In recent years, we have seen increased interest in attempts to utilize DLT in nearly every conceivable domain. The desire to apply this novel technology is understandable as DLTs are becoming one of the most disruptive inventions of this century.
However, the best solution for DLT has not yet been determined. This may be seen as a failure, but in reality, it is one of the great strengths of this fast-paced and innovative field. Yet, there is a general lack of understanding in the space by companies who seek to integrate DLTs into their business. The failure here is not exclusive to the inability to solve technology obstacles, but also includes ascertaining real–world uses cases, as well as establishing the core values to which a decentralized network should adhere.
DLT are being made by people who seek to improve outdated infrastructure, explore alternative monetary systems, or create transparency in public processes. At its core lies the ideology of no central governance and no point of failure controlled by any individual. It is about delivering the tools to the individuals—the tools that give us absolute control over our own operations. The tools that, on a global scale, remain incorruptible, fast, and flexible.
Even though at the end of 2017 numerous established corporations and at least 115 DLT start-ups employed more than 2000 people to implement various DLTs into their existing technology, the industry is still in its infancy.
The immaturity of the technology, as well as its high barrier of entry of difficulty for both usability and understanding, prevent rapid mainstream adoption.
Bitcoin’s market capitalization stands for around 35% of the market. As the original network, it is still the most recognizable one out there.
Looking at the trend charts of all the cryptocurrencies, it is visible that a variety of alternative cryptocurrencies (altcoins) are gaining popularity and capitalization. Ethereum is the perfect example. It gained prominent exposure as the first platform that enabled Turing-complete smart contracts. Slow confirmation times and high network fees create a poor user experience. Moreover, they are far from delivering on the promises of transparency, trust, and real-world applications.
According to research and advisory companies, like Gartner, blockchain-related technologies have reached the peak of inflated expectations on the hype cycle. As a consequence, the market will focus on useful, promising projects only.
"This year’s Gartner CIO Survey provides factual evidence about the massively hyped state of blockchain adoption and deployment," said David Furlonger, vice president and Gartner Fellow. "It is critical to understand what blockchain is and what it is capable of today, compared to how it will transform companies, industries and society tomorrow."
According to the PwC Global Blockchain Survey 2018, which covers answers of 600 executives from 15 territories, 84% of organizations "have at least some involvement with blockchain technology."2 However, separating the hype from actual research and development is of utmost importance. That is why DLT is most often used in financial services (46%), followed by industrial products and manufacturing (12%), energy and utilities (12%), healthcare (11%), and governments (8%). Retail and consumer industries, as well as entertainment and media, stand for only 5% of total global development.
The DLT industry is only starting to think in practical terms and developing real-world use case. We strongly support that movement. It is already past the revolution time.
Evolution is next.