The task of running a blockchain incubator is not for the feint of heart.
This type of program invites a great deal of initiative and creativity to bring this form of modern technology to the public sphere.
Yet a project that attempts to disrupt the current banking infrastructure and influence how we utilize transactional data will come across some clear and obvious hurdles along the way.
They will be a combination of internal and external struggles, leading managers to question how they go about their operation without having to close their doors altogether.
Energy Consumption Factor
A blockchain incubator will be an environment that places a great deal of stress on the energy source that is being utilised. The technology requires assistance from something known as proof-of-work (PoW), a computer compartment that allows programmers to reach a consensus about their algorithm working correctly. Bitcoin would encounter this issue during their early development phase, seeing miners accumulate heavy quantities of energy to crosscheck that their methods are correct. Whilst there are alternatives to PoW that can alleviate this issue, any incubator that is running off this practice will need to find large sources of energy to continue to run.
Privacy Concerns and Hacks
The greatest strength of this technology also happens to be its greatest weakness. Once a blockchain goes public then the information is open to any user on the web. This is an issue for a blockchain incubator who have simultaneous models in circulation, all being crafted from the single domain source. The vulnerability of this environment cannot be understated because the centralised programming makes it a prime target for hacking and privacy violations. Managers must create a space where there are tight safeguards in place, switching accounts and passwords with computing systems that are designed to ward off intruders.
Unknown Third Parties/Criminal Element
Entrepreneurs who offer programmers into their doors for a blockchain incubator can often do so without a background check. The technology has been linked with dubious operators from criminal backgrounds before, seeing this technology as a means of bypassing rules and regulations around banking and transactions. The profile of these individuals should be transparent and their motivations should be pure as well.
Attracting Users from Suburban/Rural Communities
There is an inherent bias when it comes to the creation of a blockchain incubator and this is not an issue that is easily solved one way or the other. Almost every program of this nature has to be run from a major city, from Sydney to Melbourne or Perth to Brisbane. This is to attract university graduates and individuals from the biggest population pools. Yet there are talents based in suburban and rural communities who would add value and become an asset to these teams, but their proximity away from these environments makes the logistical challenge near on impossible.
The final logistical challenge of running a blockchain incubator is to have an ongoing program that is financially viable in the long-term. This is an issue that every start-up must face because even if the initial idea is born from the sale of some equity, that can only sustain for so long. Often in these environments there are fees and charges necessary from the clients to sustain the initiative, or the injection of funds from a wealthy benefactor who will aim to profit from the technology and take a percentage of the invention moving forward.
These logistical challenges that surround a blockchain incubator are not intended to dissuade entrepreneurs from opening their doors and setting forth a progressive program. To the contrary, it is important that owners and managers identify issues at the earliest possible phase and instigate fail-safe measures to prevent these stumbling blocks from hampering the innovation.