Blockchain is struggling to get a pioneering past, says McKinsey and Company


World-renowned consulting company McKinsey published an article which describes the blockchain industry like not having met his expectations or "having struggled to emerge from his pioneering stage".

Entitled "Blockchain & # 39; s Ocean Problem"The article examines the applicability of blockchain in several use cases, particularly in financial applications, stating that the blockchain should only be used when it is the simplest solution available.

The article reads:

… a little bit of substance has been reached. Among the many cases of use, a large number is still in the idea phase, while others are under development but without output. The bottom line is that despite billions of dollars of investment … the evidence for a practical and scalable use of the blockchain is subtle on the ground.

The authors apply the theory of the economic life cycle to industry, stating that the blockchain is still at the stage when the return on investment is negative.

According to them, many applications remain in the Proof-of-Concept phase and improvements from competing technologies – such as SWIFT, which Ripple is seen as an answer to – they are making blockchain less of a stellar solution than initially seemed to be.

Given the range of alternative payment solutions and incumbents' disincentives to investment, the question is not whether blockchain technology can provide an alternative, but what if necessary? Occam's razor is the principle of problem solving that the simplest solution tends to be the best. On this basis, the cases of use of blockchain could be the wrong answer.

FinTech in general is really a fast growing and attractive field that it is receive more attentionif not with the same blockchain pump.

The infancy of Blockchain is undeniable, but so is the potential for application

While blockchain really has many obstacles to overcome, not the least of which is his technical skills, tThe argument that blockchain may not be the easiest solution also requires further qualification.

From a perspective, there is nothing simpler than being able to make direct transactions with anyone in the world without relying on an intermediary service. Looming entities may actually lose some of their revenue from emerging technology, but a lack of adoption of what could clearly be a better system would do much more harm.

Furthermore, the proof of the the practicality and usability of blockchain platforms is growing day by day. With technology maturing and reasonable regulation, this can only grow, and perhaps established entities will see that blockchain can greatly improve speed, efficiency and customer satisfaction.

McKinsey recognizes that blockchain is remarkable potential in many other sectors, as the supply chain, insurance and health care.

Namechecking Cardano, the report states that incremental addition of value as technology grows is the key to investing:

Companies wishing to pursue the blockchain need to adapt their strategic gambling books, honestly review the benefits over more conventional solutions and adopt a harder business approach. They should be ready to abandon applications where there is no incremental value … If they can do all this and be patient, the blockchain can still emerge as the right answer from Occam.

Time and effort will show the ability of the blockchain to simplify financial transactions, while at the same time increasing the activity in other cases of use.

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