ITNOW's Popular Computer Science (or PopCompSci) brings the most exciting stories from around the world of computer science together for a taste of the unexpected ways in which tech is impacting our lives. Here, we tell you about research from the University of Surrey which examines why blockchain hasn't lived up to the hype.
Once touted as a transformative panacea for governmental and organisational ills alike, blockchain’s adoption has, in reality, turned out to be slow and rare. Research from the University of Surrey explores why the technology has failed to live up to its initial expectations, urges a narrative reset about digital ledgers and, ultimately, points to a positive future for blockchain.
Blockchain is a secure digital ledger that records transactions across multiple computers, making it hard to alter. It's a shared notebook where entries are unchangeable. Initially hyped for secure, transparent transactions without a middleman like a bank, blockchain is the backbone of cryptocurrencies like bitcoin.
To understand more about attitudes to blockchain, PhD candidate Ying Zhang led a comprehensive review that analysed 880 factors. The work, carried out in collaboration with researchers from Surrey Business School and Cardiff Business School, explored attitudes influencing blockchain adoption by organisations across various industries.
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Senior Lecturer in Strategy and Digital Transformation Dr Mahdi Tavalaei, PhD supervisor and co-author of the study at the University of Surrey, said: ‘Organisations are understandably cautious. While blockchain has been touted as a revolutionary technology, our research suggests that its adoption is hampered by over-promised benefits, under-delivered business value and the complex interdependence between adoption drivers and barriers.’
On the positive side, researchers found that blockchain's unique capabilities, such as enhanced transparency, security and operational efficiency, are strong motivators for adoption. However, barriers often overshadow these drivers, which complicate adoption efforts. The analysis found that adoption barriers, such as regulatory uncertainty and scalability issues, are more definitive. In contrast, the benefits of adoption are conditional and long-term, creating a mismatch that slows organisational decision-making for adoption.
Dr Tavalaei said: ‘Organisations are not just dragging their feet; they are making informed decisions based on the current limitations and overhyped promises of blockchain. We hope this study will shift the conversation towards more practical and achievable goals for blockchain technology.’
New study: reveals why organisations are reluctant to adopt Blockchain | University of Surrey
