McKinsey expresses its skepticism regarding practical applications of blockchain technologies

McKinsey expresses its skepticism regarding practical applications of blockchain technologies
Jan 6, 2019 by Rico Wise

McKinsey & Company is a financial consulting firm established in 1926 and accounting for more than 10 billion USD of revenue, with more than 27,000 workers all over the world.

The article, created by three partners of McKinsey, points that there is not that much proof of a practical scalable application of blockchain. The article says that blockchain technologies have yet to turn into the revolutionizing tech some believe it to be. Taking into account the amount of funds and time invested in these innovations, too little has been actually achieved.

Moreover, the article points that the stammering path of blockchain advancement is not quite shocking as it is a nascent technology, which is quite unstable, costly, and sophisticated.

The article goes on to explain that per the life-cycle hypothesis, any product’s evolution can be separated into four phases: pioneering, development, maturity, and decline.

The first phase accounts for the starting point of the technology, while the second phase allows it to take off and witness success. Nevertheless, per the authors of the post, for the majority of blockchain advocates, the second phase is not taking place.

The article eventually proposes that per the principle of Occam’s razor, blockchain payment applications might be not the right answer.

Nevertheless, McKinsey proposes that blockchain technologies have practical significance for niche use cases, modernization and as a means to display the possibility for innovation. Also the article mentions that the innovations become fruitful as they shift ownership from corporations to consumers.