A fresh report coming from Forrester Research indicates that some firms are no longer using the term “blockchain” because they consider it to be overhyped.
This is according to a report from business magazine Fortune.
In the report called “Predictions 2019: Distributed Ledger Technology,” experts supposedly discovered that firms have began to withdraw “blockchain” in favor of “distributed ledger technology” (DLT). The study uncovered that many companies are overhyping the practicality of blockchain or making use of the name of the technology to repackage current services, a practice the report deened as “blockchain washing.”
The report also utilizes the term “blockchain washing” to point to when “networks that are live or under development vary greatly and frequently lack key characteristics that many regard as essential components of a blockchain.” The study’s proponents said that, for some, the mere mention of blockchain technology can also hold negative “wild west” implications linked with unpredictable cryptocurrencies.
The report makes some forecasts about blockchain, proposing a slowdown in the its adoption or a so called “blockchain winter,” saying that while the technology is making headway, it is still a “cautious progress:”
“On the tools and services side, we’ll witness steady but cautious progress. ‘Cautious’ because DLT hasn’t proven to be a significant, reliable revenue stream for software and service providers, and 2019 won’t be any different.”
Marsha Bennett, a Forrester analyst and co-author of the said report, cited that blockchain needs a particular level of cooperation, which is not needed with other technologies:
“There are parallels with the Internet but what’s different is that, with the Internet, a single company like Amazon or eBay can aspire to do something and create a big change. Blockchain is different because if one company says ‘I’m going to do something,’ it doesn’t matter. This is an ecosystem play.”
The researchers also project that blockchain technology would be mainly used for the tokenization of assets, i.e. tokenization which does not involve cryptocurrency.
Some firms have indeed capitalized on the hype around blockchain. While some launched their own Initial Coin Offerings (ICOs), others just added the word “blockchain” to their name and achieved success. One example is former beverage production company Long Blockchain Corp.
The firm hopped on to the blockchain world in January 2018 by altering its name from “Long Island Iced Tea,” a development that resulted in a 500 percent rise in the company’s stock price.
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