Why Blockchain Remains in the Shadows
Blockchain is perhaps, one of the most beneficial digital technologies in the opening years of the Digital Age we are in. Much hyped in its early years, touted as solving so many problems from legal contracts to digital identities. Books were written, speakers made small fortunes. Now, over a decade later, blockchain still struggles to have its moment. Why?
I’ve followed the technology since it burst into the public domain around 2011. I was, and remain, fascinated with the benefits it can bring to our world. As a technology anthropologist, I work at the intersection of humans, culture and technology. I’ve been doing this since 2008.
I regularly advise businesses and governments on the benefits, risks and potential impacts of technology. As well as doing a lot of digital research (netnography) for them. Blockchain pops up a lot in my work. The insights are telling about the future of this powerful technology.
The ultimate test of whether a technology will become successful and play a significant role in our societies comes down to culture. For culture is the code humanity uses to not just survive, but thrive. And culture isn’t just the arts. It is politics, economics, military, governance and societies.
Blockchain is failing to gain cultural relevance. Why?
There are a few reasons I believe this is happening. This is based on my decades of bringing emerging and innovative technologies to market and well over a decade of helping companies and governments better understand how humans use, interact with, change from and then change, technologies.
Blockchain’s Biggest Challenges
I call them challenges because a problem solving approach will not be of any help. Problem solving is too simplistic and blockchain is a complex systems technology. This means it requires critical thinking and an understanding of complex systems for it to thrive in human societies.
Too Much Transparency: Blockchain is a radically transparent technology. Ideologically, this is wonderful. It can significantly reduce bribery, theft, financial fraud and copyright issues among others. So why not employ it for this purpose? Because human cultures and societies operate with a lot of opacity. Grey areas. We may say we want this transparency, but not so much when it affects us. I’m not saying we’re all bad people, but there is a lot of grey areas in how societies function.
Confused Public: While blockchain isn’t that complicated, most people outside of the technology world just can’t wrap their heads around it. I’ve conducted over 20 research projects for clients looking to use blockchain in their proposed solutions. In all of them, consumers and citizens had little to no understanding of the technology and quickly dismissed it. Techies, take note.
The Crypto Alliance: Blockchain is a part of crypto, but it isn’t crypto. And crypto is in a winter right now. Increasingly under pressure (rightfully) by regulators due to a seething, roiling mass of scammers and fraudsters through pyramid schemes and outright theft. It’s a heavy anchor around blockchains neck. In today’s world, perception is everything and it’s a blanket blockchain can’t seem to get out from under.
Technology Challenges: For now, blockchain struggles when it comes to scaling up in a serious, world-changing type of way. It uses a lot of energy and needs a lot of TLC. These need to resolved.
Technology Debt: For large enterprises, such as Fortune 100 companies and governments, they’re all struggling to deal with their high levels of technology debt. Some of this very much related to ageing databases that require upgrading and management first. This limits blockchain to experiments and budgets are tight for such adventures right now.
It’s Not Shiny Anymore: For technology pundits, blockchain is so yesterday. It’s had its hype day. A.I. is in the spotlight right now. Investors aren’t paying much attention to blockchain startups. They’re too busy shovelling money into the silliness of the A.I. bubble making machine that makes nice shiny bubbles. They’ll soon burst, but that just shoves blockchain into the shadows even further.
All of these come together in a perfect storm that leaves blockchain circling the digital ocean whirlpool as it faces being sucked down into oblivion. It is a technology of great promise. There are a number of ways it is being used successfully, but blockchain just struggles. Its hand held high to answer the question only to be ignored by the teacher. Blockchain always has the answer, but the teacher wants someone else to answer the question this time.
