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Companies that abandon the term "Blockchain" because of Hype

Cryptocurrency, BlockchainIt seems that the bear market in progress in 2018 is finally impacting companies that once tried to capitalize on the "blockchain" button order.

November 6th, luck published an article that describes a report by Forrester Research, claiming that the term "blockchain" has become so saturated and stigmatized that companies are not moving away from using it in relation to their technological development and promotional materials. While a year ago, companies were rushing to label themselves with blockchains or indicating that they had found a way to integrate popular technology into otherwise trivial processes, the depressing cryptocurrency market of 2018 led investors to be desensitized to development. In place of Blockchain, companies are turning to the trendy "distributed ledger" technology, with the writing of Fortune,

According to Forrester, companies are abandoning the b-word in favor of "DLT", which is a shortcut for distributed ledger technology, a more descriptive, though less engaging, term. "

In addition, the report states that companies fear the "wild west connotations" associated with cryptocurrency, suggesting that labeling their brand or product with blockchain will also indicate a similar tilt to price depression. With the encrypted markets approaching the last month of a year that was mostly disappointing for investors, companies fear that any association with cryptocurrency, including through the central blockchain technology, will have a negative impact on their brand, a huge turning point from the last years. grasp to integrate blockchain in the marketing of technology companies.

The most ridiculous example came in the form of Long Island Iced Tea Corp. beverage company shamelessly changing his name at Long Blockchain Corp. in an attempt to capitalize on the December encryption boom. The name change, in addition to the conversion of the companies from the investment in the mining sector of Bitcoin, seemed to produce huge returns in the short term, while investors were crowded to buy a new product "blockchain". However, with the subsequent decline in prices of Bitcoin, the move proved to be disastrous for the company and culminated in the Nasdaq stock market which sold off Long Blockchain Corp. in April due to the low market capitalization.

While the report reproaches the companies that are only tangentially linked to the blockchain adopting the name, reports a cautious but optimistic vision for the development of distributed ledger technology,

"Networks that are live or under development vary widely and often lack key features that many consider essential components of a blockchain … As for 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. "

The report goes on to predict that innovation in the blockchain field will be largely driven by the tokenisation of activities, a future that some have pointed to as inevitable following the increase in initial coin offerings and the possibility of creating blockchains independently. from volatile cryptocurrencies. Forrester Research continues to give an example of tokenisation in real estate, a process that is gaining momentum for the use of blockchains without openly creating new currencies.

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