Big Four accountancy firm Ernst & Young (EY) has presented research that says that as much as 83% of decentralized applications (Dapps) on the Ethereum network are “not in the most productive uses“.
EY Global Innovation Leader for blockchain Paul Brody had revealed this piece of news during a Fintech Forum hosted by the US Securities and Exchange Commission (SEC) yesterday while talking about blockchain developments and the digital asset industry.
In the opening ‘Capital Formations Considerations’ panel, Brody pointed out that while blockchain tech implementation had seen explosive growth, those that hoped to become disruptors had neglected the early principles of how the tech should be applied to seek solutions to real-world problems rather than mere “money chasing”.
He reminded that capital markets only served to take investments and put it to productive work, which is something the crypto space had not done very well, with most Dapps on Ethereum “maybe not in the most productive uses”.
Citing blockchain analytics company DApp.com’s data from a Q1 2019 report, he said that only 14% of such Dapps were used at crypto exchanges, and the most in gambling (44%) and gaming (13%).
Brody insisted that Dapps should focus on areas such as distributed computing, fractional real estate, new business models, and fractional infrastructure if they truly wanted to create a “tremendous lasting legacy that is positive”.
The forum, organized by the SEC’s Strategic Hub for Innovation and Financial Technology was meant to facilitate the commission’s engagement in the space, and had purposely included blockchain and distributed ledger technology (DLT). Early in May, Bitcoin News had written about the forum, highlighting the fact that many observers had thought this forum to merely be a vanity effort, with some calling it an event “just for show“.
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