Blockchain hype cycle, are you injured?

Tencent Financial News According to CNBC, this week, at the Money 20/20 European Financial Technology Conference in Amsterdam, the Netherlands, I heard people say that we are now in the blockchain hype cycle.

One representative said to another: "In any case, we call it a blockchain. In this case, we will get funding."

Whether it's a joke or someone really thinks it doesn't matter. However, this statement highlights the reality that companies large and small often use the term "blockchain" in a wrong way.

Blockchain is the accounting system for information distributed storage. Its biggest feature is that it can establish trust relationship without relying on the trust endorsement of the central platform in the network environment without trust foundation. The practical application is to start from the bitcoin as virtual currency. . However, the application of blockchain technology is not limited to virtual currency. At present, in the fields of financial supervision, data sharing, and car networking, blockchain technology has a certain degree of application in many scenarios such as Internet finance, banking, insurance, supply chain finance, and clearing settlement centers.

Blockchain hype cycle, are you injured?

Some companies are just rushing into the blockchain's hype, with no reckless consequences.

Many industries have begun to adopt the principles of this technology and will use it to solve their own problems. Some companies have successfully tested. At the same time, some companies just rushed into the blockchain's hype, with no reckless consequences. A venture capitalist once told me that one company sold him to the blockchain, but the company did not actually apply the technology. The startup did not raise funds.

Regrettably, the views I have heard and mentioned are to some extent true. Let's take a look at listed companies that have added blockchain elements and witnessed rising stock prices. For example, Longfin, a financial technology company listed on the NASDAQ, acquired Ziddu, a blockchain solution service provider. The stock price rose by 2000%. Blockchain concept e-commerce Overstock.com announced a big step towards the blockchain. Even Eastman Kodak, which has more than 100 years of history, has joined the rave party of cryptocurrency and announced the launch of its own cryptocurrency "Kodak Coin" to create a new platform for digital photography. (For me, imaging products and related service manufacturers and suppliers are launching cryptocurrencies, which is crazy.)

Of course, some companies are doing very well in blockchain technology. It is undeniable that this technology is very promising. Both ING Group and BBVA Bank of Spain have told me that they believe that the blockchain may become popular in the banking industry within five years.

Although the optimism about the blockchain continues to rise, we must face the reality, because the adoption of this technology still faces various obstacles. One of the main concerns is whether the blockchain can span different industries and businesses. Currently, one bank may be using a blockchain solution, while another may use a completely different blockchain solution. It is not clear whether different blockchains can work together.

In addition, there is a question: whether some programs require a blockchain.

In order to raise the stock price or raise funds, the wording of the blockchain in the name of the company is similar to that of some companies during the Internet bubble. We all know how the Internet bubble ends.

According to reports, in early March, the world's leading economist, New York University Stern School of Economics Professor Nurie El Rubini pointed out that the blockchain technology behind the cryptocurrency is "the most over-excited technology ever. one".

In January, Credit Suisse pointed out in the report that the blockchain really matures until 2025. In this heavy report on cryptocurrency and blockchain, Credit Suisse has divided the development of blockchain technology into seven phases, including “idea formation”, “proof of concept”, “prototype”, “test”, "Production parallelism" and "production". Among them, the 2025 after the seventh stage of "production" is the time point for the mainstream society to adopt the blockchain.

In other words, it is still too early to really mature from the blockchain.

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