Blockchain has come to replace the middlemen in the transaction processes while delivering security and immutability, however, corporate adoption is killing the real concept by removing its essential features. The CEO of micro-investment company startup named “Amber” mentioned his concerns in an article published by an online Australian publication SmartCompany on June 25.
Aleksandar Svetski points out that the idea of removing intermediaries while transacting is quite fascinating but the real meaning of blockchain is completely misunderstood. Now it has just become a method of raising capital by the corporations who are simply trying to show their existence in the “hip,” because the projects are not using important element which is “proper proof of work and economic incentives” and just alluring the customers by using the tag of “blockchain powered project or a platform for data storage” which is actually not providing any security and immutability.
“Blockchain without proof of work, economics and game theory is just a glorified database,”
The article also displays his arguments over the use of blockchain and the existence of the Bitcoin network. He clearly rejects the idea of blockchain bases several use cases which are presented by many big and businesses. According to him, Blockchain till date has been only used for ICO’s- a capital raising mechanism which has shown proof of concept element without any genuine implementation of an application neither in the public or private sector. He further shows his anxieties and questions that “these hyped inventions will ever trickle down or just benefit the large-scale organizations and their bottom lines.”
Svetski believes that blockchain is a “broken promise,” and indicates that there is no need of spending billions of dollar on several new networks, instead use Bitcoin because this network is robust and inherently reliable.
He dropped a line marking that:
“Bitcoin blockchain as a unique database architecture which is described as the blocks of data chained together. The Bitcoin network is secure and immutable because it has a currency baked into the protocol… Bitcoin had managed to survive 10 years in an “adversarial environment”