Challenges for Blockchain

Fields & Superiority & Instances

Application Fields	Technological Superiority	Fields Instances
Payment & Settlement	Reduce the cost of clearing intermediary(bank, third party payment)	Ripple，the world’s first open payment network
Asset Transaction	Reduce the cost by reduce the number of intermediaries and improve the efficiency of the process	NASDAQ launched the equity trading system（Linq） that based on blockchain technology
Registration & Authentic Right	Information transparency, information security and effective (Immutability)	Honduras government uses Blockchain registration for real estate information
Quik Auditing	Ensure data integrity and accuracy, and improve data reliability and efficiency	DDT in the service of auditing by Blockchain

Superiority & Challenge

• To solve the trust problem in the sharing economy, reduce fraud and increase trust:Blockchain can make it difficult to tamper, add or delete transaction recording. This can solve the distrust problem between consumers and sellers, then accelerate the development of the sharing economy, especially for the distance users in a far business scenary.
• To improve the efficiency and transparency of the parties: improve the transparency of the sharing data in the exsisting system, then reduce the cost and improve the efficiency. For example, all transaction parties can share the transaction data by blockchain technology, simplify the process of transaction clearing and settlement, completely avoid data errors caused by manual proofreading, manage process and shorten process time.
  With the high credibility and transparency of blockchain technology, the commercial operation will face many hard challenges. And the key challenges in any fields are as followings:
• Standard: If Blockchain used in extensive fields, the data and process should be standardized and defined well by enterprises and IT service providers, and ensure this agreement can be used in the entire industry.
• The interest conflict and business process conflict between enterprises: If the trading parties cannot reach to a consensus due to these commercial conflicts, which may slow down the acceptability of blockchain technology.
• Policies and regulations: There are many polices and regulations in the bank business, payment, clearing and some related insurance and stock products. All of these fields should change the data format and business process, so it need to adjust the relevant policies and regulations, some of these should be authorized by the supervisory level before implementation.
• Speed: The response time of the traditional database is faster than the distributed database, because it is a distributed database with full backup by any nodes. So the Blockchain system in real-time and on-line should be suitable for high-speed trading with high frequency. But the experts cannot learn the practical loading potential of the technology due to the lacking of instances.

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