• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC
Breaking News: This Bankrupt Crypto Firm Returns 27,000 Mining Rigs To Pay Off Loan
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC
Bitcoinist.com
No Result
View All Result
Breaking News: This Bankrupt Crypto Firm Returns 27,000 Mining Rigs To Pay Off Loan
Blockchain hype Swanson
Advertisement

97% of Blockchain Startups are ‘Chainwashing’ – R3’s Tim Swanson

Antonio Madeira by Antonio Madeira
6 years ago
in Bitcoin Technology, Blockchain, News, News teaser, Start-Ups, Technology
0
Advertisement

Chainwashing is the perfect term, coined by R3’s Tim Swanson to describe the current “Blockchain, not Bitcoin” hype that is hopefully nearing its peak. 


Peak Blockchain Hype?

There is a lot of hype around Blockchain or Distributed Ledger Technology (DLT) today. According to a new survey by Synechron among 200 financial services business and IT decision-makers across the US, UK and Europe, over two-thirds (67%) of companies in the industry are actively pursuing blockchain initiatives. Moreover, 94%, believe that key leaders (board members) have bought into developing blockchain projects.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!

Today, the blockchain space resembles the hype of cloud computing a few years ago, where companies can simply throw the “Blockchain” buzzword around simply to get investor attention.

swanson

What was once known as “cloudwashing,” i.e. rebranding an old product or service by associating the buzzword “cloud,” has now become “Chainwashing,” according to Tim Swanson, Director of Market Research at R3CEV.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

Swanson noted in a blog post:

We think the number of companies with legs will continue to increase over time but chainwashing will continue to be a noise pollution problem for the next few years in the enterprise world even after production systems have been integrated into institutions.

 Swanson spends much of his time filtering startups that his team at R3 speaks with every month. Pretty much every pitch nowadays leverages buzzwords like “blockchain” and “distributed ledger.” Although his team has listened to roughly 400 pitches in the past year, there are only about a dozen “companies with legs.”

Reinventing The Wheel

Swanson vets startups’ motives by asking how they define “blockchain,” what problems it can fix, and if these can be fixed using existing and proven technology.

“By asking these types of questions our team has helped filter the 400 or so companies/projects into a much more manageable dozen,” he notes.

wheel-1

Many of these companies try to reinvent the wheel as a square and call it wheel 2.0, only to remain relevant in the tech world, where the trend towards decentralization is gaining steam. There is, however, a reason why the majority of services are centralized: because it works. Centralized systems are usually more reliable, efficient and scalable, particularly for enterprises.

Editable blockchains are a prime example. They are, for all intents and purposes, distributed databases, something that is not new at all. Blockchain technology, on the other hand, can bring immutability and transparency using consensus mechanisms such as Bitcoin’s proof-of-work.

Do you want to set your records in stone? Make them semi-transparent? If not, then maybe a plain old database just might solve your problems. Otherwise, there’s a good chance many of these so-called ‘blockchain startups’ are simply chainwashing in an attempt to fool investors.

“As a consequence, it is probably safe to assume vendors are trying to pull a fast one on you, especially if it involves needing your company to acquire a cryptocurrency or ‘permissioning off’ an existing cryptocurrency,” explains Swanson.

According to legend, if you say Blockchain three times fast, your databases will magically become immutable & your company a fintech leader.

— Samson Mow (@Excellion) August 28, 2016

Chainwashing Everything

Even Central Banks are engaging in chainwashing, in fact. One example is the idea of blockchain-based virtual (fiat) currency planned by the People’s Bank of China. While the system will be built using blockchain technology, it will behave just like a centralized database with identification-linked accounts.

blockchain

Using blockchain technology for this purpose will not make fiat currency better, at least for the citizens. The fiat monetary system will remain centralized, debt-based, and inflationary. It will, however, remove the control and privacy that was once granted to users of physical cash.

Indeed, chainwashing is increasingly becoming a common practice used to attract funding and media attention. Startups such as Arcade City, an Ethereum-based ride-sharing application, or Matchpool’s ‘blockchain-based Tinder’ come to mind.

“What is it about a blockchain that solves a problem that couldn’t be solved with existing technology?” asks Swanson.

Do you think the era of the blockchain will fade into irrelevance like so many others? Or the hype real and here to stay?


Images courtesy of Shutterstock, Twitter

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Antonio Madeira

Antonio Madeira

Related Posts

Polkadot DOT DOTUSDT

Automotive Giant Toyota Explores Polkadot Project To Increase Business Efficiency

2 days ago
Blockchain

Blockchain For Traceability: Thailand’s Biggest Food Exporter Uses Tech To Monitor Goods

7 days ago
Korean Financial Services Commission Chair Announces Security Tokens

Korean Financial Services Commission Chair Announces Security Tokens

2 weeks ago
DCG

Tron Founder Justin Sun Ready To Invest $1 Billion On DCG Assets

3 weeks ago
ETF

Samsung Unveils Bitcoin Futures ETF Amid Escalating Crypto Interest

3 weeks ago
Hong Kong Flag

Hong Kong to Limit Retail Investors’ Crypto Trading to Only ‘Highly Liquid’ Assets

3 weeks ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Top Casinos

BitStarz
BitStarz
Punt Casino
Punt Casino
mBit
mBit
Metaspins
Metaspins
1xBit
1xBit
Coinplay
Coinplay
K8
K8
Vegas Casino
Vegas Casino

Sportbooks

Coinplay
Coinplay

Press Releases

  • The Three Best Cheap Cryptos To Buy Now – Snowfall...

    16 hours ago
  • Could Big Eyes Coin Bring Warmth To The Long Winter? How...

    17 hours ago
  • Cryptocurrencies That Connect With Their Community...

    17 hours ago
  • Rivalry Between Dogecoin and Shiba Inu Escalates as Big...

    17 hours ago
  • Get Rich While Gaming: RankerDAO Offers Unlimited Potential...

    19 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.