McKinsey Consulting Firm Believes There is Little Substance Behind Blockchain Applications
According to the recognized consulting firm McKinsey & Company, there is little evidence of practical use for blockchain technology. The information was released by the company in an official blog post on January 4.
The article published by the company shows that the practical use of distributed ledger technology (DLT) is still limited.
The company wrote about this:
“Blockchain has yet to become the game-changer some expected […] given the amount of money and time spent, […] little of substance has been achieved.”
According to the research conducted by this firm, the results have proven to be limited due to the fact that the technology is just starting and it is at a very early stage. Following the life-cycle hypothesis, products evolve in these four stages: pioneering, growth, maturity and decline.
The first stage shows hat the technology is just starting and being developed. However, the next step is related to a growing market that shows an increased demand for this product and also companies improve them. However, the authors of the article believe that blockchain will no reach the second stage.
As per the report, DLT can be applied in some niche cases. At the same time, the authors explain that blockchain technology would allow shifting ownership from corporations to consumers.
MERL Tech published a report in which they did not find any evidence that companies launching blockchain products delivered any sort of functional service to the market. Of 43 different blockchain startups, none of them was able to publish an update of the development of these blockchain platforms.
Although the technology has yet to evolve, there are several firms that are using DLT for improving their products and services. For example, Carrefour, Walmart and JD.com are using blockchain in order to track food that they sell to their customers at their stores.