There’s very little evidence that points to a practical use for nascent technology blockchain, asserts financial consulting firm McKinsey & Company in an official post that was released just recently.
McKinsey was established in 1926 and holds a reported revenue for 2018 of more than $10 billion, with over 27,000 employees employed across the world.
The article, which was penned by three McKinsey partners, claimed that the “evidence for a practical scalable use for blockchain is thin on the ground,” saying:
“Blockchain has yet to become the game-changer some expected […] given the amount of money and time spent, […] little of substance has been achieved.”
Additionally, the post said that “the stuttering blockchain development path is not entirely surprising [since] it is an infant technology that is relatively unstable, expensive, and complex.”
The post then goes on to tell readers that according to the life-cycle hypothesis, the evolution of any product can be separated into four different stages: pioneering, growth, maturity, and decline.
During the pioneering stage, the technology is at its preliminary point, and during the second stage, the product should essentially see success. However, the article’s authors claim that “for many, [blockchain’s] stage 2 isn’t happening.”
The post suggests that according to Occam’s razor — the problem-solving principle which asserts that the simplest solutions also tend to be the best ones — “blockchain’s payments use cases may be the wrong answer.”
As it is, McKinsey recommended that blockchain has real-world value in niche applications, modernization and as means to show the ability to innovate. The post also writes that blockchain “brings benefits where it shifts ownership from corporations to consumers.”
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