Blockchain technology is still in a “proof of concept” phase, according to Morgan Stanley, a financial services company. As the online media noted,
Blockchain technology is still in a “proof of concept” phase, according to Morgan Stanley, a financial services company.
As the online media noted, Morgan Stanley expressed an opinion that the use of blockchain in regular financial settlements is still years away. The white paper of the bank has reportedly commented that there is no “killer app” for blockchain technology.
The white paper has also charted a time frame for the technology`s implementation. In the period from 2014 to 2016, blockchain`s value of financial assets was reportedly assessed. The concept phase took place from 2016 to 2018. The shared infrastructure is supposed to emerge in the period between 2017 and 2020. Finally, assets are said to proliferate from 2021 to 2025.
No “Killer App” for Blockchain
It is true that there are many proofs of concept that are being tested for Blockchain. However, there is still no killer app that has been widely adopted. So, the technology hasn`t been tested in reality.
As the paper said, it is too early for specific investment conclusions. It is expected that the specific investment infrastructure will come in the next year or two, as the article explained.
“Incumbents”, companies that have invested in the use of blockchain technology, are more likely to benefit from it in the future. Some of the examples given are companies like ASX, UBS, BNY Mellon, State Street, JPM and Northern Thrust.
Why cryptocurrencies are soaring?
As the white paper stated, there is no clear explanation for cryptocurrencies being appreciated in value so fast. Some of the factors noted is the growing popularity of ICOs, China` s cheap servers and the rising number of bitcoin exchanges in Japan and South Korea.
Fortune and The Wall Street Journal have assumed that Bitcoin is widely spread in China in a try to avoid monetary controls in the country. However, the white paper didn`t give any clear explanation for the surge in Korea.