Blockchain has been experimented and then praised since its birth. It has been considered as revolutionary technology capable of providing numerous use cases. That’s why this industry has seen a sea of fundings and attracted the focus of big companies and giant retailers. While there are many who find blockchain valuable and prospective, there are many hold different views about it.
Recently, a management consulting firm, McKinsey & Company explained its stance against blockchain by claiming that the technology on the rise had very few use cases. The official post by the company suggests that blockchain is stuck at the initial stage of evolution of the industry. It was suggested that due to numerous other technologies such as SWIFT’s global payments innovation initiative (GPI), blockchain has faced severe challenges in administering itself as an ideal choice for payments.
The post further elaborated that initial development by blockchain occurred in the financial sector. As financial services opened opportunities for insurers, automakers, people in the public sector, bankers and many others, companies accommodated blockchain experts and initiated blockchain labs. Consequently, blockchain startups and workplaces started developing in the initial phase and blockchain was thought to be strengthening itself for the future.
By the end of 2017, the post explains that people’s perception and strategy regarding blockchain got changed. Doubts were raised regarding the technology and companies redefined their strategies by decreasing and narrowing the use cases. Apart from the happenings of the past, blockchain’s future was also talked about in the post. For 2019, the post suggests that niche applications, modernization value and reputational value are the areas for blockchain to look in to for restoring its value.
The post concluded that blockchain is held as a questionable solution with limited scaled use cases. Moreover, the security issues associated with it adds up to downvoting the technology. A quantum computer made by Google was mentioned as another problem for blockchain. As the computer is said to work with extremely high speed, it is expected to have the potential of hacking codes used by cryptocurrencies.
Besides this, few principles thought as mandatory for blockchain to progress in the second stage were laid. The existence of a real problem, the presence of a clear business case and target ROI and a strong commitment to the blockchain adoption for a use case were the prerequisites highlighted for blockchain to move in the forward direction.
Finally, it was summed up that blockchain had the tendency to revolutionize processes but it hasn’t yet done so. Blockchain has taken minds of many influentials and pleased them but to become more applicable than now, a hard-headed commercial approach and expeditious withdrawal of technology are advised whenever there is no true value involved in a blockchain solution.