Consulting giant McKinsey & Co recently released a report on the state of the blockchain industry. The report said that while crypto technology has potential, it has not yet been able to break away from the early “pioneer” phase. There are very few successful applications.
The report: “Blockchain has an Occam problem”
The report is not entirely critical and indicates that blockchain is seen as a potential innovation driver in many industries. However, it should be noted that a lot of money has been pumped into blockchain projects and only “little substance” has been created.The consulting firm says the blockchain technology is still in its infancy, unstable, expensive and complex. It is also not regulated and gives partial distrust. The report contains a graphic showing how difficult the industry is to grow out of its infancy.
The report details emerging doubts about crypto technology, with the title of the report referring to Occam's Razor. This is a concept that says the simplest answer or solution is best. The implication here is, of course, that blockchain technology is not the simplest solution.
Crypto Companies Respond to McKinsey
Most who read this review will get a negative opinion about Blockchain technologies. McKinsey's report is not an absolute rejection of blockchain technology. But it certainly aims to drastically mitigate the expectations of blockchain advocates who support technology as a solution to many cross-industry issues.
Blockchain companies have not kept silent about the report. Several CEOs of crypto companies have addressed and counter-argued several points.
CEO Angel Versetti of blockchain supply chain tracking company Ambrosus confirmed that the blockchain hype had clouded expectations. However, he firmly states that blockchain is by far the best solution in its application:
“The report claims that emerging new technologies are hampering Blockchain's progress. However, I believe that there is no technology that really competes with Blockchain for its core promise: a censorship-resistant, universally trusted database of transactions and contracts with no central point of failure, “said Versetti.
Blockchain does not solve all the problems of the world. But in the core value of data integrity and immutability, Blockchain is undoubtedly the king.
Utopia Music CEO Brent Jaciow shared a solution-oriented view, pointing out that blockchain technology is still an emerging industry.
Developers must work hard to remove any obstacles to using the blockchain. This can be achieved by creating APIs that integrate with existing solutions. Or just develop a user experience that is simple and easy to use, and uses blockchain technology as the backend software.
Is Blockchain the future?
The McKinsey report contains a number of regulatory, scaling, and security concerns that, of course, have played a major role in all its criticisms of blockchain technology.
Blockchain's reactions to the report appear to address its concerns with proposals for API and UI development. Also, the argument is important that Blockchain trumps the competition technologies in terms of immutability and privacy. But it may be too early to say that the crypto industry is now in its infancy and is entering the growth cycle.
However, the report reads more like a stern lecture by a well-intentioned parent than a smear campaign of competing interests. Although McKinsey is in some cases extremely critical, the company says the blockchain may be revolutionary. Three guiding principles are cited:
- Organizations must start with a problem.
- There must be a clear use case and ROI.
- Businesses need to commit to adoption.
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/mckinsey-report-views-blockchain-and-bitcoin-critical-crypto-company-replies/
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