As a fallout of the word “blockchain” being overused and attracting plenty of attention, many companies are shying away from using it. This is according to a new report by Forrester Research, an American market research company.
The report says: “The networks that are live or under development vary greatly and frequently lack key characteristics that many regard as essential components of a blockchain.”
Also, the word has been tainted because of their association with cryptocurrencies during its “wild west” period.
There are other reasons too. Many inept entities are using the term blockchain for marketing purposes. They overstate the importance of blockchain and use it for something called “blockchain watching. ”
According to the report, “blockchain watching refers to networks that are live or under development vary greatly and frequently lack key characteristics that many regards as essential components of a blockchain.”
Rather firms prefer using the term Distributed Ledger Technology or simply DLT.
The report goes on to predict that the blockchain ecosystem is going to witness something called “blockchain winter,” which suggests an extended period in the foreseeable future when the adoption of the technology will be slowed down. This is because of the market being cautious about the technology.
“On the tools and services side, we’ll witness steady but cautious progress. ‘Cautious’ because DLT hasn’t proven to be a significant, reliable revenue stream for software and service providers, and 2019 won’t be any different.”
The co-author of the report, Martha Bennett, stated that using blockchain requires a cooperation at a higher level than other companies.
“There are parallels with the Internet but what’s different is that, with the Internet, a single company like Amazon or eBay can aspire to do something and create a big change. Blockchain is different because if one company says ‘I’m going to do something,’ it doesn’t matter. This is an ecosystem play.”
Additionally, the report says that innovation in the domain of blockchain will be catalyzed by tokenization of assets. Many companies have already tokenized their products and services through ICOs.