Companies abandon the term "blockchain" because of the clamor around technology


A new report by Forrester Research states that some companies are stopping to use the term "blockchain" because they think it has been overwritten, according to the Fortune economic magazine on 6 November.

In the report dubbed "Predictions 2019: Distributed Ledger Technology", analysts presumably discovered that companies have begun to withdraw "blockchain" in favor of "distributed ledger technology" (DLT). The study found that many companies are overwriting the use of blockchain or using the technology name to repack existing services, a practice described in the report as "blockchain washing".

The report also uses the term "blockchain washing" to refer to when "networks that are alive or in development vary greatly and often lack key features that many consider essential components of a blockchain." The researchers said that, for some, the mention blockchain technology can also bring negative "wild west" connotations associated with volatile cryptocurrencies.

The report makes some predictions about the blockchain, suggesting a slowdown in its adoption or a so-called "blockchain winter", noting that while technology is making progress, it is still a "cautious progress:"

"On the side of tools and services, we will see steady but cautious progress." 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. "

Marsha Bennett, Forrester analyst and co-author of the report, reported that the blockchain requires a specific level of cooperation, which is not required with 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 create a big change." Blockchain is different because if a company says "I will do something", not It matters, this is an ecosystem game. "

The researchers also predict that, in the near future, blockchain technology will be used primarily for the tokenisation of resources, ie tokenisation that does not involve cryptocurrency.

Some companies have really capitalized on the clamor around the blockchain. While some have launched their Initial Coin Offerings (ICO), others have just added the word "blockchain" to their name and have seen success. A salient example is the former Long Blockchain Corp. beverage production company.

The company joined the blockchain world in January 2018 changing its name from "Long Island Iced Tea", a move that resulted in a 500% increase in the company's share price in a blockchain-induced euphoria .

In January, the US Securities and Exchange Commission (SEC) suggested that US companies that change names to include the word "blockchain" could be subject to greater scrutiny by regulators. SEC President Jay Clayton said there is a growing phenomenon of society that adds the word "blockchain" to their names to "capitalize on the perceived promise" to do so.

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