Blockchain, once hailed as a panacea for corporate issues, is facing a slowdown. The technology, originally designed for Bitcoin, is not living up to its hype. Despite promises of increased efficiency and reduced costs, firms are finding blockchain’s application in business operations challenging.
Many projects have been abandoned due to the complexity of the technology and the lack of standardisation. In addition, regulatory hurdles and the reluctance of potential users to change their existing systems are slowing down blockchain’s adoption.
A survey of 600 executives conducted by Gartner Inc. revealed that 1% have adopted blockchain and 8% are in short-term planning or active experimentation with the technology. This is a stark contrast to the 43% who reported that blockchain is on their radar but they have no plans to test or develop it.
Despite the slowdown, some companies remain hopeful. IBM, one of the leading firms in the field, believes that the technology’s potential is still untapped. They argue that like any new technology, blockchain will take time to mature and its true value will only be realised in the long run.
In the meantime, the industry is shifting its focus from grandiose promises to realistic applications of blockchain. The technology’s potential is yet to be fully explored and exploited, and the slowdown may be a necessary phase in its development.
Go to source article: https://www.bloomberg.com/news/articles/2018-07-31/blockchain-once-seen-as-a-corporate-cure-all-suffers-slowdown