Blockchain: Speed, Efficiency, Decreased Costs, and Technical Challenges

Abstract

This chapter explores blockchain's five key elements ‒ distribution, encryption, immutability, tokenization, and decentralization. It also examines blockchain's potential to revolutionize today's businesses by looking at the efficiency and transparency blockchain brings to business processes. In addition, the chapter discusses the added benefits of traceability and potentially decreasing long-term costs before reviewing some of the known technical challenges blockchain faces today especially pertaining to commercial and enterprise adoption. Limited block size and low-transaction rates potentially inhibit blockchain's ability to scale to meet the needs of current and future enterprises. The lack of blockchain standards, along with creating multiple blockchains, complicates interoperability between the various blockchain platforms. The chapter concludes by offering potential solutions to blockchain's current technical challenges and how enterprises might adapt blockchain in the future.

Citation

Wilkie, A. and Smith, S.S. (2021), "Blockchain: Speed, Efficiency, Decreased Costs, and Technical Challenges", Baker, H.K., Nikbakht, E. and Smith, S.S. (Ed.) The Emerald Handbook of Blockchain for Business, Emerald Publishing Limited, Leeds, pp. 157-170. https://doi.org/10.1108/978-1-83982-198-120211014