A new report by media outlet HardFork has revealed that there is still much more interest from high-profile tech companies in Artificial Intelligence (AI) and the Internet of Things (IoT) than in blockchain technology.
Citing a report compiled by enterprise identity firm Okta, the report states that blockchain technology is currently receiving investment from 61 percent of digital companies worldwide. The report, which was titled the “Digital Enterprise Report,” is the first of its kind from the San Francisco-based enterprise provider and in it, a survey of 1,050 IT, engineering, and security firms all over the world was taken.
The survey was carried out between January and February 2019, with the goal of providing insight into these companies’ utilization of the biggest emerging technologies of this era. The companies were carefully selected, with Okta only going for firms with at least $1 billion in valuation and substantial investment portfolios. Okta specifically took their perspectives from the firms’ “decision makers,” people who are, in one way or the other, “responsible for making technology purchasing decisions.”
In the research, it was discovered that a vast majority of decision-makers still prefer to make investments in IoT and AI. IoT and AI currently receive investments from 72 and 68 percent of respondents in Okta’s survey respectively, while 61 percent invest in blockchain technology.
While blockchain has definitely come a long way from just being in the shadow of cryptocurrencies, it would seem that the concept still has a long way to go before it can become the face of global digital transformation.
AI and IoT had time. Blockchain needs it too
Of course, given the timing, it’s only expected that AI and IoT will surpass blockchain in technological investment. Cryptocurrencies have only been in existence for a decade. The popularity gotten by blockchain technology has surged in even less time. It’s going to take a little more time for blockchain to reach the levels of prominence that AI and IoT have. When it does, investments will grow as well.
In contrast, AI and IoT are established concepts whose potential for expansion has been explored by many people in the past.
The time factor will also play out to the disadvantage of IoT especially. At its core, an IoT system is dependent on centralized networking architecture. With billions of devices set to join the global IoT network in the future, there are bound to be issues with speed, network security, and scalability.
Blockchain, on the other hand, has this figured out already, thanks to the implementation of decentralized networking. All blockchain tech need is time.
Most People still don’t know much about Blockchain
Then, there’s also a lack of information about blockchain tech. A survey by crypto trading site eToro revealed that there was a strong demand for crypto and blockchain education among Americans.
According to the report, the downturn in the crypto market has made people more intrigued in the workings of digital assets, but this demand for education has been left unsatiated as there is an incredible shortage of proper educational materials.
There’s hope on the horizon, however. Last year, crypto firm Blockchain Collective launched the Advanced Diploma of Applied Blockchain in Australia, marking the first foray by the country’s educational sector into blockchain.
The Crypto Knock-on Effect
Another primary reason for this investment gap will have to be the stigma of digital currencies. For all its use, blockchain was first discovered for being the underlying technology upon which digital assets rest. While they’ve been around for a decade now, cryptocurrencies are still not fully regulated in many countries, and in some regions, they’re seen as downright illegal.
To play safe by the law, a lot of companies have been known to steer clear from the path of digital currencies and any other concept related to them- including blockchain tech as well. Again, the solution is the enforcement of clear regulations. Regulatory clarity for crypto assets will yield more acceptance, and this benefit will spread to blockchain tech.