A Chinese study shows that global blockchain projects have a low life expectancy: the average blockchain project survives for only 15 months. Furthermore, only eight percent of the companies launched worldwide are still active today, according to a report by the Academy for Information and Communication Technology CAICT. While blockchain adoption is booming in China, the Institute is now calling for more standardization to ensure the survival of the projects.
Euphoria and bankruptcy can be close together, which is particularly noticeable for blockchain companies worldwide. As reported by the financial news Chinese Money Network, the average lifetime of distributed ledger projects is only 15 months. This was found out in a study by the Chinese Academy for Information and Communication Technology CAICT. This means that the average project fails shortly after the infamous one-year threshold.
According to the Chinese Ministry of Information, only eight percent of the 80,000 projects initiated in recent years are still active today. On the other hand, one in ten had to stomp their blockchain attempts.
For He Baohong, CAICT Director of Cloud Computing and Big Data Research, who presented the results of this week’s study, this is a reason to take a more decisive global approach.
said He at the China International Big Data Industry Expo 2018 in Guizhou City.
Another key finding of the CAICT study of global blockchain trends on Monday was the increasing volume of data and cryptographic assets and the general growth of digital currencies.
What you'll learn 👉
Blockchain boom in China – Standards should ensure survival
Technology is currently experiencing a real boom. In March, a research institute of the Ministry of Industry and Information Technology launched an index to use the advantages of the Blockchain. With the domestic industry in mind, this should evaluate various software formats on the basis of the criteria of technology, applicability and innovation. However, safety and standards are primarily intended to ensure the survival of new projects in the future.
He praised the advances of the Ministry in Guizhou City.
On the other hand, the blockchain is booming, especially in the books of Chinese banks. For example, the Bank of China filed a patent for the block chain scaling in February. In addition, the State Bank is currently trying to support its development initiative for provinces groaning under poverty. Just last week, a pilot project for the Himalayan region of Tibet was launched.
Blockchain Criticism: Sentenced to Failure?
While more and more blockchain start-ups are springing up worldwide, however, criticism continues to grow of the euphoric mood towards the technologies.
Wall-Street analyst and blockchain investor Spencer Bogart found critical words this week, especially against crypto currencies. Although these would have promising potential, they would still remain below their potential at present. He therefore advises against investments. Bogart thus adds another member to the long list of crypto and blockchain sceptics with his name.
