Chinese researchers have cobbled together a report that shows that many blockchain projects don’t last long. According to Bitcoin.com, the report stated that the majority of blockchain ventures average only a little over a year.
The report continued to say that less than a tenth of the blockchain projects looked at were still active. This blockchain project report was released at the International Big Data Industry Expo 2018 in China, presented by He Baohong, the Director of the Cloud Computing and Big Data Research Institute at the China Academy of Information and Communications Technology (CAICT).
Keep in mind that this report doesn’t capture every single blockchain project out there. There will, of course, be exceptions. However, of the projects included in the study, the results they found certainly seem less than encouraging for blockchain startups. The exact scope of the study wasn’t released.
Approximately 80,000 worldwide blockchain projects seem to have been looked at and the study concluded that only 8 percent of them are still active today. Most blockchain projects looked at held an average lifespan of only about 1.22 years.
What’s the issue? He Baohong stated that many blockchain projects start extremely quickly but then die just as quickly. Part of the problem may be that there isn’t enough government support behind blockchain projects.
He Baohong told China Money Network that “In this circumstance, governments are accelerating their efforts to establish unified standards in order to help blockchain projects achieve real-life applications.”
This would indicate that the problem for some blockchain projects is that they fizzle out before they can get their actual working product up and running. Maybe this is because they run out of money, which would be where government support might be helpful.
What do you think? Do you believe the numbers? Think you can come up with a better solution? Let us know in the comments below.
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