walmart said.
problems with blockchain technology
a blockchain is a network of nodes. Nodes are devices connected to that blockchain using the software. Nodes validate every transaction or exchange of data that occurs within the blockchain. Furthermore, most public blockchains allow anyone to create and operate a node, making blockchain a decentralized and transparent system.
security - blockchains are only as secure as their weakest link. For example, if someone wanted access to data shared within an exclusive blockchain, they only need access to one node in it. ( see security layers, mutual TLS, encryption, cold wallets, enclaves, SSI )
identity and consensus - They use different methods of voting to reach a consensus. In this case, each node that has an identity gets a vote. Majority wins! There are issues with proof of identity consensus algorithms, such as minorities being sidelined or manipulating smaller blockchain networks ( see other consensus governance models )
proof of stake - This one concerns the stakeholders in a blockchain. The weight of your vote is directly proportional to the stake you hold in a blockchain. That means if you own a majority of the assets in a blockchain, you rule! ( see governance rules )
transparency - on a public blockchain - if a supply chain becomes transparent, so will the data of all the customers and partners dealing with that business. ( see Polygon Nightfall for Ethereum private transactions )
scalability - redundancy of blockchains makes them hard to scale
regulations - Decentralization of authority means there's no one power to enforce law and order in the network. No moderators, no leaders, not even a regulatory body in systems that run in multiple jurisdictions
transaction speed - finalization time - Due to the decentralized nature of blockchain, each transaction must be verified by the nodes before it's accepted as a block. In centralized systems, trust is put in a central governing body (government or bank), which allows them to process millions of transactions per day.
energy consumption - for Bitcoin only
9 Reasons Blockchain Projects Fail (And How to Succeed)
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Lack of Vision and Understanding of the Purpose of Blockchain < Stick to where transparency and accountability is wanted and needed: Critical, regulated supply chains with governance, risk and compliance requirements < BOA - Blockchain Opportunity Assessment
Building a Consortium - stakeholder alignment involved in blockchain are hard work, particularly if not all stakeholders are aligned with your mission or members will come and go < define economic value for all roles, organization sizes < BOA - Blockchain Opportunity Assessment
Fear of Choosing the Wrong Technology - use technologies that hedge against lock-in to future obsolescence and allow for quick pivots. < Firefly or ? < BOA & POC
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