Blockchain buzz is being used as a tool to promote certain systems and solutions. A new study found that some companies are starting to omit the term “blockchain” from their projects and software. The study is describing that the industry will enter a new maturity era. It won’t be marketed as a revolutionary tech, but used in normal products under the hood.
Ditching the Blockchain Buzz
The report, made by Forrester Research and written by Martha Bennett and Charlie Dai explores the world of blockchain (or DLT, as they call it) and its possible evolution for the next year. One of the main findings that it has published is that some companies have started to ditch the blockchain buzz in favor of other more nuanced alternatives.
This movement is really strange because the trend was to append blockchain to everything that had to do with decentralization. This to take advantage of the exposition that this term brings to anything. Blockchain projects are getting a bad rap by overpromising objectives and underdelivering them.
In place of the term blockchain, some projects have started to use “DLT”, an acronym for Decentralized Ledger Technology, a term that describes the functionality but does not cause the shock of the word blockchain.
Blockchain Used Incorrectly
In fact, most of the projects that use the word blockchain in their description or names use the term in an incorrect way. The report states that:
“The networks that are live or under development vary greatly and frequently lack key characteristics that many regard as essential components of a blockchain,”
so, in a way, most blockchain promoted projects have only some characteristics of true blockchain products. They call this practice “blockchain washing”.
This effectively makes people buy the blockchain buzz and regard the projects as decentralized, when in fact they are not.
The Future For Blockchain
The report also forecasts a time of decline for these blockchain projects, something that they call the blockchain winter. But they are seeing this as a sign of maturity on the industry. This will bring a consolidation of the projects that really integrate blockchain significantly.
They are predicting that the most important movement in the future for decentralized ledger technology projects will be tokenization of assets. This is an important technology that allows dividing ownership of indivisible assets for various actors. Tokenization is already happening now, and will keep growing well into the next year.