Three challenges facing blockchain technology – TechCrunch

Nearly five years ago, Overstock.com became the first major retailer to accept bitcoin as a form of payment. It now accepts many top cryptocurrencies. As a member of the senior executive team and board of directors at Overstock.com, I had a front-row seat to those decisions.

It did not take long for the Overstock team to realize that bitcoin's underlying blockchain technology held great promise beyond cryptocurrencies. We also knew that for blockchain technology to reach its full potential, the start-up companies would like to use it.

Overstock set up a venture capital blockchain incubator, Medici Ventures, to do just that.

We believe blockchain technology will eventually impact many industries. We are already involved in equity capital markets, money transmission and banking, voting, supply chain, property and self-sovereign identity. But there is still a long way to go before blockchain technology can realize its true potential.

Here are the three most important challenges facing the global adoption of blockchain technology right now.

Finding a good business-level blockchain software developers

The world has become so connecting to computers, to the point where virtually every company has a need for software development. In this environment, where demand grows exponentially, good software development talent is hard to find. Game-changing talent is rarer still.

Because blockchain is a new field of technology, there are fewer talented enterprise-level software developers who understand it well. Those who can practically write their own tickets. While this is an enviable position for them, it is also important to develop blockchain-based applications.

At Medici Ventures, we provide regular international training to help our software developers climb this important learning curve. In this training – which we do in educational presentations which sometimes include accelerated coursework – our teams often present discoveries made when developing on one project, with the hope that the solutions may be used. This approach allows us to cross-pollinate our industries and our disciplines, so creative development and innovation will become more flexible than isolated spikes.

The time spent learning is well worth it; it is why many of our portfolio companies rely on our venture capital, but also our human capital. Until there is a steady pipeline of well-qualified blockchain developers, the shortage of great talent will continue to be a struggle for the advancement of technology.

Avoiding the temptation of regulation

Like many of their voting constituents, Congress and state legislatures are just becoming aware of blockchain. In some ways, this is good news: Political engagement will increase awareness and interest for utilizing blockchain technology and help drive adoption of these new ideas. Unfortunately, it also has the temptation of regulation to an emerging market.

I get concerned when regulators and legislators get a whiff of any kind of business because they are tempted to regulate it. When U.S. Securities and Exchange Commission (SEC) chair Jay Clayton said that it is considered to be more important than current offerings (ICOs) to be securities rather than commodities, and therefore subject to its organization regulation, Clayton brought an ICO boom to a screeching halt. While Chairman Clayton and others at the SEC have subsequently modified that stance, this is a new risk.

Technology – and the advancement of blockchain – should not be regulated. In the 1990s, when the Internet's potential was becoming obvious, legislators opted not to regulate it. That bipartisan decision led to the open-market creation of the much-lauded "superhighway information" and the power of the internet today.

Certainly, there will be some cases that may require regulation as blockchain applications develop and proliferate. But the growth of blockchain technology will be better when it is free and unfettered from regulation.

Reaching critical mbad

Cryptocurrencies and digital wallets are built on blockchain are great uses of technology. In order for cryptocurrencies to proliferate in the market and stabilize in price, and for digital wallets to get widespread adoption, A great example of this working is Colu, an exciting new company I was in Tel Aviv, Israel. Colu is a digital wallet that uses blockchain technology to create local currencies. People simply download the app and add money and shop locally. The app highlights local establishments and makes shopping convenient. And it is dazzling people in Tel Aviv!

The same can be said of other blockchain-based applications like secure remote digital voting. West Virginia has recently become a remotely using a blockchain-driven app. The West Virginia was tested in the May primary and was used in this November's general election.

Some critics have been quick to disappear. In reality, the rollout in West Virginia is a very focused solution to a specific issue. The current system is broken. A blockchain-driven digital voting app is a clear solution. Anyone but critics of progress should eagerly support West Virginia's efforts.

Once any blockchain is used, the software will become an invaluable and ubiquitous tool. More widespread adoption of blockchain's most beneficial use cases will trigger network effects that will multiply the benefits.

Let's remember that we are in the early days of blockchain. Many industry observers seem to be in a rush to declare blockchain has mainstream technology. As enthusiastic as I am in my support of blockchain, I would not yet call it mainstream. The interconnectedness of the world will take place quickly and quickly. We will know blockchain technology has become mainstream when we are not talking about it.

I am thrilled to see digital purchases and remote votes cast in elections with this game-changing technology. As developers, investors and companies continue to focus on and promote blockchain, we will be able to find a solution that will help you to improve your business. of this world-changing technology.