Ever since the emergence of blockchain technology, many companies have been looking for ways to benefit from the blockchain franchise. This is why the number of blockchain startups have increased dramatically over the last few years. Almost every company wants to be associated with the blockchain industry in a bid to benefit from the frenzy. Blockchain advocates believe that the blockchain is going to change the world for the better. However, not every blockchain startup has been able to fulfill its promise and deliver products that will have a disruptive effect on the way the world works.
43 Blockchain Startups Are Yet To Deliver Products
Statistics have shown that 43 high-profile blockchain startups that submitted whitepapers and raised funds for their products are yet to deliver on their promises. Most of these startups have not even come up with excuses to justify what they have not been able to deliver a working product. A technology research firm that monitors upcoming trends, MERL Tech, reported that the blockchain startups make big promises but fail to deliver.
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Published on Thursday, the research from MERL Tech showed that most of the whitepapers these startups submit are too good to be true making it impossible for these companies to deliver on their promises. The 43 startups that were featured on the report have not yet delivered any functional service or product. What’s more, they haven’t provided any update on the projects they are working on. When MERL Tech tried to reach out to these companies, they did not get any response.
Blockchain Technology And Startups
As you already know, blockchain technology is a distributed database that provides the kind of transparency that no other technology can provide at this time. It does this by redistributing power. With Blockchain technology, all parties involved in a transaction will have a copy of everything that happens on the blockchain. There will be no central authority over the blockchain but it will keep immutable records of transactions.
While there are many use cases of blockchain technology, not everyone believes that it serves its purpose. Most times, the word is considered as a buzzword that startups use to attract investors. This is why many of these companies have failed to deliver on their promises.
While these 43 startups have not yet delivered a working product, it would be unfair to judge the industry based on their actions. They do not accurately represent the entire industry. MERL Tech may have only investigated a select few companies that aren’t ready to deliver on promises. There are still many blockchain startups that have delivered products or services that add value to users.
Notwithstanding, this research should be a warning to anyone who invests in blockchain startups. Before you rush to invest, make sure you find out if the company can deliver on its promises. Find out if the promises on the whitepaper are achievable or not. Make sure you determine how far your money will go before you invest. If something looks too good to be true, it probably is.