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A search by Forrester has shown that companies have begun to give up the term "blockchain", which they believe is overwritten due to the buzz around it and seems less descriptive than DLP (distributed ledger technology), according to a Fortune relationship
The research found that some companies have excessively promoted the term "blockchain", while others have constantly used it to repack existing service offerings, a practice known as "blockchain washing"
Blockchain washing
There has been an increasing pressure from regulators to curb the trend of companies that profit from the perceived value of adding the term "blockchain" to their securities without interacting with technology or sticking to best practices in doing so. In 2018, based in New York Long Island Cold tea has seen a 200% peak in stock price, after having changed its name to Long Blockchain Corp.
To curb this trend, the president of the Securities and Exchange Commission (SEC) of the United States, Jay Clayton suggested at an event in January 2018, companies that added the term "Blockchain" in their name could be subjected to more thorough scrutiny by regulators. At the time, he had stated that the regulator was "looking closely at the disclosures of public companies that shift their business models to exploit the perceived promise of distributed ledger technology and whether disclosures are compliant with securities laws, in particular in the case of an offer. "
Further defining the "blockchain washing", the authors of the report describe it as a situation in which live networks or those "under development vary a lot and often lack key features that many consider essential components of a blockchain".
Slower adoption
However, Forrester's research is not optimistic for the blockchain industry as a whole, as it provides for a slower adoption, which defines a "winter blockchain", adding that as technology continues to advance, we should expect a constant but "cautious progress", especially on the "side of tools and services". The authors of the research went further:
"Cautious because DLT has not proven to be a significant and reliable revenue stream for software and service providers and 2019 will not be different."
Revolutionary technologies go through a period of unrealistic publicity before becoming mainstream, but Forrester begs to disagree on the blockchain.
The Forrester analyst and co-author of the Martha Bennett report used narrative, explaining that the blockchain differs in this sense, as it requires a level of cooperation between different groups, which is often absent in other technologies.
"There are parallels with the Internet, but what is different is that with the Internet, a single company like Amazon or eBay can aspire to do something and make a big change." The blockchain is different because if a company says "I will do something, not it matters. This is an ecosystem game. "
Blockchain could end up being used for the tokenisation of resources, in the future, research provides. Tokenization, the method that converts rights to a resource in digital tokens has begun to gain ground. The tokenisation of assets will provide asset owners with greater liquidity, faster liquidity, better compliance checks and many more.
Any property can be tokenised, from intangible assets such as patents, to fungible goods such as goods and non-fungible goods, such as art and real estate. The industry has witnessed more cases of use for non-fungible products, particularly in properties.
Read: Tokenization of financial assets
Alt.Estate is Blocksquare they are two blockchain startups that are deeply invested in the tokenisation of commercial and residential properties. A luxury condominium in Manhattan offered tokenized shares of the property on the Ethereum blockchain worth $ 30 million, providing interested investors with the fractional ownership of the property, which can be sold at higher prices based on its future value.
