Ernst And Young’s Paul Brody Thinks Crypto Prices Bear Market Hasn’t Slowed Blockchain Progress
Paul Brody Of EY Thinks That The Recent Bear Market Has Not Stopped The Progress Of Blockchain
Paul Brody has been in the blockchain practice for about five years now. He was part of building the first blockchain with IBM. “We’re not just in the early days anymore,” he says. Brody is currently responsible for driving Ernst and Young’s (EY's) initiatives and investments in blockchain technology across consulting, audit, and tax business lines.
In his recent article in Coindesk, Brody elaborated on how the falling crypto prices have not hindered the adoption of blockchain technology. He begins by criticizing the fact that the marketplace drama of fluctuating prices and the attention that the media has given to it has hidden the fact that there has been enormous progress in the technology.
ICOs did not fare too well, nearly two-thirds of ICOs from 2017 lost all of its value and only 5% of 2018 ICOs were able to raise more than a million dollars. This has given rise to a new phenomenon in the crypto sector. The centralization of projects. This is because only big centralized projects were able to withstand the losses sustained by the year-long bear market.
Noticeably, if you track all the progress of ICOs of the year, more than 95% of it as accounted by dominant platforms. KYC procedures became more prominent as projects had to give in to the tightening regulations.
The exchanges also had the same store. Upwards of 73% of the daily transactions were by top 10 platforms. These exchanges tightened their securities and that led to most traders migrating to centralized platforms.
Another notale trend was stalecoins. They were the least susceptible by the volatility and bear markets and proved to be a good investment(comparatively).
Although public blockchains showed promise, real work was done by private ones as they showed their real market value. Companies like Microsoft, Goldman Sachs, IBM and much more stepped up their game in this sector.
What Can We Learn From The Blockchain Ecosystem Of 2018?
- If it ain't broken, don’t fix it: This is a golden rule, not only in blockchain but across every business. Enterprises that were doing well did not seem to pivot or experiment with the nascent technology.
- Solve a problem: One can’t expect to implement blockchain solutions just for the fun of it. If the new implementation solves a problem, or makes the product better, the Chief Innovation Officers should be interested in it. The trend currently seems to be people focusing too much on concepts.
- Prioritize operations over finance: According to Brody, this is the biggest lesson to be learnt. Blockchain solves a lot of operational problems but companies seem to be fixated on the financial solutions it provides, whether they need it or not.