McKinsey & Company, major financial consulting believes that there is little proof of practical use for blockchain technology. The company was founded in 1926 and the year 2018 it generated a revenue of over $10 billion with a workforce of 27000 across the globe.
The three McKinsey partners wrote an article which says, “evidence for practical, scalable use for blockchain is thin on the ground,” which explains “Blockchain has yet to become the game-changer some expected […] given the amount of money and time spent, […] little of substance has been achieved.”
The post further adds that “the slow path the Blockchain development is taking is not entirely surprising because the technology is still in infancy and is relatively unstable, complex and expensive.” The article describes that according to the life-cycle hypothesis, the evolution of any product can be divided into four stages: pioneering, growth, maturity, and decline.
The technology is at its initial point in the pioneering stage; the second stage includes product take off and its success. But as per article’s authors, “for many, [blockchain’s] stage 2 isn’t happening.” Then post includes Occam’s razor according to which the problem-solving principle that implies that the simplest of solutions typically tend to be the best of them all – “blockchain’s payments use cases may be the wrong answer.”
However, according to McKinsey & Company, Blockchain technology has real worth in niche applications & modernization indicating the ability to be a highly innovate initiative. The article also suggested that blockchain “brings benefits where it shifts ownership from corporations to consumers.” According to a report published in the mainstream American newspaper, Bitcoin’s (BTC) potential “to be a censorship-resistant means of exchange.” On the other hand, Tim May, co-founder of Cypherpunk activist movement & writer of the Crypto Anarchist Manifesto, reportedly said that Satoshi Nakamoto (founder of BTC) must be shocked at the current situation of the crypto sphere.
May criticized the focus of crypto industry on legal compliance by saying, “attempts to be ‘regulatory-friendly’ will likely kill the main uses for cryptocurrencies, which are NOT just ‘another form of PayPal or Visa.’”