Why large companies refuse to blockchain

It seems that the affair of corporate America with bloccano coming to an end, writes Bloomberg.

Почему крупные компании отказываются от блокчейна

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According To Forrester Research Inc. this year will be phased out several projects based on the technology of the distributed registry. And some companies are still conducting experimental trials have tempered their ambitions and put those plans on the back burner. Assessment Forrester Research, 90% of these developments and will not be embedded in the operations of the company.

Even the Nasdaq, which actively promotes the idea of blockchain and cryptocurrency, are not as far advanced in this area as expected. Exchange operator, said in 2016, plans to use blockchain when voting at meetings of shareholders and issue of shares of private companies, still found the application of this technology in any large-scale projects. Magnus Haglind, senior Vice President of Nasdaq and head of product management market technology, once said, “We were hoping that we will be able to quickly find applications of the blockchain. However, the introduction of new technologies requires active cooperation with market participants, and this takes time.”

The purpose of the blockchain is to create a tamper-proof digital registry is an innovative way to track products, payments and customer activity. However, it turned out that this vaunted technology difficult to use for real world problems. Companies that try to use it in your business, have problems with efficiency, control and implementation of operational activities.

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The hype and reality

“The discrepancy between the hype around the blockchain and the reality of the situation is enormous, says Rajesh Kandaswamy, an analyst at Gartner Inc. — I’ve never seen anything like it. The practical uses of the blockchain is very rare.”

All this hardly pleases the producers and blockchain services, among which are such companies as International Business Machines and Microsoft. They strive to make billions of dollars on cloud services that will help you manage the supply chain to send and receive payments and interact with customers. The President of the company Endpoint Technologies Associates Roger Kay says: “the Blockchain should be an important source of future revenue for IBM, Microsoft and other companies selling hardware, cloud services and consulting services. If the pace of blockchain will slow down, analysts will have to revise future earnings to decrease”.

At IBM, where developments of the blockchain are engaged more than 1,500 people, said that it continues to see strong demand for its products. However, according to Jerry Cuomo, Vice President of IBM’s blockchain-technologies, growing competition from other companies may affect how much IBM can get from their customers.

Microsoft also exudes optimism. “In our view, the market for corporate blockchain is very promising and progressing rapidly, — said in a statement. — We will continue to work on the development of innovative technologies and will work closely with industry leaders to make the business community aware of their value”.

According to a study by WinterGreen Research Inc. this year, at the moment, IBM and Microsoft control 51% of the estimated $ 700 million market of services and products based on the technology of the blockchain.

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For most companies the blockchain continues to be something exotic. A study conducted by the consulting company Gartner, showed that only 1% of IT Directors said that blackany use in their activities, and 8% say that they plan to implement them in the near future or conduct tests in this area. Almost 80% of IT Directors said that they did not feel the slightest interest in this technology.

“No more delays”

Many companies have previously stated their plans to use blockchain, changed their position. Now the largest operator of the Australian stock exchange ASX expects their settlement and clearing system based on the blockchain will appear not earlier than the end of 2020. Two years ago this company was going to launch the commercial blockchain-based platform within 18 months. The exchange stated that “there were no delays”, as until recently the company did not announced exact date of launch of the project.

Australian mining giant BHP Billiton announced in 2016, in the beginning of the 201st will implement a blockchain to track samples and borehole fluid. But, by words a press-the Secretary of the company Judy Dain “at the moment the company is not working on any projects or challenges bloccano”.

However, organizations that support the development of the blockchain technology, I believe that next year the situation may change for the better.

“We are not talking about rapid growth, says Ron Resnick, Executive Director of the Enterprise group, Ethereum Alliance, which includes about 600 companies, including Cisco Systems, Intel and JPMorgan Chase. — I don’t expect it will happen this year. While all test the waters”.

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In search of standards

All of these delays are one important reason: most providers do not offer compatible blockchains. Companies are afraid that will be tied to one provider, and the Enterprise group Ethereum Alliance (EEA) hopes to solve this problem by establishing common standards.

According to Resnick, in mid-2019, his organization will launch a program of certification tests for the software based on the blockchain. Competing with EEA consortium Hyperledger, representing the interests of companies such as IBM, Airbus SE and American Express is going to connect their software based on the blockchain to popular platform Kubernetes.

Most blockchains are not yet able to cope with a large volume of transactions, and therefore not suitable for large corporations. Their application is very limited, and most successful blockchain projects — those on which he worked for several companies. But when these companies are forced to share the same blockchain, they may have difficulty deciding what technology to use.

Many people are simply afraid to become pioneers in this field and the first to fill the cones.

“Everyone is waiting for that first failed the other, no one wants to become a “Guinea pig”, — says the Executive Director Hyperledger Brian Behlendorf. — That’s how the world of enterprise software”.

Source: Insider.pro

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