Consulting giant McKinsey & Co recently published a report on the state of the blockchain industry, claiming that while crypto technology has potential, it has been unable to break away from the early “pioneer” phase with most use cases failing to take off.
The Report: ‘Blockchain’s Occam Problem’
The report is not entirely critical, stating that blockchain is viewed as a potential game-changer in many industries. It does, however, point out that a huge amount of money has been pumped into blockchain projects, adding the view that “little of substance has been achieved.”
The consulting firm states that blockchain is an infant teleology that is “unstable, expensive, and complex. It is also unregulated and selectively distrusted.” A chart is included in the report, illustrating the industry struggling to emerge from the first stage of a four-stage cycle moving from pioneering to growth, maturity, and decline.
The report goes on to detail emerging doubts regarding crypto technology, with the report title referring to Occam’s Razor, the concept that the simplest answer or solution is the best one. The implication here, of course, is that blockchain technology is not the simplest solution.
Crypto Firms Respond
Anyone reading the report could be forgiven for taking a rather dim view of the technology. While not an outright dismissal of blockchain tech, McKinsey’s report certainly aims to drastically temper the expectations of any blockchain enthusiasts who firmly support the technology as a potential solution for many cross-industry problems.
Blockchain firms have not remained silent in the face of the report, with multiple CEOs addressing and debunking various points made within.
CEO Angel Versetti of blockchain supply chain tracking company Ambrosus acknowledged that blockchain hype had clouded expectations,