We tried to identify a number of problems that impede the introduction of this revolutionary technology into real areas of human activity.
The potential of the blockchain is undeniable. Even a quick glance at the essence of the technology will allow you to define a variety of ideas that can be optimized with such a solution.
Of course, the economy comes first, since it is easy to establish a link between cryptocurrencies and the financial sector. Nevertheless, there are a number of areas where innovative technology will become an indispensable component – the supply chain, turnover, monitoring the quality index of medicines and even environmental problems.
However, despite all the charms, the blockchain cannot go beyond theoretical projects and begin to be used everywhere in real life …
As the capitalization of the cryptocurrency market continued to grow, so did the interest in the technologies underlying the industry. One of the main signals for the growth of courses was the massive investment of venture capitalists in the blockchain since institutional investors understood that this technology has significant potential.
Venture financing of blockchain startups reached $ 1 billion in 2017. IBM has invested more than $ 200 million in a data exchange solution using the blockchain for the Internet of things, and Google has been working with technology since 2016. Last year, the financial industry spent about $ 1.7 billion on experiments in this industry.
However, after initial admiration for the blockchain, a less “pink” look at technology appeared. The speed of implementation of such a solution in a person’s life is noticeably inferior to similar indicators of previous global innovations – for example, the Internet, which literally a decade after its appearance has become an integral part of the life of almost every person on the planet.
We identified a number of problems hindering the introduction of this revolutionary technology.
The first is the lack of real products, despite continuous media coverage and large investments. With a high degree of probability, this trend has developed due to the slow development of blockchain solutions that are in the process of development right now.
In addition, blockchains are “drowned” by such factors as the ICO financing model with all sorts of manipulations and unscrupulous issuers in some cases, as well as unimaginable speculations in the cryptocurrency market.
Another potential cause of slow development is the growing number of competing developments. Blockchain maximalists are accustomed to presenting technology as the main and final solution for a number of operational flaws. However, the reality is that in some industries there are technologies that can compete with the blockchain. This is especially evident in the economic sector.
In addition, many financial institutions are wary of using this technology, as it can reduce or completely eliminate significant portions of existing income streams.
We see that finance is supposedly the most obvious use of the blockchain, however, so far there is no enthusiasm on the part of the representatives of this field for the large-scale use of innovative technology.
If not finance, then what?
There is a new perspective, which is that the use of the blockchain can be most valuable when it democratizes access to data, provides collaboration and eliminates certain risks when multi-party cooperation.
If we followed blockchain-based products that actually go beyond theory, these are the industries where the technology would be most applicable.
Experiments on supply chain management, digital identification, and the sharing of public records were the most successful. Perhaps in these situations, blockchain-based approaches are the easiest solution.