Nouriel Roubini Now Trashes Blockchain Technology as Slow, Cumbersome
After claiming that crypto coins cannot be money, and are too slow, economist Nouriel Roubini is now bashing the blockchain technology itself.
Blockchains are more or less useless, believes Dr. Nouriel Roubini, as he shared recent articles on the challenges facing startups. Until now, Roubini attacked the economic claims of digital assets, but he moved on to the blockchain technology itself.
The skeptical previews come just days after China’s president Xi Jinping announced the country would seize the opportunity to use blockchain technology. However, a use case backed by a government is quite different from purely token-based startups or community-based coin projects.
Propy, a project aiming to record Vermont land deals on the Ethereum blockchain, faced deflated enthusiasm for its product.
“In 2017, it was enough to have blockchain technology and everyone reaches out to you,” says Nataliya Karayaneva, the founder of Propy. “But now working with traditional investors, we actually avoid the word blockchain in many of our materials.”
Even IBM has limited the impact of its blockchain development. The technology is used as a shadow ledger, as verification for an already existing record.
When it comes to supply chain use cases, a new research suggests that “blockchain fatigue” may hit as soon as 2023.
Multiple projects have attempted product tracking through blockchain records, including NEM (XEM), which tracked Japanese food sources. VeChain (VET) did the same for luxury products, verifying their authenticity. However, those applications were relatively limited.
“Supply chain blockchain projects have mostly focused on verifying authenticity, improving traceability and visibility, and improving transactional trust,” said Alex Pradhan, senior principal research analyst at Gartner. “However, most have remained pilot projects due to a combination of technology immaturity, lack of standards, overly ambitious scope and a misunderstanding of how blockchain could, or should, actually help the supply chain. Inevitably, this is causing the market to experience blockchain fatigue.”
But blockchain applications still manage to carry some value. Decentralized finance and the technology of stablecoins has taken off in 2019, riding on the back of the fintech trend and the attempts to offer easier on-ramps for retail investors.
Bitcoin (BTC) also boosted its mainstream presence, as the Bakkt exchange already built up $1 million in open interest about a month after its launch. This is still small in comparison to the mainstream financial sector, but some use cases for digital coins remain highly important.