Increasing Complexity Of Blockchain Is A Challenge For Web 3 Adoption: Experts

There have been concerns about the current state and future potential of blockchain technology. Critics have collectively expressed their views on the challenges hindering the widespread adoption of blockchain and its ability to deliver on its promises.

Speaking at the BW Businessworld's Web 3 summit, Jagdish Ramaswamy, President, and Chief Digital and Information Officer of Hindalco Industries, Aditya Birla Group, emphasises that while blockchain technology has received considerable attention, its true potential remains underutilised. He believes one of the major obstacles lies in the increasing complexity of blockchain, making it challenging to harness its full benefits.

Ramaswamy further highlighted along the same line, saying, “Blockchain's fundamental strength lies in its ability to transmit data with trust, which needs to be leveraged effectively.”

Experts raised the critical issue of interoperability in the blockchain ecosystem. Ashish Pandey, CDTO, and CIO of Haleon, explained, “There is no single unified blockchain network that all entities can rely on. The birth of Bitcoin marked the beginning of this unique technology, but widespread adoption faces hurdles due to the fragmented nature of different blockchain networks.”

With decentralisation, Web 3 comes with its own set of challenges over security and regulations. There have been several incidents of phishing and scams, which are mostly driven by the lack of awareness among users. Manoj Srivastava, CIO of EasyMyTrip.com, pointed out two key challenges at the framework level for blockchain. Firstly, he stressed the importance of trustworthiness, considering that blockchain relies on decentralised consensus. “Ensuring trust in the system is crucial for broader acceptance and the issue of interrupted data transfer between departments, emphasising the need for seamless data flow to fully utilise blockchain's potential,” he adds.

Mudit Marda, Co-founder, and CTO of Drife, slightly touching upon the lack of accessibility that these advanced technologies pose, explains the barrier to blockchain adoption. "Blockchain can reach the masses through mobile phones and daily-use applications, making it more approachable and integrated into people's lives."

Moreover, experts' collective views shed light on the challenges faced by blockchain technology in reaching its full potential. Collaborative efforts among industry players and continued research and development could pave the way for a more inclusive and robust blockchain ecosystem.