Undue Restriction for Blockchain Technology UnlikelyNovember 15, 2018
The major hurdle in the adoption of the blockchain technology by several industries are related to the uncertainty in the regulatory laws.
The uncertainty is related to many factors like the lack of relevant laws in specific jurisdictions, the laws are just evolving, and therefore several modifications are happening in the already existing laws, and no precedent provides a guideline of how the current laws can be applied to the blockchain.
Regardless of all of these hurdles, several companies around the world are actively making use of blockchain applications in several use cases. The value of the blockchain surpasses the risks of this technology. All that is required is attention to regulatory developments. There is a need for clear counseling about how blockchain technology can be integrated without compromising on regulatory norms,
Regulators are not able to prevent companies from making use of blockchain applications. This is because lawmakers and the government can identify the potential benefits of this technology. Governments are requiring their states to explore the risks and benefits of putting it to use by the state.
Some states in the US have already deployed blockchain technology in applications like that of the West Virginia’s voting application. Since the value of this technology is recognized, an undue restriction is not likely.
Because regulators recognize the immense value of blockchain technology, they are unlikely to restrict the use of blockchain applications by businesses unduly. Regulators are in reality concentrating on creating regulatory frameworks that will set the standards for blockchain applications, which can include making use of smart contracts and improving on data storage etc.
This comes with a very high potential for use cases in high-risk industries like health care and financial services. Financial risks and healthcare risks can be efficiently controlled using blockchain technology.
Several jurisdictions are passing new regulations, and it is becoming important for companies to upgrade themselves to the relevant laws applicable in their jurisdictions.
The Cyberspace Administration of China of late has published draft regulations for the blockchain-based information service providers.
Lack of regulation does not mean that companies are prohibited from using this technology. This technology is similar to any other technology a trending company might want to use. It is a lot like choosing a payroll system or a management application.
Companies are free to explore the options available to them within the prospects of relevant laws. So, if there are no laws in their jurisdictions, companies can still explore the options on pilot projects.
Companies seeking to use blockchain technology can make use of XinFin to develop customized apps for the portfolio of their company using blockchain technology.