Until the decade-old technology is improved and fortified for use in any industry, it will face stumbling blocks in cybersecurity use-cases

However, despite its potential, challenges remain, including scalability and regulatory concerns. What do other industry leaders think about using blockchain technology in cybersecurity use cases? Dr Ravi Chamria, co-founder and CEO, Zeeve, said: “Blockchain secures data confidentiality by separating personal information from transactions. Additionally, zero-knowledge proofs allow transactions without revealing sensitive data. For data integrity, blockchain uses a tamper-proof system with unique digital fingerprints for each block, making it nearly impossible to alter records. Finally, the distributed network structure ensures high availability by eliminating single points of failure and minimizing downtime. However, there are better solutions than blockchain.

Dr Ravi Chamria, Zeeve
Kumar Ritesh, Cyfirma

Other challenges

In addition to the strengths and vulnerabilities/limitations of blockchain listed about, proponents of the decade-old technology have encountered diverse stumbling blocks in expanding outside of cryptocurrency use:

    1. Regulatory uncertainty: Governments and regulatory bodies are still grappling with how to regulate cryptocurrencies and blockchain-based financial services, leading to uncertainty and compliance challenges.

    2. Scalability: Blockchain networks are still struggling with the processing of high volumes of transactions quickly, leading to slow transaction speeds and high fees during peak times.

    3. Security: Ironically, while blockchain itself is secure, the surrounding infrastructure (exchanges, wallets) has been vulnerable to hacks and thefts.

    4. Integration with legacy systems: Different organizations and supply chains may use different blockchain standards and systems, complicating data sharing and interoperability.

    5. Propagation of errors: Although the technology ensures data immutability, if inaccurate data is entered, it remains in the blockchain permanently, potentially propagating errors.

    6. Interoperability: Different organizations and supply chains may use different blockchain standards and systems, complicating data sharing and interoperability.

    7. Industry-specific concerns:

    • In healthcare, managing sensitive health data on a blockchain while complying with regulations like HIPAA (Health Insurance Portability and Accountability Act) is challenging. Interoperability is also a challenge. Healthcare professionals and institutions can be resistant to change, particularly when it involves complex new technologies.
    • In the real estate industry, legal and regulatory barriers make integrating blockchain complicated, and convincing all parties to adopt and trust blockchain technology is a significant hurdle. Ensuring secure and verifiable digital identities for participants is also crucial but challenging.
    • In government and public sector initiatives, proposal and buy-in can be slow due to bureaucratic inertia and the need for extensive testing and validation. Ensuring blockchain solutions comply with various local, national, and international regulations can be complex. Furthermore, gaining the public’s trust in blockchain-based voting systems or digital identity solutions is challenging.
    • In the entertainment and media industry, intellectual property rights, ensuring that blockchain systems accurately reflect and enforce IP compliance and arbitration is complex, just as it is challenging to convince artists and content creators of the benefits and ease of use of blockchain platforms. Also, competing with established digital rights management systems and platforms is difficult.