Commercial viability is often thought of as a measure of how well a technology or product can be integrated into existing markets and business models. For blockchain, commercial viability is about how quickly the technology can be adopted by enterprises and how it can be used to create new business models.
The answer to how long it will take for blockchain to be commercially viable depends on a number of factors, including the maturity of the technology, the regulatory environment, and the willingness of enterprises to experiment with new business models.
The technology behind blockchain is still in its early stages, which means that there are a number of challenges that need to be addressed before it can be widely adopted. One of the biggest challenges is scalability; the current generation of blockchain platforms can only handle a limited number of transactions per second, which is a major bottleneck for widespread adoption.
Another challenge is interoperability; blockchain platforms are currently siloed and not compatible with each other, which makes it difficult for enterprises to use multiple blockchain platforms.
Finally, there is the regulatory environment; blockchain technology is often associated with cryptocurrencies, which are currently unregulated in most jurisdictions. This regulatory uncertainty makes it difficult for enterprises to experiment with blockchain-based business models.
Despite these challenges, there are a number of factors that suggest that blockchain technology will become commercially viable in the near future.
First, the technology is maturing; new generation of blockchain platforms, such as Corda and Hyperledger Fabric, are addressing the scalability and interoperability issues.
Second, enterprises are starting to experiment with blockchain-based business models; for example, IBM is working with a number of banks to launch a blockchain-based platform for cross-border payments.
Third, the regulatory environment is starting to change; in March 2018, the SEC issued guidance on how digital tokens may be regulated, which provides greater clarity for enterprises experimenting with blockchain-based business models.
All in all, it is difficult to predict exactly when blockchain will become commercially viable, but the current trend suggests that it will happen in the next few years.
Other related questions:
Q: How fast is the blockchain industry growing?
A: The blockchain industry is growing at a rapid pace. According to a report by Grand View Research, the global blockchain technology market is expected to reach $20.3 billion by 2025. This represents a compound annual growth rate (CAGR) of 79.6% from 2018 to 2025.
Q: Will blockchain ever become mainstream?
A: There is no one-size-fits-all answer to this question, as the mainstream adoption of blockchain technology will largely depend on the specific industry or application in question. However, it is safe to say that blockchain technology has the potential to revolutionize many different industries, from finance and healthcare to supply chain management and voting.
Q: How long does blockchain take to implement?
A: The time it takes to implement a blockchain solution depends on the specific use case. For example, a simple blockchain application could be up and running in a matter of weeks, while a more complex application could take several months to develop.