Blockchain: Why Big Businesses Fail

Baozou Comment : The huge advantages of blockchain technology have never been surpassed, so even traditional large enterprises are actively participating in research and development. However, the advantages of blockchain are based on decentralization and disintermediation, so traditional enterprises that rely on centralized systems cannot fundamentally and fully accept blockchain. Therefore, large enterprises must have mostly failed experiences.

Translation: Annie_Xu

Two major Internet technologies seem to be merging with each other; one can make network services richer and enterprises more efficient (and the effect is remarkable); the other has the ultimate goal of decentralization and disintermediation (no one can judge at present).

Earlier this year, I wrote a short article titled “Race Towards Irrelevance”, and it seems that traditional institutions like my article more, even though their markets and business models are more susceptible to decentralized systems. The article mainly mentioned the impact of blockchain popularization on financial services intermediaries, and the revision of their respective value propositions.

The article does not mention the risks that may be faced by industries outside of traditional enterprises and commerce. As financial services companies continue to pay attention to and invest in the blockchain industry, many global technology suppliers have also begun to seek dominance, which skeptics call an effort to strengthen centralization. I am talking about cloud technology and blockchain technology.

Decentralization is key

I am not saying that cloud computing is not suitable for blockchain infrastructure.

On the contrary, in many cases their combination can increase efficiency, capacity, node security and network load, among other benefits. However, it must be noted that these advantages are insignificant when decentralization is not required.

In fact, we can understand why computer equipment manufacturers are interested in blockchain and why they are competing for the blockchain market.

Overall, I think it is positive for large technology companies to enter the blockchain space. It can solidify the credibility and importance of blockchain. Therefore, we must also support objective judgment on how to deploy blockchain technology to achieve the results we want.

Despite the undeniable capabilities of big tech companies and their systems, it shouldn’t be lost sight of the fact that this new model is designed to eliminate the reliance on trust.

Objectively, this means that blockchain cannot rely on the infrastructure or security of a single vendor.