Has Blockchain Peaked Its Hype?
A company from down under called Digital Transformation Agency doesnât seem impressed with what blockchain has to offer and the current state of its technology. According to the chief digital officer, the technology is being forced by vendors and not governments or users.
Earlier in the year, it was reported that the Australian Government provided $700,000 AUD worth for its Digital Transformation Agency with the aim to âinvestigate areas where blockchain technology could offer the most value for Government services.â
Now, as we enter the last months of the year, the agency isnât impressed with what the current state of blockchain capabilities are. The chief digital officer of the Agency, Peter Alexander spoke on the matter and said:
âItâs an interesting technology but itâs early on in the development. Itâs at the top of a hype cycle. A lot of the engagement [with the agencies] is comparing blockchain against existing technologies.â In addition to this, Alexander included, âwithout standardization and a lot more work, for every use of blockchain that you would consider today there is a better technology.â
However, despite this, itâs interesting that while the Agency was administering the research, worth over 500 million dollars, the government in Australia chose IBM as a partner in over a $700 million deal for providing services related to automation and blockchain technologies.
The chief digital officer noted that the governments arenât, in fact, pushing for blockchain adoption. In a statement, Alexander said:
âIt would be fair to say that a lot of the big vendors are pushing blockchain very hard and internationally most of the hype around blockchain is coming from vendors and companies, not from governments and users and deliverers of services.â
He continued, saying,
âWe actually costed that with the application of the team staff, and weâre absorbing that funding. We were doing some work on it, we have a team that will do that and we costed the staff effort.â
After six months of research and over half a million dollars spent in research, the Digital Transformation Agency came to the conclusion that blockchain is in its âearly developmentâ stages.
What are your thoughts? Let us know what you think down below in the comments!