Can Blockchain Communities and Institutional Enterprises Coexist?
After attending various crypto events in Zug, Dubai, and Lugano, one question lingered in my mind: Can blockchain communities be engaged and empowered while also meeting the strict regulations of institutional enterprises such as banks and pharmaceutical companies?
While Bitcoin has paved the way for decentralized currencies, it may not necessarily be the future of blockchain. The challenge lies in balancing the transparency and liquidity of a coin with the requirements of industries that must adhere to national laws and industry standards.
The Dilemma
Can banks store data within their own country while utilizing blockchain technology without upsetting international communities or governments that deem certain countries as non-compliant? Similarly, can industrial groups maintain privacy while leveraging blockchain for operational certification and engaging the next generation with crypto incentives?
Despite a decade of Ethereum and other first-generation blockchains, the issue remains unresolved. Businesses and governments hesitate to adopt Bitcoin or Ethereum due to the majority of transactions being approved outside their jurisdiction. This lack of scalability, high transaction costs, and slow finality have hindered widespread adoption.
A Call for Innovation
Existing blockchain networks do not adequately reward quality among node operators or coin holders. They also fail to address the modularity required by heavily regulated industries. Bad actors continue to plague the system, alienating potential B2B use cases and institutional investors.
However, new blockchain platforms are emerging to address these shortcomings. By offering modularity, security, and features like proof of reputation, these next-generation chains aim to provide fair compensation to community members and businesses alike.
The Path Forward
For blockchain to succeed, it must cater to the needs of both businesses and community members. Enterprises require protection and auditability, while community members seek fair treatment and higher incentives beyond mere speculation.
By embracing decentralization, privacy, and segmentation, the next chapter of blockchain innovation promises to bridge the gap between community engagement and business efficiency. This new era calls for collaboration and choice, driving towards a more inclusive and equitable blockchain ecosystem.
As we reflect on the past decade of blockchain development, it is clear that a shift towards fairness and sustainability is imperative for the industry’s future success. Let us strive to serve both community and companies, making blockchain technology accessible and beneficial for all stakeholders.
Frank Pagano