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Ethereum Co-Founder Says Blockchain Is Not Applicable in Every Industry

Samson Ononeme | Nov. 27, 2018
Ethereum Co-Founder Says Blockchain Is Not Applicable in Every Industry

Ethereum's co-founder, Vitalik Buterin explained in a recent interview why he is distressed about the IBM blockchain, and also highlighted what blockchains might be good for—that is, beyond cryptocurrency.

November 27, 2018 | AtoZ Markets - Amidst the falling price of cryptocurrency, which has a hit a new low for the year, the desire for companies to integrate blockchain into their services is still alive and strong.

Vitalik Buterin, the co-founder of Ethereum has said in an interview with business news outlet Quartz, that the misapplication of blockchain technology in some industries leads to “a lot of wasted time.”

What Is the Blockchain Technology Suitable for?

While speaking at the Devcon4 blockchain conference, Buterin stated that although there are quite a number of organizations that try to establish higher standards by using blockchain technology, for example, the UN’s World Food Programme, he does not think the technology is viable in every industry. He was quoted as saying:

“Sometimes it is for marketing hype. Sometimes it is just people who are genuinely excited about blockchains and want the thing they are personally excited about and their job to align more with each other, which is a totally legitimate, human thing to want to do.”

While some firms have little in the way to benefit from integrating blockchain, the 24-year-old Ethereum cofounder pointed out two industries for which blockchain tech is most suitable, the transactional-based cryptocurrencies, and cross-border payments. These firms stand to benefit the most from blockchain.

"Cryptocurrencies and making international payments easier. All of the other ideas—whether we’re talking about products or the self-sovereign identity stuff—that’s clearly something that still needs much more time to be worked out before we can see [if that] makes sense at scale."

Vitalik Buterin Distressed About the IBM Blockchain

Buterin also gave his viewpoint on the generation of blockchain by computing giant IBM and other large corporations, particularly, the absence of decentralization promoted by regulated industry,

“I don’t understand this deeply, but the detail that jumped out at me is they’re saying ‘Hey, we own all the IP and this is basically our platform and you’re getting on it.’ And like, that’s… totally not the point….”

The cryptocurrency pioneer further referred to IBM’s blockchain for food tracking - IBM Food Trust - that is designed to provide confirmation about products’ origin, stating that while the project has potential value he is skeptical of the company’s ability to execute it. “there’s definitely something there, but whether or not any of the actors there are doing it remotely correctly, I’m much less sure,” Buterin concluded.

The University of Tokyo launches a Course on Blockchain Technology

Earlier, AtoZMarkets reported that an engineering school of the University of Tokyo has started offering the brand new course that is focused on the blockchain technology.

The purpose of launching the brand-new blockchain course is to educate those that are talented, highly motivated, as well as mathematicians about the fintech industry and digital currency technology. 

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.