Blockchain bears a number of enterprise adoption issues keeping it from wider data storage use, according to Djuno Founder and CEO Moe Sayadi.

Blockchain has had a rocky start in shaking its image problem and lingering associations with cryptocurrency, but it has finally begun to break into wider adoption. "Essentially, when we talk about blockchain we are talking about decentralized and trustless, public, and transparent networks,” Sayadi told SDxCentral.

"Blockchain is a data storage technology, and at the same time is a form of platform [or] infrastructure. I believe the way we manage identity is certainly going to be revolutionized [in the way that] object storage and identity-access management are in the pipeline,” he continued.

Despite a proliferation of blockchain uses, Sayadi says because the technology is still in its infancy, there are a lot of roadblocks ahead, and it ultimately hits a “glass ceiling” of data storage offerings.

Blockchain blockades

The biggest blockchain blockade is “unmanaged and unorganized utilization” of the technology’s strengths, according to Sayadi.

He explained that the trustless and transparent system presents ripe business benefits in cost reduction, cutting “the middle man,” and verified data truth, and it can indeed become globally accessible, so long as it is used for “storing digital assets only.”

However, despite the emergence of smart contracts in telecom, "as soon as we want to address enterprise needs and store other types of data, such as customer data or confidential contracts, then we are touching the glass ceiling of what this technology can offer,” Sayadi argued. “Some may say that this type of confidential data can be encrypted and then stored on [block]chain. Then the question is: are the key management system[s] used to orchestrate encryption keys centralized?”

If the answer is "yes," Sayadi wonders why a peer-to-peer database structure like blockchain is even used if a central authority manipulates and organizes the “truth” of the data.

Furthermore, Sayadi pointed out blockchain faces a major challenge in that it looks to replace vital components to enterprise operations.

“Let's take supply chain as an example, which is one of the use cases for blockchain,” he explained. “Blockchain will theoretically improve the process by many factors. However, the systems in place are tested and mission-critical which are not easily replaceable. The same goes for authentication and authorization."

Even in "more blockchain-friendly solutions" such as digital wallets or private keys, Sayadi noted they "come with a single point-of-failure issue, meaning that a private key that is used to encrypt data can not be revoked to avoid further access to the data," ultimately limiting the technology's offerings in sensitive-data use cases.