BCG: One Chain To Rule Them All

04 Oct 2019 by rate3

In yesterday's post I compared BCG and McK's "track-records" in DLT and mentioned that BCG's views on blockchain future although more optimistic than those of McK are "one to rule them all"-like. However, I didn't mentioned why BCG analysts reached that conclusion. Here are three main BCG's arguments for the world's ultimate one-corporate-chain solution.

First: "An Inherent Inefficiency". BCG authors believe that the present state of DLT when "even the fastest fully functional public blockchain is too sluggish for activities such as payment processing at scale" will not be changed until one big corporation takes over and put immense resources in developing fastest centralized alternative.

Second: "The Lack of a Leading Public-Blockchain Platform". BCG states that Bitcoin is gradually loosing its "first mover advantage" to "several competing blockchains, such as Ethereum and Hyperledger", which will prevent all of them to achieve "the scale and network advantages of becoming a platform, as Amazon".

Third: "A Go-Slow Approach". Basically, according to BCG, small and medium sized private as well as big public blockchain will be gradually stalled in their technological development by the depletion of funds, slow deployment of additional capital and absence of the long-term strategic financing.