Research: Blockchain Receives Less Investment Compared to AI and IoT
- Written by TechXO Team
- Category: BlockChain
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Blockchain is becoming a rising force within the tech industry. Given the high level of security and encryption it can offer, it is a well-known system that is being applied popularly by companies dealing with cryptocurrency. Companies like Facebook and PayPal are even looking into Blockchain technology in order to make their own innovations. However, while Blockchain’s growth is no laughing matter, it seems as if the encryption tech is receiving less attention from investors compared to AI and IoT.
Media outlet HardFork has published reports that have revealed that there is still great interest from relevant tech companies towards Artificial Intelligence (AI) and the Internet of Things (IoT), compared to that of blockchain technology. Referring to a report gathered by Okta, an enterprise identity firm, it states that Blockchain tech is only receiving investment from 61 percent of digital companies worldwide.
The research revealed that a big majority of decision-makers still prefer to make investments in IoT and AI. Both AI and IoT receive investments from 68 and 72 percent of the digital companies that participated in Okta’s survey respectively, while 61 percent invest in blockchain technology.
Where did Blockchain go wrong?
Although it is undeniable that Blockchain has definitely come a long way from being in the shadow of cryptocurrencies, it seems that the concept still has a long way to go before it can become the face of global digital transformation. One of the main reasons is that AI and IoT had time to get recognized by investors. Blockchain needs that as well.
Given the timing, it is rather clear that AI and IoT will surpass blockchain in investments by major tech companies. It has only been a decade since cryptocurrency has entered the spotlight. The popularity received by blockchain technology has grown significantly in even lesser time. Therefore, it is going to take more time for Blockchain to achieve the extent of relevance that AI and IoT have right now. When it manages to do so, investments will grow naturally. Conversely, AI and IoT are concepts that have already been established. This means that their potential for expansion has been explored by many people in the past, lowering the probability of further investment.
The factor of time will ultimately end up to the disadvantage of IoT especially. At its core, the systems of IoT are dependent on a centralized networking architecture. Given that billions of devices will ultimately join the global IoT network in the future, be issues with speed, network security, and scalability will most likely occur, putting IoT at a disadvantage. However, Blockchain already has this figured out. Thanks to the implementation of decentralized networking, the only thing blockchain tech needs is time.
There is also the problem of a lack of information regarding blockchain tech. A survey by crypto-trading site eToro discovered that there was a strong demand for Americans to be educated in crypto and blockchain tech. According to the report, a lot of Americans have become interested in the inner workings of crypto and blockchain. However, since there is a lack of teaching resources and materials, this demand has been left unanswered.
The problems that Blockchain is facing is easily remedied if it was given time to establish itself within the world of technology. Although it is also necessary to educate people about the system and how it works, it is also equally important for Blockchain to continue making itself relevant in order for it to garner attention. Given a few months to a year, investors will be able to see the value of the tech system and ultimately invest in hopes of innovating Blockchain and creating more uses for it.