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.”
- Vulnerability Discovered in Constantinople Hard Fork 16 January 2019
- Belarus Introduces Trading Platform That Allows Purchase of Tokenized Securities 16 January 2019
- Repsol Says Blockchain Can Help It Save 400,000 Euro a Year 16 January 2019
- Bitcoin Price Down as Cryptocurrencies Falter Again 16 January 2019
- National Crypto of Marshall Islands to Be Launched This Year? 16 January 2019
Russia6 days ago
Russian Parliament to Tackle Digital Economy Bills in Next Session
Cryptocurrency6 days ago
Venezuela WTO Request Charges US of “Discriminatory Measures” vs. Petro
Technology6 days ago
Bitwise Files With US SEC for New Bitcoin ETF
Bitcoin6 days ago
Tobacco Shops in France Begin Selling Bitcoin Without Regulatory Say-So