Scalability - An Issue of Mainstream Blockchain in the Insurance Industry

The article is the outcome of a study the authors undertook to find out answers to the scalability issue faced in adoption of Blockchain technology in the insurance industry and on the prevalent concerns of experts in deploying this technology on large scale.In this article, we have captured the experience of industry experts by speaking to them and focused on how Blockchain becomes a concern in the insurance industry when peer’s network reaches close to their maximum capacity.The main findings of the study are that the insurance penetration in India which is about 3.76 percent at present and is growing in size with time is increasing the level of users. The magnitude of increase in users and transactions poses challenges in Blockchain technology adoption. To streamline the process each node must be operating on a network where there is sync in processing power from all the parties. If a network exceeds its maximum capacity than the average amount of transaction decreases and affects the business.The recommendations which emerge are that Blockchain cannot be scaled alone by increasing the block size or decreasing the block time by reducing the hash complexity as is practiced by many organizations now.Peer groups are dependent on each other for capacity limits and they must plan to evolve the infrastructure of the deprived peer by either investing in them or by providing leveled infrastructure