244  Blockchain

Why blockchain is not a hoax?

• There has been a lot of hacking and scam about blockchain, especially

on one of its first and most successful use cases, that is, Crypto cur-

rencies. Thousands of people lost their hard-earned savings through

Crypto currency scams. High percentages of people who invested

in Crypto currencies were hoping to become millionaires. The real

problem was the lack of vetting and validation from investors before

investing on the Crypto currencies.

• Multiple exchanges offering Crypto currencies were hacked, losing

millions worth of real fiat currencies. This created a perception about

blockchain technology being not secure. However, this perception is

not valid. The hacking of Crypto exchanges and Crypto scams were

successful due to the lack of education about technology as well as

the lack of regulatory rules and standards. Blockchain technology is

secure, transparent and immutable, but the hacking was successful

due to the lack of skilled employees managing the exchanges, other

technologies vulnerability, social engineering, regulations and gap in

education.

• There are hundreds of new ICO (Initial Crypto Offering) projects are

being launched every month. People invest into them by buying their

coins to support the project delivery. They need to validate and assess

the viability of the projects before investing their money into them. The

assessment of the leadership team launching the ICO as well as project

deliverables is very important. Having said that, not every ICO project

is a scam or unsuccessful. Ethereum was also launched as an ICO, and

people who invested into Ethereum ICO coins (Ether) have gained sub-

stantial capital returns now.

• Regulators around the globe are learning, upskilling and work-

ing on regulating the blockchain market. Once there is an estab-

lished blockchain regulatory framework, customers and investors

will gain confidence on blockchain technology including Crypto

currencies.

• There are also multiple start-ups launching a blockchain smart con-

tract security and audit solutions. This will reduce the fraud and hack-

ing of the blockchain eco-system that relies on automation of business

processes using smart contracts.

Why blockchain is not a hype?

Blockchain is disrupting fintech, heathcare-techs, supply chain, entertain-

ment, estate and the majority of the other industries that need digital iden-

tity, financial transaction transparency, automation, decentralisation and

immutable transaction records. There are so many start-ups and incumbent

players in the market. They are all trying to gain a competitive advantage