Blockchain has the ability to disrupt the economy and society in a radical way. It can simplify the transactions and digital transfers between the individual without the need of any third party for intermediaries. 

Although Blockchain emerged only a decade ago, its foundation was laid out several decades ago with Cryptography and distributed ledger. Although Blockchain is in its infancy, it already allows individuals to make transactions without the need for ant intermediaries. 

Just think about it; who would have thought half a century ago that the distributed ledger and Cryptography used to secure data and connect different computers could be used this way.  

As Blockchain technology matures, it will certainly strengthen its shortcomings and improve. Yet, there remains a key challenge every country needs to address before they can use Blockchain on the international platform openly.

Today, we are here for the same purpose. We will take you through the challenges Australia faces with implementing Blockchain.

Blockchain: Decade Of Evolution

It has only been 13 years since Blockchain technology was introduced. However, in just over a decade, Blockchain technology has infiltrated almost all the industry and revamped how the industry works.

Within this short time period, Blockchain technology has already evolved three times, offering different and complex functionalities every time. 

The different generations of the Blockchain can be summarised in the following.

  • Blockchain 1.0: The first generation of Blockchain was introduced in 2008. This Blockchain allows the users’ transactions using the Bitcoin white paper. The information related to the transactions was written in the scripted language and can be decrypted with a particular key. 
  • Blockchain 2.0: The second generation Blockchain was launched with Ethereum. It came with a new feature ‘Smart Contract’. Smart contracts are general programs that offer more expressiveness about transactions. The transaction follows a digital contract automatically executed when all the terms and conditions are met.
  • Blockchain 3.0: This is the newer Blockchain we discuss in this article. It mostly focuses on scalability, governance, interoperability, and sustainability. You can even say that these are the pillars that support Blockchain 3.0.

If you want to know more about the evolution of Blockchain, visit bitcoin prime. Bitcoin Prime is a platform that closely monitors Blockchain technology and updates information for the users.

What Challenges Is Australia Facing With Blockchain?

1. Scalability

One of Australia’s major challenges is maintaining its integrity at an unprecedented scale. Moreover, as the number of computational devices increases, Australia finds it difficult to manage them, especially in times of natural disasters. 

For the Blockchain to work seamlessly, consistency in the connectivity is necessary for Australia to get the best out of the Blockchain technology.

2. Security

Blockchain technology is meant to offer security with the help of Cryptography and consensus. However, the Blockchain industry is still new and has loopholes. Hackers are taking advantage of it, making it difficult for Australia to invest in Blockchain technology.

3. Regulation

There is a serious lack of governance when it comes to Blockchain. This is not only true for compliance with rules and regulations but also with clear guarantees to the users. The Australian Government is still trying to find a way where codes can be considered a legal agreement between the two parties.

4. Education & Employment

As the largest exporter of education, Australia lacks the relevant education in this field, which makes it quite unclear as to what Australians want to do with this new technology. If only the nation could produce more engineers in the Blockchain industry, then maybe we can Blockchain adoption in Australia.

Final Thoughts

The scalability of this technology is an area that needs serious work. If we really want to scale this technology in Australia, we need to consider its design, where proof of work is not in place. 

Furthermore, as we move forward with Blockchain technology, other overheads will become more apparent. For example, you will soon find the need for storage space, communication bandwidth, and program execution. 

The security challenge will be the key to the full-scale adoption of Blockchain technology. As this technology is still incomplete, many experts find it hard to trust it completely.

Feature Pic By peshkov

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