What is going on with the blockchain?
Things have become quiet around the great hope of the financial world: the blockchain. Find out in the article how the technology, celebrated as revolutionary, is doing.
At the end of 2017, blockchain technology rapidly gained importance as the price of the digital currency Bitcoin rose to over 20,000 dollars. Suddenly everyone was a small blockchain and crypto expert. Lately, however, it has become quiet around the new technology.
First hype is over
Investments in start-ups dealing with the block chain have fallen sharply in recent times. While in 2018 there were still around 800 deals with a total amount of around 4 billion dollars, in 2019 the figure was only around 1.6 billion dollars. Especially in Europe the hype has levelled off. Although various companies, such as Daimler or Bosch, are running block chain projects, the topic is not within the focus of the general public anymore. The situation, however, is quite different in China: the number of companies with blockchain in their name this year amounts to about 10,000, despite (or because of) Corona. With the E-Yuan, the Asian state aims to become the world market leader in the field of block chain technology.
Enormous potential
Despite the flattening investment figures, the block chain market also offers great potential in western regions. The corona crisis in particular could make the technology more important again. Various researchers are of the opinion that increased transparency and efficiency in the movement of goods through the block chain has the potential to slow down pandemics. At the end of March 2020, the WHO joined forces with technology companies such as IBM and Microsoft to develop a data platform to combat the virus with the help of the block chain.
Politics and legislation are slowly catching up
A big stumbling block in the path of blockchain technology is the lack of regulation. The mills of legislation grind slowly but steadily. In June 2020, the Swiss National Council gave the green light for the creation of suitable framework conditions for blockchain technology. For example, it supports the creation of a new category of permit for the commercial operation of DLT (Distributed Ledger Technologies) infrastructures. In addition, the separation of crypto-based assets from the bankruptcy estate are to be clarified by law.
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