Even though most financial experts claim Bitcoin is in a bubble, there may be an even bigger problem. More specifically, the hype associated with DLT is very real and growing out of hand as well. The US Depository Trust and Clearing Corporation grows concerned over what this technology is effectively capable of. A lot of projects don’t need a blockchain, yet the buzzword is thrown around quite often.
It is good to see some people acknowledge the DLT hype is a big problem. A lot of projects and companies claim they will use the blockchain for whatever purpose. Saner minds will gladly state how the number of real use cases for this technology remains limited. Most problems can be solved without this technology whatsoever. US Depository Trust and Clearing Corporation CEO Mike Bodson feels now is the time to temper expectations involving blockchain. The technology is too immature to be considered production-ready.
DLT is not Production-Ready
It is true the blockchain has a ton of potential. However, it is still immature technology at best. Especially private ledgers still have a lot to prove and everything to lose. Right now, there is no platform even remotely close to production-ready, according to Bodson. The past two years of DLT development have certainly been interesting to keep an eye on. Most claims regarding this technology’s potential are vastly overstated, in his opinion.
DTCC CEO Mike Bodson explains it as follows:
“Things have changed quite a bit since then. For one, DTCC and many of our post-trade colleagues are now recognized as integral to developing, executing and managing distributed ledger solutions. The new entrants that wanted to eat our lunch are instead joining us at the table to collaborate on use cases. In addition, many in the industry are looking to these same trusted central authorities to create the governance and standards around future DLT applications.”
It is good to see a level-headed approach to the DLT. While there are a lot of use cases to explore, it remains to be seen how things play out. This technology has a lot of potential in certain areas. The DTCC will keep exploring these options as well, which is only to be expected. However, ensuring this infrastructure can scale is a different matter altogether. Solving this challenge will not be easy or straightforward whatsoever.
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