The article by McKinsey entitles– Blockchain’s Ocean Problem. This article has a deep coverage about the applicability of blockchain within various use cases. Also, it particularly pinpoints financial applications. Moreover, it states that blockchain must get used while looking at its seamless solution available. The article also reads:
Of the many use cases, a large number are still at the idea stage, while others are in development but with no output. The bottom line is that despite billions of dollars of investment…evidence for a practical scalable use for blockchain is thin on the ground.
According to him, the authors nearly apply the theory of economic life cycle to ongoing industry, expressing that blockchain remains a phase where ROI (return on investment) is negative.
There are various applications that exist in the PoC phase and enhancements from competing technologies. One of them includes SWIFT, where Ripple believes it is a solution that makes blockchain different of a stellar solution.
Nowadays we have seen many of alternative payments solutions with disincentives investment. Can blockchain technology offer an alternative or is there any need to have a solution for payment? The answer to this depends on what situation makes you experience.
The razor of Occam poses a problem-solving principle. Why? It is the simplest solution which intends to work the best. However, while talking about blockchain payment use cases it might prove as a waste.
Fintech is indeed an exclusively emerging sector, attracting much attention not the same like blockchain. Whereas, blockchain faces many issues to overcome like technical capabilities. Moreover, McKinsey acknowledges blockchain to hold notable potential within many industries supply chain, banking, insurance, healthcare, etc.
There is much more what the article by McKinsey covers; however, blockchain will become the technology to connect every single thread via its potential.
Will the McKinsey Company be right in its thoughts? Share your views in our comments section.