A while ago, smartereum.com posted about a report that was published by McKinsey & Co about the blockchain industry. According to the report, there are few use cases of blockchain technology even if cryptocurrencies have potential. The report stated that the technology has been unable to move passed the early pioneer phase. The title of the report was ‘Blockchain’s Occam Problem’.
While the report isn’t entirely critical, it noted that the billions pumped into the industry isn’t equivalent to the progress that has been made so far. Many companies have been unable to come up with the projects they described in their whitepaper. The paper stated that blockchain technology is unstable, unregulated, selectively distrusted, complex and expensive until now, it hasn’t been able to move to the second out of the four-stage moving cycle of development of every technology.
At a glance, a person who doesn’t know much about the cryptocurrency industry will not be encouraged to learn more or get involved after reading this report. The report also tampers the mindset of all blockchain enthusiasts. Blockchain firms didn’t remain silent after the report was published. Many executives have stepped forward to debunk some of the points cited in the report.
First of all, the CEO of the blockchain tracking firm Ambrosus, Angel Versetti, said that the hype around blockchain technology played a role in clouding expectations. Versetti, however, pointed out that blockchain technology still provides the best solutions so far. The CEO said:
“The McKinsey report stated that other competing technologies are preventing the growth of blockchain technology. However, I don’t think there is any emerging technology that can beat blockchain per its censorship-resistant, decentralized and trusted nature.”
While the technology may not solve every problem in the world, it can be perfectly implemented when it comes to things related to data integrity, and immutability. In this regard, blockchain is king.
The CEO of Utopia Music, Brent Jaciow talked about the fact that blockchain technology is still emerging and shouldn’t be judged so harshly. This CEO noted that blockchain developers will need to work hard to overcome the challenges faced in the industry so they can harness the capabilities within. One thing that can boost awareness will be the creation of a simpler user experience when integrating blockchain technology.
A lot of points that were made in the McKinsey report were valid. There is still a lot of regulatory uncertainty and security concerns that plague the industry. A typical example of a security issue is the Ethereum Classic 51% power consolidation attack that was carried out last week. A well funded group or individual was able to hijack the entire network and take funds. Until now, no one knows who was responsible for the attack. This attack was possible on the proof-of-work consensus algorithm.
Before blockchain technology can see real progress, these sort of loopholes need to be fixed. Different blockchain companies are thinking of developing an API that will put blockchain technology ahead of any other emerging technology. The technology has the potential to revolutionize the world. However, without being harnessed, it will end up fading away from the minds of the mainstream investors.