Wall Street is Not Yet Excited About Blockchain

A lot is invested by companies in blockchain. There are also plenty of consulting firms and speakers that promise heaven as long as your company uses a blockchain. This development will continue for a while, blockchain as technology and application still has a lot of growth potential. Yet the switch to distributed ledger technology is not going very fast.

Which question does blockchain answer?

Reuters writes that the investments have not yet delivered the expected results. That is because, as a technological solution, blockchain does not really answer a question from investors. Investors are simply not looking for the answers that blockchain can offer.

An evaluation of 33 blockchain projects started by large companies in the last four years shows that there is still a long way to go before technology becomes commonplace. Bloomberg writes that at least ten of these projects are still in the test phase. The projects that have succeeded in surviving the test phase have not yet been converted into full acceptance by the client.

Not overnight

“This is a slow transformation of the market. It is no big bang, “says Hyder Jaffrey, head of strategic investments at investment bank UBS AG. He estimates that it can take at least another three to seven years for Blockchain to leave a significant impact on daily life.

UBS has approved a cryptocurrency project called Utility Settlement Coin. After half a decade of work, the project, which is now being developed by Fnality, would be launched in 2020. According to Rhomaios Ram, CEO of Fnality, many other markets must also implement blockchain in order to perceive the desired effect of the project.

John Whelan is the head of Santander’s digital investment banking system. He believes that blockchain projects can flourish if they focus on the following three pillars: technology, demand and compliance. He believes that the early adopters of blockchain did not understand how important this is and that these three need the right balance.