BCG States Blockchain-Tech Commodity Trading Overhyping
Boston Consulting Group, in regards to the commodity trading market and the utilization of blockchain-tech, is incredibly exaggerated. Many companies and financial institutions operating with commodities have been undergoing several tests for the past two years and introducing blockchain-tech although according to BCG, the potential for the techs use cases is severely overhyped.
Co-author of the report from BCG, Antii Belt, stated that a high number of trail or pilot schemes are currently underway although none of these tests have proven or become try systems in proper production as of now. A primary complication standing in the way is that it isn’t developed to be physically traded and the bottom line problem is monitoring its physical presence within the digital ecosystem.
As of this point, trading through blockchain platforms has not produced a set or important number, making the current volume and predicting or setting a direct estimate on when the widespread integration will occur, impossible. Several significant problems in the way of mass adoption are related to whether the technology can be operated financially in the first place. The co-author goes on to add that plenty of reconciliation is what is required right now, due to how old the industry itself is and the diversity in the language used by all involved people.
The consulting group also goes on to say that many vendors will refuse to integrate any DLT due to the fact that their profits and income come directly from inadequacies in value and unequal data distributing. Blockchain technology has the ability to completely eradicate both of those benefits by introducing full transparency and accuracy in terms of information.
Several companies have already conducted their own tests for trading commodities like food, natural resources and more with a prioritized supply chain operating and product tracking, despite how BCG has stated that the blockchain was not beneficial enough. Last year, Royal Dutch Shell, one of the world’s leading oil companies, as well as BP and Statoil collaborated on a commodity exchange network based on blockchain technology with several financial institutions. Additionally, the consulting agency has praised blockchains ability to shed more light on fraudulent acts and downgraded goods.