Beneath the headlines, there’s arguably been the early stirrings of a sea change in the blockchain industry. There’s a new trough of disillusionment, but this time its those working with blockchain applications, not bitcoin, who are being affected.
Described as the period in a hype cycle where interest wanes as experiments fail to deliver, the term was first used in the industry as bitcoin’s price declined in 2014 amid overinflated expectations about its use in e-commerce. Now, the innovators in the ecosystem seeking to apply blockchain technology for use by financial incumbents are showing the first signs of a similar frustrations.
The spinning of the tires on such attempts perhaps hasn’t been audible given that, while bitcoin’s problems were and still are largely public, the institutions experimenting with blockchain have done their best not publicize those struggles.
Still, there has been a noticeable change in tone among those working close to such efforts.
For all the investment, it remains increasingly unclear exactly how banks will use blockchain technology or distributed ledgers, or if the areas where it seems most effective will be lucrative or interesting enough