Why if blockchain is so good, it is still not used in the real sector?

Distributed LabBlogWhy if blockchain is so good, it is still not used in the real sector?

We learned a good lesson 2 years ago when we worked on the technical part of the IDF Reforms Lab’s idea of decentralized auction together with the biggest bank in Ukraine.

The plan was to make the land trade transparent – to prevent corruption/manipulation by trading platforms and create a competitive environment in which it would be impossible to limit the number of trading platforms and censor them on a political basis.

The pilot was ready in a few months, integrated with several new platforms. Nothing foretold troubles. But when we approached existing platforms, a problem arose – their legal departments demanded a contract with SLA/penalties, responsibility for maintenance, updates, security etc. No one reacted on our objections – “There is a blockchain!”. Basically we would either have to create a separate organization maintaining this blockchain or transfer everything to the state that would distribute the software. Both options contradicted the original idea of ​​decentralization and were rejected. The project was terminated.

The idea of the project eventually reincarnated in the private sector, where it began to work successfully – Shelf.Network – but that’s another story.

Pavel Kravchenko
About the author

Founder & cryptographer