New Study Shows 43 Blockchain Solutions Implemented Had Zero Percent Success Rate
According to a new study conducted by the US Agency for International Development (USAID), 43 blockchain solutions implemented in the international development sector had a zero percent success rate.
The study examined these 43 different implementations of blockchain technology in the sector. Several distributed ledger technologies (DLT) projects were used and implemented by NGOs and other government agencies.
However, the study shows that there is no evidence or documentation of the results of the blockchain testings made by these companies and agencies. The team behind the research documented projects that promised to improve security or enhance operational costs. None of these promises were able to be documented in real-world applications.
About it, the study says:
“We found a proliferation of press releases, white papers, and persuasively written articles. However, we found no documentation or evidence of the results blockchain was purported to have achieved in these claims. We also did not find lessons learned or practical insights, as are available for other technologies in development.”
This is clearly not a positive sign for the space which is experiencing a bear market since the beginning of the current year.
At the same time, the team informed that they contacted different blockchain vendors to know the results of the blockchain implementations. However, none of them answered the requests to share data on these programs.
The report says that despite all the hype about blockchain technology and the promises made by companies in the space, the industry remains ‘opaque.’ Vendors want to implement different blockchain solutions, but many clients do not know the questions they need to ask related to suitability.
This report also shows that vendors tend to oversell the benefits of DLT and how this technology can enhance different processes. Nevertheless, blockchain is a simple database that has different scalability issues that many projects are still not able to solve.
There are several companies that are starting to work with this technology, showing that there is a real interest from firms to test this technology.