Bitcoin Forum

One of the reasons why blockchain technology is not being widely used in the government and business sector is because of its anonymity. Guys just don't know who's doing what and people are scared about it. Blockchain is still an unfamiliar technology when it comes to regulation. We trust the cryptography, the protocols, the software, the computers, and the network, but this trust must be embedded in larger governance systems.

Existing major enterprise solutions are neither distributed (Hyperledger + Corda) nor have a focus on privacy. There is little to no progress here and these solutions are essentially just glorified databases.

Is this what's preventing wide-spread adoption and will a platform with a regulatory compliant identity layer (https://medium.com/concordium/introducing-concordium-f36e8fb34fe3) be a solution? I think once governments start using this, they'll understand the technology more and the rest should follow.

I'm sorry to say that you don't understand the freedom that crypto gives its users, we are safe from government interference because of crypto anonymity, I'm able to have some money without the government knowing how much my worth is, I'm not scared of the technology like you claimed and I'm happy that Nakamoto created bitcoin

Your worries bit shallow and I can understand that. But none of bitconers or crypto enthusiast will be under the supervision of some corrupt and selfish people. Cryptocurrency is given free and has shared privileged to use freely. I cant argue with haters that crypto is being bullied by those aspect of centralization but does concern the effect in market. Trust me, even with the current situation crypto will progress with or without these hassle that becomes hindrance to its negative view.

I think what OP means is about the government purely accepting blockchain technology. The fact that they're scared of using it which prevents regulations is a major blocker for adoption. Once they see a platform that they can trust, and that they can see people without the need of being anonymous, then they may start at it.

The public wants to be anonymous, the government sector won't in its areas.

It is not people who are scared about it but those who will use it in their company or whatever service they want.
We are talking about blockchain and not bitcoin here.
You could take out some of its incentives and produce something new.

The consumers or the "people" will just have to obey about the agreement. (We don't even read that anymore)  ;D
As long as you present something good, then everything will just follow.

I don't think that's preventing the adoption of blockchain technology. The government's concern about anonymity is more being applied with bitcoin and other cryptocurrencies rather than with blockchain technology. The blockchain technology is just a distributed ledger, database or record which can be used by any enterprise. I don't see any reason for them to look at it just the way they look at cryptocurrencies. It's the technology behind bitcoin but it can also be used for businesses that can see this technology being helpful to their productivity.

I think your average joe does not really care about whether it is anonymous or not. The biggest impediment to widespread adoption is that it requires too much of a learning curve. Once sending crypto becomes as easy as sending a tweet then you will see the mass audience and not just the technologically savvy adopt it.

I guess you are mixing up blockchain technology and crypto currencies in this case. I mean, where is the problem with blockchain and the government? You are saying "anonymity" is the cause why government and others are not using blockchain. You are wrong over here. Blockchain is being used by many companies. We don't use blockchain just for crypto currencies. They also have various applications too.
Most crypto currencies being pseudonymous and anonymous is what preventing the government from adopting it. Other than that, the technology itself is doing good.

Crypto currency is still gray sector of law and there are not so many users of them actually. Thats two main reasons

You are right, the current obstacle is that crypto transactions using the blockchain network are still very much affected by the transaction traffic that occurs. because it can affect the speed of the transaction. the bad thing at this time is that it still takes less time to make a transaction. that's what makes crypto still difficult to be used as a means of payment.

I partially agree with this. I think it is easy enough already, however we have too many scams around.

There are too many bitcoin cash, bitcoin sv, bitcoin gold etc... which is confusing for newcomers. There are also too many scam tokens around, w hich are really problematic to newcomer which may lose money and that taints bitcoin reputation.

Additionally, there aren't still many things we can buy with it, neither proper tools for traditional investors (such as an ETF).

What do you mean that guys dont know who is doing what?  Problem of transparent ledger crpytocurrerncies is that whole world can see what are you doing.  If I go to bank and deposit $1 million. Who will know I deposited it?  Only me and the bank will know.  If I buy for $1 million of Bitcoin and then use it. Who will know that I have $1 million of Bitcoin?  Me, the exchange and everyone I traded with. And everyone of them can give information that that wallet belongs to me. Sell that information or just simply give it away.  

Transparent ledger crpytocurrencies are way less anonymous as the current banking system we have.

Yes, this is the main reason that prevents it.
Imagine that you come to a store and buy a chocolate bar there for example. Then you eat it at home and suddenly you have a stomach ache - you are poisoned.
You want to write an angry review on the Internet about this or even go to complain to a hypermarket - but look at the packaging from the chocolate bar... There's nothing on it. It is clean as a white sheet and there is not even a production date. Are you happy? I wouldn't be happy if I had no one to complain about the chocolate bar.
And now imagine that all the chocolate in the country is like this - this is what the state does not want to allow. One of its goals is to oversee everything and stop bad things. And bad things can't be stopped if you don't know who's doing them.

It's one of a few that make the general public view shy away from cryptocurrency, sure. I think because cryptocurrency threatens and undermines the government's authority and banking system that preventing widespread adoption of cryptocurrency.

Crypto currencies are hated by the government, of course BITCOIN, they hate because Bitcoin will be a threat, but the positive side is that Bitcoin cannot be regulated, like the government is against the community. just relax Bitcoin will live forever if the internet still exists  ;D

I think you are mixing up Blockchain technology with Cryptocurrencies. Blockchain technology has already been recognised by most of the countries while Cryptocurrency remain in the grey area. Even for cryptocurrency, I don't think anonymity is the major concern, because most of the cryptocurrencies aren't anonymous.
The idea of decentralised network is what the Government fears, if you ask me, as it may destabilise the central authority which the Government holds now.

But how it can be any easier than what already is? If you want to install a bitcoin wallet the only thing that you need to do is to download it and install it like any other software, and if you want to send money you can copy and paste the address where you want to send your money, introduce the amount that you want to send and then you just have to confirm your transaction, I do not really see the complexity in it because those are the very same steps that you need to take if you want to make use of online banking.

A corrupt system will not want to see a decentralized cryptocurrency strive in their system because they know they would lose the power to control and acquire or wealth and power to themselves. WHich is why some of the countries that have adopted the technology (blockchain), are planning to create their own centralized cryptocurrency, which they would be able to control. A typical example of that is China.
If governance can be clean, I see no reason why adopting total decentralization should be a problem. They do not just want the people they control to be free and be on their own.

It could be. The anonymity is just an option in blockchain of course it can be taken out if not necessary. The government can actually use a lot of blockchain even the ETH network, its open for all.  They would have to rely to some other government who uses it and for now I don't see any government that actually uses like for electoral process or government IDs. Non of them will try to act like a genie pig for this technology.

I think the anonymity hides of identities and just provides wallet address and not home or office address  ;D . The government to me could be having might be lack of control. The government likes controlling power so to monitor and regulate. But all of that is absent with bitcoin use.

No, you may no believe it but the main selling point for Bitcoin was its anonymity in early days. Do you know how big the dark market is, I think people need to forget the preconception that crypto is for everyone, it is for certain type of people and has these meet this market niche this is good. I don't need to do KYC to spend my fiat so why Crypto.

It's left for the public to make a decision here, crypto is here to provide that anonymous for us, of course the government won't like this but who cares anyway? Those who aren't embracing crypto presently are those who are too scared of losing their money, even if government do legalized crypto there will still be losses and profits, crypto is volatile

Anonymity in bitcoin is a preferable thing, not a forced or mandatory thing. You are given a wallet address and you can never reveal that your wallet address is this or you can simply just tell everyone what your address is. So, in the real world if you do not want to stay hidden, simply just put your money in a card, and spend that card, and your card will basically show wherever you spent your money on and how much and so forth.

This is why that can't be the reason, the simple reason is the fact that everyone already has currency that they use, to tell people start using another currency at all is difficult. Even when everyone moved from their own currency to Euro it was difficult and that was mandatory, so I do kind of understand why something like bitcoin may take some time.

Another thing hindering mainstream adoption of blockchain and cryptocurrencies is the lack of control it has. Since most governments and economies lack the ability to control Bitcoin which they consider a great threat, they have taken it upon themselves to ensure its adoption nver see the light of the day. There have been several reports of big financial bodies doing all they can to ensure the topple the immense success blockchain has recorded. In a bid to keep the power of financial dominance in check, these institutions have taken it upon themselves to ensure the blockchain innovation is killed at all cost.

Even if this is the hurdle for blockchain and crypto mass adoption i think the solution can be easy and it can be developed in few weeks time, for example, ethereum is the largest platform used till now for dapps, defis, businesses, automation and other purposes, the solution can be that they come up with an additional feature where each and every wallet or id must be affiliated with the basic bio data or with full kyc as the regulators may guide and then i do not think there will be any exchange left to adopt crypto.

Take a look Chinese government now, they are implementing blockchain system in all aspect.

What that's mean? It is an adoption that we didn't think before and it could make a lot of countries out there adapting it.

As we know, the system that being used by most people in this world is using technology. They are refused the traditional system because they find a lot of disadventage.

Can you thinking how much fees that must be spend if you send money through traditional system? You'll need a long time to accept your money and you need to spend a lot of money to doing so. But with blockchain you don't need to spend more time and high fees, in one minutes and $1 to make a transaction.

Anonymity makes it more vulnerable to illegality and it gives worries for the government authorities to resolve problems especially when it involves crime. But that is not the reason why they are not encouraging people to adopt the system, it is also because of its volatility feature where people get at high-risk investment. They have some claims and that security level is somewhat a big problem in crypto.

I do not agree with you, there are widespread adoption of crypto currency already across several nations, and the core reasons why it seems otherwise is that not all government have legalized it.

But to my believes, government quiet about crypto currency and blockchain are excited ethusiasts.

But one of the biggest countries which U.S, are not really believers.

Besides Anonymity, I think the major reason is not been regulated, government and business parastatals are all about regulations and control which this space do not possess, even though being anonymous and not able to have the identity of who is or are behind a project is part of the reason, not regulated is also another reason, and from my on opinion this would be a major set back, it won't be easy to form a business in an unregulated environment, there will be a lot of problems as a result.

You can be anonymous in crypto, if you want to be, but in the same time crypto can be transparent! Why to complicate, I don't care about you guys here, you can be anonymous, it's your thing, but all public and health organizations should be transparent. Do you think that politicians will be able to cheat people if every transaction they make is visible to all of us?
I think that wide spread adoption is happening for years, it's just not fast. People are learning slowly about this new technology, but new people are coming, and mostly those people (like many of us here) are sick from banks and stupid government regulations, politicians that work for rich people.
You talk about how we need government regulations, I say blockchain is already regulated in many ways, every coin is regulated, you know what you can and what you can't do, you know how it's being distributed.

Most of the business tycoon always wanted to have clear deal, if they don't know who are they dealing with then it won't be easy to convince them. Same thing with adopting this system, if there's no clear explanations how things works then it will be harder for more businesses to established this system being used and be  adopt from their everyday transactions.

Blockchain maybe anonymous when it comes to cryptos but all the transactions on blockchain are completely transparent and its not possible to alter anything once it get recorded there so governments can implement them on various sectors and the process has been taken by some governments already.

Maybe they are not, but if the crypto spreads widely and reach more people out there, people in the US will follow too if they don't want to be late. While crypto is growing from time to time, people need to learn before they join in the crypto world. People will choose what they want, and if they want the freedom to manage their money, they will use crypto.

People in the U.S are fully into crypto, I have friends in this part of the world that fully embraced the technology, crypto was never built to be a government's pet, people who are waiting for govs approval or legalized missed some details about what crypto really is

Not most I guess most especially their government is still against the legallty of crypto in that county and I guess it would take time them to fully embraced unlike in china, korea and japan have already been in crypto legalization. It would take a little time of us to see it globally adopted.

Honestly, we will need a lot of time to see the cryptocurrency being applied globally. It is a very difficult problem to happen because the laws are different in every country and their mindsets are also different. BTW countries in Asia seem to love cryptocurrency

The transaction online in the blockchain could be anonymous but the moment you trade it to cash and cash out or when you deposit, it will not be anonymous as the moment you create an account in an exchange site, you'll need to comply with the KYC.

let us not confuse ourselves with the blockchain anonymity and exchange transaction as they are different.
If crypto to crypto transaction, its anonymous but once it involves fiat, you'll loss your anonymity.

Even though many people wanted to get into crypto still it is not considerable amount compared to total population of that country, legalization can be a factor but having no one to educate the economy structure of the government is the main thing.People thinks that money is safe but they never aware that the purchasing power of money keeps losing because of inflation.

Hope you have read all the responses, first you need to study how the blockchain works, it is not about anonymity but the opposite what it does.
Think about what blockchain does, it is a record that cannot be manipulated or erased and if that is the case, how can you think about being anonymous :P.

Government will always find a way to interfere in the market, the regulations are coming and there is no way you are going to hide from that. All the crypto exchanges will be regulated and if you are planning to use any, you need to verify your identity and every transactions can be monitored.
In future majority of all the scams and frauds that use BTCitcoin can be traced and that is what i am hoping.

The thing is that governments understand blockchchain technology and they really want it for their countries' growth. However, due to not able to control it which is resulting in tax theft and money laundering and not able to regulate it, they are not in favour of this technology.
Hope soon more countries will adapt it with their own regulations.

Yeah basically there are some regulatory and taxation issues and those are complicated because crypto is generally anonymous and this complexity has put most governments around the world into confusion regarding crypto but i think all these things will be resolved and a good solution will come forward soon and we will move to mass adoption starting next year.

to be fully used in governance about Blokchain technology for governments must go through a joint meeting in all related institutions. because changing the government system is not as easy as we think

I think that anonymity is basically what drives people to care more about Bitcoins and cryptocurrencies rather than the fear of it. Sure you can say the mainstream financial sector and governments does not have any use or little use of it now but you can see that many people are using Cryptos and also other industries uses the blockchain technology without any hesitation. It is just a matter of time before mainstream economy would finally recognize the importance of the technology and be able to adopt to it.

I will start by saying that the government likes controlling things and private informations is among thus they hardly will be part of anything they can't control. So indirectly, it might look like they are restricting the growth and wide-spread adoption of crypto but it's a matter of time for more people to start assuming control over their private details, understanding and using crypto more, then leading to the required adoption. Also, what to understand is, a good number of people in the crypto space are not afraid but instead happy that they can move funds in an anonymous way , at a lower charges, faster and efficient way than the current financial systems and that is enough to keep the ball of crypto adoption rolling.

There could be multiple reasons for blockchain is not hitting yet main stream adoption levels but one prime reason must be lack of awareness. Most business are awaiting for "reviews" from others before adopting blockchain technology even they are well aware of it. So, other than lack of awareness, fear factor to adopt new technology is playing a major preventing role here. It will take more time as we cannot expect technological revolutions to happen in lightning speed.

In my opinion, nothing is preventing wide-spread adoption of blockchain technology. Yes, I do see it is slowly getting spread everywhere. We must take time to evaluate blockchain technology to fix all its pitfalls because directly implementing it into high level/sensitive business might end up in disasters. So, slow and steady will win here as well.

I believe in multiple reasons too, but probably the main reason is that majority of people don't know about cryptocurrencies, and many more do not use any cryptocurrency! I think that small business should start this practice and people needs to follow, if that happens with many people government regulations can't hold long! Power is in the people, not in few people, when we unite and overcome our differences we will have a mass
adoption.

I think that it can't be that some technology suddenly quickly replaced all the old systems in the economy, management, etc. This is a very long process. Everything is complicated. In addition, the new is not always better than the old. Modernizing the state infrastructure is a very serious process. It's not as simple as releasing the next model of iPhone.

We should not be talking here of replacing the system because eventually the government will approve blockchain and though blockchain will be widely used, the current centralized system will still be dominant as its controlled by the government, worse possible scenario is that the decentralized market will slowly transform into a centralized one since it's regulated by the government where they can monitor and control the law.

officials with company as they have with uses on customs of basics with ideal competence might gains of benefit as the use with the blockchain technology gives with option on reference as they might be with opportunity to join as gathering connection with different works of blockchain network with the service on field of different ideals following the science major on objective with the main issue as composite of offers with the service.
as the personal dominance on possessing uses with one or more of distinctive of customs with expertise helps on subjective as person to put of limit of expends on appealing chance of relation within the field of issues on moderation.

Claiming that the US is not a believer of the blockchain is wrong in all perspective, the US is just a cautious nation, and this is evident after a second exchange platform got license to enable trading ethereum futures.

One thing to make wide spread adoption convenient and safe for all nations, is to have a supervision team to look over whoever is creating a dex or cex exchange for citizens, put that under supervision and frauds would reduce drastically.

There are making some developments every day that will gonna change people their perspective about blockchain technology. that good thing right now is, there are lots of courses to choose from when it comes to blockchain technologies. the next generation of students who study it will become one of the major contributors to its development in the coming years. In our country only, there are some students who manage to win some awards on blockchain technology competition. incoming years there will be lots of competition like this will occur that leads to blockchain technology become one of the trends in the world in the years to come.

Wait, we have to get this straight. Blockchain is very useful to increase effectiveness and speed up the work process, so as to increase the efficiency of time and effort. So that it is currently widely applied in several companies, including banks. Maybe what you mean by anonymity is cryptocurrency? in fact, cryptocurrency is built on a blockchain network, and what a blockchain can do is not just the cryptocurrency threshold.

No that is not the reason which is preventing the use of the blockchain it's about government regulations and many projects don't feel the need for blockchain and decentalisation right nowm

The transition from the traditional system to the blockchain technology is almost impossible to be done in all of sectors. It can be done easily in the financial system but it's not for the rest.
The correlation between each institution is very strong to determine the output and i think this will not happen in short time.

But the cryptoworld has become a big market already. .if you look at the market now based on https://coinmarketcap.com/ only, total marketcap is over $250 billion, that would obviously tell that people wants blockchain because without their interest, the market will not grow this fast.

The only thing that "stops" wide spread adoption is the pace, this is a technology and you do not have to spread any technology very fast if it is not really a life or death situation. For example a game comes out and no game is life or death, it doesn't need to be sold, it doesn't have to be bought, but you look at it and on the first day some games are sold over 5 million copies.

Do we have 5 million people dealing with bitcoin? Maybe we do, maybe its a bit more, but certainly it wasn't the first day we got there. Which means we need to do what games do in order to get adopted, in order to get used by more people; marketing. There are literally no marketing done on bitcoin itself, nor on blockchain, since we are decentralized bitcoin is not anyone's so nobody takes up that bitcoin marketing and adoption work to themselves.

That is the fact. So that inaccurate information, such as the misuse of bitcoin for illegal actions, money laundering, black market, fraud, etc. makes the public view of the crypto world worse. Even though it's just an exaggerated problem. Behind that, the benefits offered by bitcoin are huge, this is technological progress. So only people who truly want innovation and change will realize this. As time passes, I'm sure bitcoin can prove that the benefits it brings are greater, don't let us be part of those who regret having been late in realizing this potential.

Those are just excuses, governments have dedicated decades of effort to try to make people to adopt digital means of payments because they know that they can track every single transaction which is something that they cannot do if you use cash, not only that they could always silence people by blocking their bank accounts, but bitcoin gives you true freedom by not allowing anyone including governments to block your funds or your transactions and that is what they are afraid of.