Study: Why Companies Failed to Achieve Promoted Blockchain Success
According to a report conducted by Greenwich Associates, a finance industry advisory provider, posed the question as to why technology and financial industries underperformed their own predicted blockchain success. The report pinpoints obstacles companies faced that ultimately caused them to underachieve the hype they marketed around their databases. Interviewing executives from a variety of companies focused on blockchain solutions, the study pinpointed important insight into the reality of blockchain implementation on an institutional level, what obstacles they face, and what developments they discovered to be most crucial to the success of these solutions.
Not an Easy Feat
The financial advisory service provider conducted interviews with 213 international market players currently working on blockchain development projects. Participants included members of various exchanges, tech vendors, and even consultancy firms, however, nearly half of which work within the banking industry. According to findings, 93% of these respondents play major roles in their companies as decision makers or leading figures for blockchain development.
The study noted the fact that industry initiatives have failed to reach their own optimistic predictions marketed for the past two years. Based on the interviews, 57% of representatives stated that facilitating a shift to use emerging technology in place of historical market structures has been significantly more difficult than anticipated.
ZKP Tech More Desirable Than Blockchain Transparency
In addition, 42% of participants noted the topic of scalability as a major issue for companies attempting to implement DLT solutions. In an attempt to present a more positive view on these findings, Greenwich Associates’ VP and author of Building Blockchains, Richard Johnson, stated that its necessary to point out that despite findings, there are very few firms that successfully achieved speedier transactions using DLT solutions, and that there is still a possibility for competitive speeds.
Other obstacles include security of hardware, confidentiality with transactions, in addition to the push to achieve editable blockchains. The study also discovered that blockchain transparency is not the most desired feature for many companies. When asked, the majority of participants stated that implementing ZKP technology is among their main priorities for solutions. Richard Johnson stated that ZKPs require more layers of cryptography that enable each party to prove transactions are true without disclosing additional information.
The study also noted that 14% of these corporations are collaborating with financial entities such as Central Banks to establish cryptocurrency solutions. Overall the study helped provide a deeper insight into the struggles and success of blockchain implementation and what aspects work for companies across various industries. Despite an apparent rough start, the companies are confident that further development will help them achieve the goals they set out to achieve two years ago.