Blockchain manufacturers spend billions of dollars to solve a non-existent problem
Blockchain is often a solution in search of a problem, but there is no need to maintain this state of Affairs, writes columnist Matt Asey on the TechRepublic portal.
The main evidence that blockchain is not ready for widespread adoption is the amount of money spent by manufacturers trying to figure out why everyone should use this technology. As stated in a recent Reuters article, “companies, including banks, major stores and hardware manufacturers are spending billions of dollars to find a blockchain application.” If you have to pay billions just to find arguments in favor of using this technology, and not for creating solutions to real problems of customers, the case is doomed to failure.
Everything started so well… And really?
Blockchain emerged as a way to protect bitcoin transactions. This technology never worked as it was claimed in the advertisement. Bitcoin and its offspring have received their share of fraudulent transactions. Over the past year, more than $ 1 billion worth of cryptocurrencies have been stolen. However, manufacturers have entered this game. Google searches the block chain. IBM bought a luxury building to sell its solutions. But if you look at the profitability of the blockchain over the past few years, it turns out that this technology does not pay the bills.
Not one Blue giant gets a small return on investment in the blockchain. Reuters was introduced to 33 blockchain projects announced in recent years and found that about a third of them were stuck in the testing phase and none of them were widespread. All of them remain scientific projects. And very expensive.
The launch of the projects took place under the sounds of fanfare, and now experts call them “shining Mirage”, “transformation, not the big Bang” and “journey”, which will give the result in three to seven years. It is unclear what will change in the coming years, given that for several years nothing has happened. But hope dies last.
A solution in search of a problem
Hopefully, manufacturers will spend a little more time communicating with customers to find out what real problems need to be solved. As stated by Reuters, unit Manager market technology NASDAQ Lars Ostergard, “the benefits of the use of the blockchain instead of the traditional technology is not obvious.” Or, as true Link Financial CEO Kai Stinchcomb wrote in 2017, “in ten years, no one has figured out how to use blockchain.”
This is an exaggeration, but probably a small one. Blockchain enthusiasts will have to take to heart the decision taken by AWS in 2018 to launch a managed blockchain service. AWS does a lot because of its “obsession with customer interests,” and it appears that this obsession is real. But it is significant that at the same time AWS announced the Amazon Quantum Ledger Database, which provides the most important functions of the blockchain, without the need for a distributed consensus. In other words, it is not a real blockchain. But this is probably fine for real businesses with their real problems, for which they pay real money.
Ultimately, the winners will be those manufacturers who pay great attention to today’s customer needs, not those who pay billions to solve their future problems. Future problems are hypothetical, current problems are easy to detect. You just need to talk to customers and listen to their answers. Those who do will probably spend less time developing “solutions” using blockchain and more time creating real DBMS and especially making them easier to use. When asked whether the blockchain turned out to be easier or more complicated than expected, almost 60% answered “harder”. Therefore, blockchain is hardly a recipe for success.