The adoption of blockchain technology in mainstream industry segments is growing steadily since the past one year. Many businesses and financial institutions are currently in various stages of development and implementation of distributed ledger technology based applications. However, a majority of them haven’t moved beyond the trial and pilot phases.
The present scenario, rate of development and implementation of the blockchain technology indicates that it still has a long way to go before becoming a mainstay solution for global as well as local players. One of the well-known personalities in the cryptocurrency sector, Jon Matonis who has been the founding director of Bitcoin Foundation and presently serving as the vice president of corporate strategy echoes the view. In one of the panel discussions at the MoneyConf 2017, sharing the stage with Huy Nguyen Trieu — CEO of The Disruptive Group, Matonis said,
“At the moment, blockchain projects don’t go past the proof-of-concept state. Every blockchain company has a proof of concept. But they don’t materialize to actual products for the public.”
The current lag in real-time implementation is due to various factors, including the readiness factor of the organizations for which the solutions are intended and the existing regulatory environment. Also, the concept of blockchain being a relatively new technology has its own challenges in terms of the availability of skilled developers and its ability to meet the varying requirements of different industry segments.
Matonis’ interaction during the MoneyConf 2017 event was further elaborated by one of the business resource websites. Quite contrary to popular belief, the financial sector will not be the main driver of mainstream cryptocurrency implementation. It is going to be entertainment industry which will lay the groundwork for a stable cryptocurrency and blockchain environment. He was quoted saying,
“Regarding Bitcoin, we’re seeing that online gaming/gambling has increased. Bitcoin is currently used in online casinos. But this is normal, many revolutionary technologies start in the adult entertainment and online gaming sectors, as seen with PayPal. What we’ll see is that many of the new key entrants in blockchain to financial services won’t be necessarily the FIs, like mobile networks in Africa.”
On the other hand, Nguyen stated that the concept behind blockchain is not entirely new, but it is the way the concept has been presented, with a new design and philosophy which makes it more versatile and disruptive. Nguyen thinks that Ripple, through its collaboration with leading banking and financial institutions has a potential to push blockchain towards mainstream adoption.
Both heavyweights have a valid point when it comes to cryptocurrency’s mainstream status. The organized sector, with its influence on regulatory bodies and governments, and the entertainment industry, with not so strict regulations as banking sector can drive innovation from two opposite ends to achieve the goal of mainstream adoption.
Ref: IBS Intelligence | Image: NewsBTC