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Since the emergence of blockchain technology, many companies have been looking for ways to benefit from the blockchain franchise. This is the reason why the number of startup blockchain has increased dramatically in recent years. Almost all companies want to be associated with the blockchain industry in an attempt to benefit from the frenzy. The supporters of Blockchain believe that the blockchain will change the world for the better. However, not all blockchain startups have been able to deliver on their promise and deliver products that will have a disruptive effect on the way the world works.
43 Startup Blockchain still have to deliver the products
Statistics have shown that 43 high-profile blockchain startups who have submitted white papers and raised funds for their products have yet to deliver on their promises. Most of these startups have not even come up with excuses to justify what has not been able to provide a functioning product. A technology research company that monitors upcoming trends, MERL Tech, has reported that blockchain startups make big promises but fail to deliver.
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Published on Thursday, MERL Tech's research showed that most of the white papers presented by these startups are too good to be true, making it impossible for these companies to keep their promises. The 43 startups presented in the report have not yet provided any functional service or product. Furthermore, they did not provide any updates on the projects they are working on. When MERL Tech tried to reach these companies, they did not receive any response.
Blockchain technology and startup
As you know, blockchain technology is a distributed database that provides the kind of transparency that no other technology can provide at this time. It does this by redistributing power. With Blockchain technology, all the parties involved in a transaction will have a copy of everything that happens on the blockchain. There will be no central authority on the blockchain but it will maintain recordings of immutable transactions.
While there are many instances of the use of blockchain technology, not everyone believes that it serves its purpose. Most of the time, the word is considered a word of order that startups use to attract investors. This is the reason why many of these companies have not kept their promises.
Although these 43 startups have not yet produced a functioning product, it would be unfair to judge the industry based on their actions. They do not exactly represent the whole industry. MERL Tech may have investigated only a few companies that are not ready to keep their promises. There are still many blockchain startups that have produced products or services that add value to users.
Nevertheless, this research should be a warning for anyone investing in startup blockchain. Before rushing to invest, be sure to find out if the company is able to keep its promises. Find out if promises on the white paper are feasible or not. Be sure to determine how far your money will go before investing. If something seems too good to be true, it probably is.
