Cap Gemini has released an interesting report on Blockchain. Below is an excerpt from that report.
Challenges facing companieswho adopt Blockchain Technology
While there has been a steady increase in the number of industries moving to adopt Blockchain technology, there are a series of challenges facing companies using this shared database.
One challenge when using Blockchain involves security issues around the authentication and encryption of the database. While the database is considered highly secure, the accuracy of each entry ultimately rests on the entity in control of each private account..
As with all areas of online security, there is also an increased need to protect against hacking. As well as a data security risk, current insurance policies may not support adequate defnitions or exclusions in their policy detail, leaving coverage of companies, banks, and individual insurance policies open to interpretation if hacked by a third party. For example, money is defned as any “government-backed currency” under certain crime policies. By this defnition, Bitcoin is not actually considered money (a question many governments have debated in recent years) and therefore could fall outside of the coverage zone if a hacker were to gain access to private keys in order to transfer bitcoins to his or her account.
It is also worth noting that while Blockchain may lead the way in innovative solutions, it is diffcult for the database to reach its full potential while banks try to fnd a way to integrate the technology with existing legacy infrastructure.
While out-of-date technology infrastructure is part of the problem, the biggest reason for the delay is ensuring the balance of functionality against security. When flexibility or innovation is prioritized ahead of security, Blockchain networks may be vulnerable to hack attacks or external threats.
Download this Report