Companies are distancing themselves from over-hyped ‘blockchain’

Companies are reluctant to adopt the blockchain as a term because it has been overhyped, according to a new report from Forrester Research.

Rather than risk being associated with a technology that has become a buzzword across several industries, reports Fortune, companies are now labeling projects with ‘distributed ledger technology’ (DLT) to avoid getting lost in the blockchain shuffle.

As with any new technology, companies are taking advantage of its trendiness and simply attaching the term to existing products and services in order to repackage them and make them seem more relevant.

“The networks that are live or under development vary greatly and frequently lack key characteristics that many regard as essential components of blockchain,” the report reads.

“On the tools and services side, we’ll witness steady but cautious progress. ‘Cautious’ because DLT hasn’t proven to be significant, reliable revenue stream for software and service providers, and 2019 won’t be any different.”

The study also concludes that the negative reputation of cryptocurrency caused by its volatility,  lack of regulation, and stories regarding its use in criminal activity, may have also impacted the perception of its underlying technology.

Analyst and co-author of the report Martha Bennett said: “There are parallels with the internet but what’s different is that, with the internet, a single company like Amazon or eBay can aspire to do something and create a big change. Blockchain is different because if one company says ‘I’m going to do something’, it doesn’t matter. This is an ecosystem play.”