The co-founder of Ethereum, Vitalik Buterin recently talked about how blockchain technology is being misapplied in certain industries. This was during an interview with Quartz that was published on the 26th of November. Buterin said that there are many companies that are establishing higher standards through blockchain technology. Even if he thinks there are so many applications of the technology, he doesn’t believe it can be applied in every industry.
In his words:
“Sometimes, most people use blockchain as part of a marketing hype. In other cases, they may be genuinely interested in the technology and how it can help them to align more with their workmates. This is a totally normal thing to do”.
During the interview, Buterin noted that cross-border payments and cryptocurrencies are the most suitable applications of blockchain technology. He continued:
“Many other ideas, whether you are talking about self-sovereign identity or products, will take a lot of time to be successfully applied before we would know if it is scalable or not. Blockchains do not provide 100% guarantees for everything especially when it comes to real world things.”
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He also talked about the proprietary nature of blockchains used in corporate projects like the projects being launched by IBM. He said:
“I do not understand this completely but the thing that got my attention is that they were saying: ‘Hey, we have all the IP and this is our platform you’re going to get on. That’s not the point of the technology”.
Other Non-financial Use Cases Of Blockchain Technology
Referring to how IBM is using its blockchain to track food, provide product confirmation and information data, etc, Buterin said that the project may be far fetched for the company even if it is valuable. The point is that blockchain applications outside cryptocurrency and payment sectors are difficult to accomplish. However, Buterin said that one of the non-financial applications is the use of blockchain for authentication of university degrees as in Singapore. Using blockchain, institutions can issue school certificates digitally.
Earlier in the month, the Malaysian ministry of education announced that a University Consortium was established to fight against fraud with blockchain technology. The system was created to verify and issue authentic degrees by the university. The consortium also offers skill training for the development and adoption of blockchain technology.