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The hype blockchain is described as "dead", according to a source. After months of prices have fallen among the biggest cryptocurrencies out there, the cryptic world is finally about to stop, but is it safe to say that all the commotion has closed permanently?
One of the most recent topics treated by Live Bitcoin News it was ConsenSys. Started in 2014 by the co-founder of Ethereum, Joseph Lubin, the crypt executive explained that the company had no good results because of the continuous encrypted winter, even though in the same interview he mentioned that he was not particularly worried about the situation.
A Blockchain company is suffering deeply
What has not been mentioned is that RecenSys has fired about 13 percent of its workforce, and Lubin is financing the company's operations largely from its private crypt. Lubin is said to have the largest amount of ether tokens among industry leaders. Previously, ConsenSys had about 1,200 employees, which means that around 150 of these are now out of work.
One of the biggest problems – according to the recent source – states that ConsenSys spent more than $ 100 million annually to fund new blockchain and crypto-related startups and venture funds. Thanks in part to the incident that caused the loss of over 80% of its values by entities such as Bitcoin, Ethereum and EOS, many of these startups have become nil in the ever-increasing financial scale.
Many of these initiatives have also raised funds through the first coin offerings (ICO), obtaining ether tokens in exchange for access to their goods and services. With the sudden decline of ether, these companies no longer have the backbones needed to compete. This also means that if ConsenSys helped finance these companies, the representatives are likely to be lost.
One of the other big problems, however, does not refer to the drops in crypto prices, but rather to the fact that blockchain technology still lacks what the source calls a "killer app". Currently, blockchain offers many advantages, although very few have been applied appropriately to real-world problems that have little or nothing to do with finance.
The Blockchain must work out finance
A similar app in this space could potentially bring new mainstream attention and legitimacy to blockchain technology. In addition, it could also help companies in space to collect the revenue and capital they need to stay competitive with high-end players. Currently, however, the only applications that seem to exist are for digital exchanges.
The source compares the blockchain with the internet and states that this last became effective only when entrepreneurs and professionals in the sector realized how to use it to solve the real needs of customers. Blockchain will have to experience a similar transition for entrepreneurs – not data scientists – if it will always succeed and profit in a more traditional sense.
Will the blockchain ever become the basic technology of the globe? Post your comments below.
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