McKinsey & Company, the leading consulting firm, claims that blockchain technology fails to go beyond its pioneering stage. The company notes, however, that payments may not be the best use case for a complex technology such as blockchain.
Houston, we have not taken off
The leading consulting firm McKinsey & Company has published an article on the current issues faced by blockchain technology as a whole.
The company claims that throughout 2017 and 2018 the sector has seen an inflow of investments by both venture capital companies and large companies.
In fact, blockchain-based projects have raised over $ 21 billion in 2018 according to data from CoinSchedule.
However, according to McKinsey, little progress has been made due to the publicity and the money paid into it:
The bottom line is that, despite billions of dollars in investment, and nearly as many titles, evidence for practical and scalable use of blockchain is subtle on the ground.
The consulting firm claims that as a child's technology, blockchain is still relatively complex, expensive, unstable and unregulated. In his view, the industry is currently in phase 1 of its development, when investments should bear fruit in the form of a product placed on the market.
However, McKinsey notes that the industry can not overcome that pioneering phase towards further expansion and market adoption.
One of the reasons for this, particularly for "blockchain players in the payments segment" is that technology is not really necessary as it is not the easiest solution.
Occam's razor is the principle of problem solving that the simplest solution tends to be the best. On this basis, the cases of use of blockchain could be the wrong answer
It is worth noting that this does not seem to be the position of MIT. Bitcoinist reported on a recent article by MIT Technology Review, which expects 2019 to be the year in which blockchain projects will begin to bear fruit and become "boring".
Meanwhile, McKinsey & Company, considers blockchain technology to have practical value in other areas.
Examples can be found in insurance, supply chains and capital markets, where distributed registries can address critical issues including inefficiency, process opacity and fraud.
Furthermore, the company believes that technology appeals to certain industries, which are oriented towards modernization.
In addition, the blockchain holds a reputation value or perhaps a PR value (at least for the moment) as it signals to shareholders that a company is trying to innovate.
What do you think of McKinsey & Company on blockchain technology? Do not hesitate to let us know in the comments below!
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