The abyss of disappointments: what early crypto anarchysts are busy with these days. Part 2: Blockchain is no longer a panacea

In the midst of a crypto hype in December 2017, events occurred bordering on the absurd. It was possible to get the blockchain to go anywhere to attract attention and increase demand. So the cost of the shares of the manufacturer of cold tea Long Island Ice Tea soared by 289% after the company changed its name to Long Blockchain. Along with the use of blockchain for PR resonance, there were projects in which the possibilities of technology were limited only by the imagination of the founders. An example of an absurd project of crypto hype times is a blockchain platform for planting and connecting 1.5 billion trees using embedded microcontrollers.

In the period from June to November 2018, when the crypto hype went into decline along with the course of Bitcoin, blockchain startups had problems. According to Sky News, more than 340 British crypto and blockchain companies ceased operations last year. Well-known startups suffered an unenviable fate: Nebulas platform, blockchain developer ConsenSys, social network Steemit, Ethereum browser Status by the beginning of 2019 reduced to 70% of employees.

Some investors wish they had never heard of Bitcoin

The company Gemalto, specializing in digital security, published a report according to which the use of the blockchain in devices and services of the Internet of things increased from 9% to 19% during 2018. But before the mass distribution of blockchain in the field of security is still far: 71% of survey participants Gemalto prefers data encryption to the blockchain, 66% of respondents are satisfied with password-based methods, 38% prefer two-factor authentication.

The Gemalto research data suggests that business is not in a hurry to introduce the blockchain, but sets the stage for future use. This is confirmed by the number of patents related to the blockchain. The iPR Daily intellectual property publication has compiled a list of companies leading in the number of blockchain patents. So, Alibaba corporation filed 90 applications, IBM - 89, MasterCard - 80, Bank of America - 53.

Despite the negative indicators of start-ups and skepticism, the blockchain began to gradually attract big business. By the beginning of 2019, the HSBC financial conglomerate conducted blockchain transactions worth $ 250 billion. Thanks to the HSBC FX Everywhere platform, the corporation conducted 3 million foreign exchange transactions and 150,000 payments. The Russian VTB Bank patented a blockchain system for cross-border payments, fast payments, and loyalty programs.

This suggests that while startups reduce costs, the blockchain is engaged in a large business that has the resources to leisurely look closely and tests the technology in various projects. From the point of view of the Gartner curve, disappointment in the blockchain as a way to solve any problems is replaced by a thoughtful approach to finding the most appropriate application.

Also in recent years has become a blockchain with charities. They not only use cryptocurrency but also make their activities as transparent as possible since the flow of financial flows is easy to track thanks to the blockchain. According to Fidelity Charitable, 2018 was a record year for the number of charitable blockchain transactions and the amount of crypto-help contributed. This organization alone received charitable contributions in the amount of $ 69 million in cryptocurrency (mainly Bitcoin). This is 10 times more than the year before.