Blockchain technology has been described as the ultimate solution to several of the banking industry’s largest inefficiencies. Ryan Zagone, an executive at a crypto-currency firm joked at a blockchain event “it felt like blockchain would fix every financial problem and cure zika along the way. We’re in a hype cycle.” The theory and potential use cases of blockchain has created significant optimism among investors and executives.
While there has been significant hype around the technology, there has been little success of its applications. To illustrate this, Ryan Zagone points to Vermont’s failed implementation of blockchain to keep track of land titles. The core issue experienced in Vermont’s implementation of blockchain is that the technology is too complex for practical in-house use. In the near future, it seems that the technology will only be adopted in areas where the complexity of blockchain is outweighed by its provided benefits. An example would be cross-border lending where mitigating the risk of dealing with untrusted parties will greatly increase their efficiency. Overall, blockchain has the potential to benefit several industries, but its complexity will make it difficult for the technology’s wide spread adoption.
Resource:
http://fortune.com/2016/11/02/blockchain-failures-successes/