A survey of the Shanghai and Shenzhen stock exchanges of 23 of the 80 listed companies that publicly claim to have incorporated the blockchain technology revealed that 13 of them, accounting for about 57%, "did not reach … results (in ) blockchain ", sina relationships.
Half of the companies that failed to keep their blockchain promises are also accused of using the term "blockchain" in promotional material purely to profit from the advertising surrounding the technology.
According to the outlet, 56 (about 70%) of the 80 "blockchain" listed companies recorded an increase in the price of their shares this year, making "blockchain" … one of the few growing sectors in the two cities ".
sina he says that the exchange regulators asked the alleged "blockchain companies" to respond to three bases of investigation:
"First, the listed company is required to disclose the specific model of the blockchain business, including application scenarios and profit models, and secondly, the listed company is required to specify the company's business performance, including talents, technical reserves, investment funds and estimated income; third, (the company was asked to settle) operational risks. "
The close inspection of reports presented by Sina reporters found:
"…" exploration & # 39; and & # 39; have become the most frequently mentioned words in listed companies, there was no question and … (all) said that the business blockchain did not have the capacity to have a substantial impact on performance ".
The Chinese stock exchanges are not the only ones to have seen stock price increases agree with the incorporation of the term "blockchain" into a company's promotional materials.
Long Island Iced Tea received a delisting notification from the NASDAQ exchange in February and was subsequently canceled after the NASDAQ discovered that the company had "misled investors" when it abruptly shifted its business from beverage production to " blockchain "and changed its name to" Long "Blockchain Corporation. "
After being removed from the Nasdaq, Long Blockchain Corporation has tried to list OTC exchanges.
For much of 2016 and 2017, "blockchain" has been widely publicized as a revolutionary technology designed to upset any industry that faces problems with data protection and management.
The technology, a type of "distributed ledger" implemented more or less successfully in bitcoins, allows data to be permanently encoded without central supervision through an automated proof-of-work number-encryption process.
Critics of the "business blockchain", including NYU's noisy economics professor Nouriel Roubini, have criticized the blockchain as "a glorified spreadsheet".
The experienced Bitcoin developers like Jimmy Song have also repeatedly warned that private companies do not need blockchain because they can not operate competitively if they throw away central surveillance.
Bitcoin was designed to avoid control or private control by a central overseer, and for this reason, most transactions are settled on thousands of database copies held by individual Bitcoin enthusiasts around the world.
This phenomenon is called "decentralization".
So far, the truly decentralized data regulation is very slow and expensive in terms of electricity.
These factors make the blockchain questionable for most private businesses, which require a quick and convenient calculation of the data and go well with a trusted attendant.
Rather than a blockchain, says Song, private companies need a type of "authorized" distributed database, augmented, perhaps, by private-key cryptography, something that says it has been available to them since the '70s.
The term "blockchain" has been enormously publicized in recent years because it has been and still is used to rationalize the release of hundreds of ICOs (initial offers of coins), many of which are classified as licenses without licenses, through various networks.