McKinsey: hype around the blockchain technology is still overwhelming

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McKinsey: hype around the blockchain technology is still overwhelming
2019-01-08 in CRYPTOPEDIA

Representatives of the consulting company McKinsey note that during 2017-2018, the blockchain industry has attracted a huge number of investments from large corporations, venture capital firms and individuals. Despite this, the progress in the industry is insignificant.

In particular, according to CoinSchedule, during 2018 $ 21.4 billion was attracted to the industry through ICOs. According to McKinsey analysts, the progress achieved does not justify the amount of investments in the blockchain industry:

“As a result, despite billions of dollars in investments and about the same number of headlines in the media, evidence of practically meaningful and scalable options for using the blockchain is negligible”

The consulting firm claims that the blockchain technology is still in the early stages of development. In addition, blockchain is a relatively complex, expensive, unstable and, at the same time, unregulated technology. Moreover, for the time being, the new industry is not able to get out of this initial stage of development in order to move to growth, maturity and mass adoption.

The graph below shows in blue the point on the curve where the technology is currently located:

According to representatives of McKinsey, quite a lot of prototypes of blockchain solutions have already been created. However, so far all of them are far from mass adoption and implementation on an industrial scale. In general, the prospects for the industry, noted in the company, seem uncertain.

Among other things, McKinsey is sure that relatively difficult to implement a blockchain-based solution is not needed in all areas.

Among other things, McKinsey is sure that relatively difficult to implement a blockchain-based solution is not needed in all areas.

“Occam’s razor is such a methodological principle, which means that the best is usually the simplest solution. Based on this, the use cases with payments on the blockchain may turn out to be unjustified. ”

Nevertheless, McKinsey is confident that there are industries in which the blockchain could recommend itself well. Technology-driven companies can innovate.

“Examples include such areas as insurance, supply chains, capital markets, where distributed registries can solve problems of inefficiency, fraud and help improve the transparency of processes”

The fact of the introduction of the blockchain, the researchers believe, is always a positive signal for their shareholders, who hints that the company is committed to innovation.

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