Since 2017, investors have lost billions investing in blockchain and cryptocurrency projects. In an information-starved environment, exit-scams, poorly executed ideas, and applications that simply do not make sense are able to thrive. A recent study can possibly shed some light on why this has happened—and is happening—in crypto.
MERL Tech, a research-blog focused on technology’s application in humanitarian aid, published an article on Nov. 29th with additional commentary from the author of a study which examined the gap between the claims a blockchain-related project makes, and the actual, verifiable results. The findings were startling.
According to a study by John Burg et. al., the claims made by many blockchain projects are dubious, with many failing to provide any tangible evidence to support their claims.
Burg has a long history of working in international development and humanitarian aid, having worked as a fellow at the Office of U.S. Foreign Assistance Resources (USAID) and having previously worked as a coordinator at the U.S. Department of State’s Foreign Assistance division.
The study he and his colleagues conducted sampled 43 different blockchain projects, especially those in the non-government organization, government contractor, and humanitarian aid space.
According to Burg, he attempted to examine the veracity of claims such as: “operational costs… reduced up to 90%,” and “accurate and secure data capture and storage.” If so, was there verifiable, tangible evidence.
In his follow-up post on the research, he added that many of the statements made by these companies were spurious, with little evidence to prove that these figures are legitimate, or even attainable:
“We found a proliferation of press releases, white papers, and persuasively written articles. However,