Companies are turning their noses up at the word blockchain, claiming that it’s too over-hyped, according to new research.
Changing the B-Word to DLT
Once it seemed that everyone was searching for ways to add the word blockchain to their company name.
Last October, it was reported that On-Line Plc, a British company, had seen a near 400 percent share surge after changing its name to On-Line Blockchain Plc.
Similarly, in December, New York-based Long Island Iced Tea announced it was changing its name to include the word blockchain to become Long Blockchain Corp. As a result, shares for the drinks producer soared 500 percent. However, a report in August suggests that the company has once again shifted its business focus.
These are just a few examples of people embracing the technology. Yet, now it seems that businesses are turning away from it. Instead, they are applying the word DLT, also known as distributed ledger technology. The findings have been published in a new report from Forrester Research, reports Fortune.
The report states:
The networks that are live or under development vary greatly and frequently lack key characteristics that many regard as essential components of a blockchain.
The study comes at a time when research suggested earlier this month that EOS lacks the fundamental attributes of blockchains and works more as a centralized cloud service. Yet, while the research from Forrester Research has pointed out the networks lack key characteristics, it’s not all doom and gloom. Rather, the study notes that “steady but cautious progress” will be seen.
SEC’s Clayton Speaks Out
It may be a good thing, though, that companies are turning away from adding the b-word. In January, Jay Clayton, chair of the U.S. Securities and Exchange Commission (SEC), warned companies against adding it.
At the time, he said:
I doubt anyone in this audience thinks it would be acceptable for a public company with no meaningful track record in pursuing the commercialization of distributed ledger or blockchain technology to (1) start to dabble in blockchain activities, (2) change its name to something like “Blockchain-R-Us,” and (3) immediately offer securities, without providing adequate disclosure to Main Street investors about those changes and the risks involved.
So, will we soon see an influx of companies adding DLT to their names? Only time will tell.
What do you think of the research? Do you think that the technology is over-hyped? Let us know in the comments below.
Images courtesy of ShutterStock, Brookings Institute/Flickr
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