Our state and financial system has cultivated itself over many decades and centuries, creating social, political and economic conditions. It is important to orientate yourself on exactly these framework conditions if you want to implement “something”. The blockchain technology and the associated cryptocurrencies are also “something” that at least for the time being has to comply with these circumstances.
The problem, however, is that the technological concept evades the present administrative logic, even diametrically opposed to it. A centralization through the platform economy – see Amazon, Facebook and Google – or by authorities is in contradiction to the autonomous, decentralized self-government through a public and open source blockchain network. Structures that slow a crypto-adaptation rather than accelerate it.
Another obstacle is the massive loss of confidence in the crypto-economy, caused by ICO excesses, scams, lack of user-friendliness and partly questionable added value of use cases. In response to this first crypto-wave that was chaotic and overheated by nature – just think of the dot-com bubble – a need for familiarity has prevailed.
If crypto, then please from well-known companies and public institutions. So we have already reported on the crypto-philistines, who long for more Bausparkassenfeeling and less self-responsibility. These crypto philosophers make up most of our society, which prefer convenient and straightforward solutions from Amazon and Deutsche Bank.
Understandable: A token solution or service in a blockchain network must offer clear added value compared to the central banking or group solution. Tokens and decentralization are not an end in themselves but compete with all existing service offerings. The argument of data autonomy is merely an elitist concept that seriously interests only a very small percentage of our society. What is not easy and economical will not be widely accepted.
But what happens if current crypto offers can not convince the masses? The currently observable path is via a recentralization of the crypto-economy, ie companies and institutions are again becoming more important. Again, more processes are controlled centrally and only a few aspects are left decentralized. An example of this development is EOS. The Blockchain platform is much more centrally organized than most other blockchain projects. The development of EOS does not hurt this, the token is currently ranked 5th between Bitcoin Cash and Stellar. A commercial and pragmatic compromise, especially in the B2B and crypto business.
So it is the private blockchain solutions that are on the road to success. It is precisely IBM’s blockchain solutions that are currently significantly optimizing our export and import – not one of the ERC-20 token platforms that have made an ICO in recent months. As a secure infrastructure to automate processes, engage authorized subscribers, and deploy IoT endpoints, IBM uses the (permissioned) blockchain technology from major logistics companies.
Also in the crypto trade is characterized by a centralization tendency towards the established players. Thus, more and more stock exchange and financial service providers have recognized that there is no interest on the part of the general public to own their private key, ie to be able to be their own bank. The responsibility is better left to a bank than to make sure that the private key is kept safe. In addition, established players have realized that their solutions must be as user-friendly and compliant as possible to appeal to consumers and regulators.
Tendencies that contradict Bitcoin and his motivation. The narrative “Cut out the Middlemen” is currently even farther away than many had hoped. Decentralization is not a linear process. Rather, one step backwards follows two steps forward. In the last few months, we have experienced exactly this regression. One reason to hang your head is not. The potential of the crypto-economy is still the same as it was a year ago. Blockchain and cryptocurrencies will change the world. But it will take much longer than most crypto enthusiasts have thought.