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New indicators point to corporate executives starting to wisen up to the notion that so-called blockchain technology is some kind of cure-all drug for their industries that they can just extract from Bitcoin and drop the cryptocurrency behind. The latest example of this is a recent survey by Deloitte, showing that 44% of American executives think “blockchain is overhyped”.
Also Read: 90% of Corporate “Blockchain” Pilots Will Never Materialize
“Blockchain Fatigue” Is Setting In
Accounting giant Deloitte has conducted an international survey of over 1,000 “blockchain-savvy” executives from seven countries, including the US, Canada, Mexico, UK, France, Germany and China. The data shows that 39% of respondents around the world believe blockchain is “overhyped.” And in the US this figure is even higher, with 44% see blockchain as overhyped, up from 34% in 2016. The main problem is that despite the constant babble about blockchain, there are actually very few active use cases. As a result, Deloitte says “blockchain fatigue” is beginning to set in among those who feel “its potential has been over-communicated, while its real-world benefits remain elusive.”
The analysis explains that established firms face a host of legacy concerns while trying to make blockchain fit into an already existing business model that may or may not benefit from it. Respondents also see a variety of obstacles moving forward, with a third saying current return on investment remains “uncertain.” And only 34% say their company has initiated deployment in any way.
Shift Towards Pragmatism
Trying to put a positive spin on the results, Deloitte analysts wrote that: “On their own, these numbers seem to indicate that blockchain is moving in the wrong direction. However, we believe this change in attitude is more reflective of the shift toward the pragmatists in the blockchain community.” They added that: “Based on our experience with the emerging disruptors, we believe blockchain adoption is far more advanced in the United States than the Deloitte global survey indicates.” However, it’s important to remember that their 2016 report also overestimated the pace at which blockchain production will materialize compared to what really happened so far.
The analysis notes that there is a significant number of skeptics who view blockchain as the overhyped engine behind a volatile and unregulated financial market. The writers try to put part of the blame for this on cryptocurrency traders, who supposedly “have helped to bring mainstream notoriety to blockchain,” among the general public. Still, there are signs the hype is not yet over. For example, nearly 40% of executives reported that their firms will invest $5 million or more in blockchain technology in 2019.
Does the idea of corporate “blockchains” make sense to you? Share your thoughts in the comments section below.
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