Blockchain isn’t shaping up to be what people expected, according to a report from The Wall Street Journal. The technology, which offers security and transparency through the use of databases for recording transactions, is “failing to gain traction,” the newspaper said.
For years Blockchain has been viewed by some companies as a way to drive “industry-transforming projects,” including the tracking of assets through complex supply chains. However, that has not been the case for many companies who have given the technology a tryout.
As a result, many organizations are discontinuing projects that had been built with the technology in mind, or that relied heavily on it. “There’s not one company that has really shown, let’s say, a material change,” Francesco Bozzano, vice president of the corporate finance group at Moody’s Investors Service, said of blockchain efforts in supply chains.
The Rise and Fall
Still, blockchain has some good stories to tell, at least in HR. A number of HR technology specialists believe it will improve the function’s strategies by encrypting data and bringing transparency entire processes. Meanwhile, an online resume-validating network gets support from more than a dozen board members from companies such as Aon, Oracle, SAP, UKG and ZipRecruiter. The aim of the network is to reduce the time and cost of vetting candidates.
According to TechTarget, blockchain was created in 2008. It reportedly took off in 2014 as businesses began to see its potential uses and benefits. However, since the technology has become more mainstream, companies are beginning to see issues with its use.
The Journal found that big projects and programs using blockchain are “slow going or worse” for a number of reasons, including the technology’s complexity, the time required to get a blockchain into operation and the difficulties in enlisting its participants. In addition, experts say the technology is more expensive than other databases and requires more computing power .
“It’s been a long time since anyone has asked me about blockchain,” said Juan Perez, now CIO of Salesforce.com and previously of United Parcel Service. “It never really took off in my world.”
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