The top consultation firm Mckinsey & Company has claimed that blockchain technology is failing to make progress past its breakthrough phase. However, the company highlights, that payments may not be the best application of sophisticated technology such as Blockchain.
Mckinsey & Company published an article on the current issues experienced by blockchain technology in its entirety. The company debates that through the past couple of years the industry has witnessed an influx of investments from both venture capital firms and major corporations.
Despite the rise in blockchain-based projects up to $21 billion in 2018, little success has resulted considering the money and attention invested.
“The bottom line is that despite billions of dollars of investment, and nearly as many headlines, evidence for a practical scalable use for blockchain is thin on the ground.”
The consulting firm considers it an infant technology. It remains complex, unstable, unregulated and expensive. The industry is yet to advance from stage 1 of its development. The investments need returns in the form of a promising product being brought to the market.
So far, the industry has been failing to move forward from its pioneering stage towards adoption and market expansion. One of the reasons being, especially for “blockchain players in the payments segment” is that the technology is not the most convenient solution.
“Occam’s razor is the problem-solving principle that the simplest solution tends to be the best. On that basis blockchain’s payments use cases may be the wrong answer.”