Chinese Study: Blockchain projects have a short lifespan of only 15 months

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.

“[These projects] came out very quickly, but also died quickly. With this in mind, governments around the world[must] increase their efforts, create common standards and thus help the Blockchain projects to be applied in real life,

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.

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.

“We have launched verifiable blockchain programs in China. And 200 private companies have registered interests in joining. This will help blockchain technology and industry to become more transparent and open,

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.

 

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CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Rene Peters

Rene Peters

Rene Peters is editor-in-chief of CaptainAltcoin and is responsible for editorial planning and business development. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. He is particularly interested in the long-term implications of blockchain technology for politics, society and the economy.

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