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According to the FEM, a complete restructuring with blockchain is unlikely

June 24, 2020

Ashley Lannquist, head of the blockchain project for the World Economic Forum (WEF), said that blockchain has its use cases, but the technology is not without its limitations.

“I think blockchain technology is unlikely to be the underlying technology of all systems in the future,” Lannquist told Cointelegraph.

When asked about the biggest obstacle to the introduction of blockchain, she said:

“Because of the tradeoffs associated with blockchain, including features, limitations, and disadvantages, it was not easy to identify many high-quality use cases. This is likely to be a major obstacle to adoption.”

Blockchain has useful aspects to fight corruption

According to the FEM, a complete restructuring with blockchain is unlikelyAccording to the FEM, a complete restructuring with blockchain is unlikely

FEM recently published a report detailing their experiments with blockchain technology to fight corruption in the public sector. The report highlighted, among other things, the decentralization and immutability of anti-corruption technology. FEM is working with other bodies to carry out this project.

Blockchain is free from central control and offers potential for transactions as well as for direct data and documentation management without intermediaries, said Lannquist. FEM’s efforts aim to improve government transparency using blockchain, a technology that makes corruption inherently more difficult and more obvious.

“Corruption is an area with high potential for blockchain because you really benefit from decentralization. For example, registries are very difficult to remove or censor,” he said. Lannquist.

Blockchain’s ability is not unlimited

With many mainstream business giants trying to harness the power of blockchain for use cases like supply chain management, the technology still has its limitsLannquist explained. The FEM project encountered some of these limitations.

Lannquist in detail:

“This includes challenges related to scalability, anonymity, governance (for example, it is more difficult to correct errors and change network software in a decentralized network), the presence of new or different security risks and attack methods (e.g. attacks with 51% and double expenditure ) and slower transaction verification speeds compared to centralized database systems. “

At just about 11 years old, blockchain and cryptocurrencies still cross the water of childhood. The Internet also suffered from similar growing pains on the path to the impact it has today. Can blockchain technology see a similar future?