With over $1.4 billion invested in blockchain applications, the technology is seeking to ready its self for wide spread application. While the technology is seeking to significantly disrupt the financial services industry, it is experiencing an issue in its application due to one of the fundamental principles of blockchain. The principle that all transactions are permanent establishes trust for users, but does not provide a method for the correction of human error or hacker theft.
In the financial services industry today, human error is a reality that is taken into consideration and has safeguards to correct the issues. In order for blockchain to truly be ready for widespread adoption, the technology needs to provide solutions to the challenges that are inherent to human interaction with the system. To accomplish this task blockchain companies will need to work with regulators to establish safeguards that provide users the ability to alter blockchain transactions that does not diminish trust in the system. Overcoming this challenge is blockchain’s biggest hurdle because it is the permanence of the system that provides users with the trust that traditionally has been provided through third parties.
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