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Going through the blockchain hype

Despite having pockets of adoption, blockchain technology is still in its infancy, with a consolidation in the supplier market that should occur in the coming years, according to an expert in the field.

Speaking with Computer Weekly in an exclusive interview, Tom Sprenger, CTO of AdNovum, a Swiss IT security company with offices in Asia, noted that many startups and investors are jumping on the blockchain bandwagon, but it is not always clear whether the use of technology is really necessary.

the three main classes of blockchain applications – cryptocurrencies, cases of transactional use as smart contracts and business functions such as logistics – Sprenger noted that cryptocurrencies are overvalued, volatile and have no real value behind them.

Sprenger said that transactional applications could make sense, but we still need to show that blockchain is the right technology to use.

"If you look at all the concept tests and innovation projects on blockchain, you have to be really critical and ask if the blockchain is really necessary," he said.

"My hypothesis is that in half of these projects, blockchain is used because it is easy to get money, not because there is an added value."

When asked about the problems that led to the current situation, Sprenger has identified three main areas. First, he said that although blockchain technology is developing rapidly, many projects struggle to ensure stability in large-scale deployments.

"For example, if you use smart contracts, you can not replace them as a normal code," he said. "So you have to think about how to apply a large-scale intelligent contract manufacturing block block.

" And if you do a blockchain in your datacenter along with your core systems, the network security level is not untouched, so c & # 39; it's a lot of work

Sprenger has also highlighted the challenges in motivating companies – and their rivals – to join a blockchain network, which often translates into the democratization of information.

"Now, this is very appealing to small businesses because they have a chance to get together to beat bigger companies," he said. "But not so much for market leaders, without whom the blockchain ecosystem will not spin fast enough."

Sprenger also touched on the safety of blockchain systems deemed to be secure with regard to the immutability of information. However, he said that the notion would not apply to data privacy and access management.

Citing AdNovum's Car Dossier project, which uses blockchain as a technology base to build trust and drive value in the used and used car industry in Switzerland, Sprenger said that details such as the position of a & Car that was involved in an accident could be caught on a blockchain.

"So you have information about the position and you know who owns the machine at some point in time – this is very sensitive information, at least in Switzerland," he said. "Data privacy is a major concern and has not yet been resolved by blockchain frameworks in the market – and that's where we enter as a security company to provide access management functionality."

According to the market research firm Netscribes, the global blockchain The technology market is expected to grow at a compound annual growth rate of 42.8% and worth nearly $ 14 billion by 2022. The region is expected to Asia-Pacific adopts this technology at a faster pace due to its widespread adoption in China and India [19659016] Source link