The future vision of the internet has been reimagined by blockchain technology. Individuals, organizations, and other internet users generate data. However, the control of this data is centralized. Only a handful of key corporate players have significant economic power and influence. This phenomenon has led to distrust in users and a loss of trust in the information they find, use, and assimilate.
Despite all the advancements, blockchain adoption and acceleration in real-world use cases are still very limited. The dApp development process can be complex. Many developers remain rooted in traditional Web2 models and tools. Let’s look at some of the limitations and problems that this space faces today.
Inadequacy of integration
Data that is important to trust can be found in legacy databases (e.g., Oracle and SAP, MS Dynamics, etc.). For enterprises, and Google Drive, One Drive Box, Dropbox, etc. for consumers or individuals. These centralized data storages and systems of record are not easily integrated into a blockchain-ready solution. This is a limitation to decentralization.
Limited developer ecosystem
Blockchain is still a relatively new field. Many developers are still learning. The ecosystems have not encouraged widespread adoption of blockchain resources. Reskilling developers from Web2 to decentralized applications is a major barrier to adoption. It also slows down execution.
Protocol management professionals
The most common legacy disciplines include knowledge such as project management and product administration. Protocol management is not a discipline, but many communities have adopted a blockchain protocol to help them rally around. There are weak structures in protocol management as a discipline.
These informal networks of professionals lack the structure, rigor, and discipline necessary to enable seamless deployment of scalable dApps across multiple protocols. Individual developers often have difficulty gaining mass support and access from multiple communities in order to develop their dApp project. This causes adoption barriers that are both scaled and fast.
Balance Sheets with cryptocurrencies
Chief financial officers of companies and their legal counsel remain cautious about owning cryptocurrency and taking on volatility risk. Blockchain companies need to simplify or alleviate this issue by bridging fiat to crypto off the company’s balance sheet until regulations are clear and crypto as a market matures with reduced volatility. This is because raw protocols require enterprises take a leap and are considered unviable.
Operational risk management
Many protocols claimed that Ethereum Virtual Machine (EVM), which was first dismissed, had been replaced by newer, more innovative technologies. As enterprises’ needs changed, they needed stability, scalability, and interoperability. Many protocols have invested in EVM compatibility (e.g. Solana, Algorand etc.). Security concerns mean that bridge deployments can be resisted by enterprises.
Join the community to transform the future. Cointelegraph Innovation Circle brings together blockchain technology leaders to collaborate, publish and connect. Apply now
These obstacles can be overcome by a variety of solutions that enterprises have many options.
Go low-code, no-code
The enterprise market has been flooded with low-code and non-code options at an extremely rapid pace. It has helped to reduce development cycles and made it possible for citizen developers be able to deploy applications quickly. Programming languages based on blockchain (e.g. solidity, rust and Haskell) These languages are not easy to learn and require a lot of talent. These are the reasons why blockchain platforms that use low-code (or none) code may be an option.
Be aware of the EVM-compatible aspects of blockchains
EVM-compatible chains, as mentioned, provide security, interoperability, and scalability for assets and capital. However, they also lower costs of acquiring developers. It can also harness Metcalfe’s law and Reed’s law, driving network effects and providing access to scale and liquidity.
Multichain is the future
Many large enterprises use multiple cloud providers. Blockchain will likely pan out similarly to classic enterprise behavior. This will allow assets to be transferred across metaverses and game, and also allows access to loans and collateral across multiple Blockchains. This could encourage wider adoption.
Pay in fiat
It may be better to insist on fiat payments for providers, platforms, and protocols until regulatory clarity is provided and the market matures enough to where enterprises can afford to pay gas fees.
Web3 will not replace Web2 in enterprises. It is not ideal to run Web3 and blockchain projects in silos. Integrating Web2 systems, such as identity, CRM, ERP and ERP, is a must when working with blockchains.To maximize adoption and make Web2 & Web3 work seamlessly together,
Conduct adequate due diligence
Make sure the protocol vendor or product passes all due diligence, including commercial, technical, and human capital. Unlicensed actors like miners or validators pose a risk to many (but not all) businesses. It is possible to use blockchains that have KYC-verified validators.
Invest in ecosystems
Decentralized platforms, developer tools, creator kits and system integrators are all part of the ecosystem that make adoption easier. These technology accelerators can help enterprises achieve the right fit and ROI from scaled public blockchains.
Companies and projects have to adjust to the changing pace of enterprises as blockchain is ready for enterprise adoption. The blockchain-only world has different operational, technical, and regulatory considerations. Projects and companies that are solely focused on blockchain may struggle to find a market for their products in the enterprise space. Web3 must collaborate with Web2 to generate exponential value. Web3 must be ready for Web2’s embrace of it.
Nitin is a growth CEO at zblocks. He is a well-respected leader, author, consultant, and VC investor.
This article was published by Cointelegraph Innovation Circle. It is a group of senior executives and experts from the blockchain technology industry. They are creating the future of the blockchain through collaboration, connections and thought leadership. Cointelegraph’s opinions do not necessarily reflect the views of its members.
Find out more about Cointelegraph Innovation Circle to see if your eligibility to join.