To cut or not to cut – that is the question

In 2017 cryptocurrencies and the technology behind most of them have seen an exponential growth in both their value and adoption. 2018 has shown us that things can go terribly wrong for those who fail to deliver the promised – regulators came to many projects, financing was cut and tears were dropped.

While this might be sad news for some, for the most part mass adoption is still expected to grow in the future. Fintech has already plenty of solutions and applications for the blockchain as a technology. But how not to trap yourself, when you can’t clarify the need of a blockchain? There comes a so-called “Occam’s razor” or “Occam’s rule”. It’s a principle of philosophy, which literally means that “More things should not be used than are necessary”

How we’re going to use it: take the project that uses a blockchain to solve some problem – be it a healthcare, drone, banking, supply-chain or whatever-else-industry – and look for similar solution WITHOUT a blockchain. Does that ring a bell? Because it should do.

Many sectors has hopped on the train of a blockchain hype in 2016-2017 without this simple consideration and here we can see the results. McKinsey's collaboration with the leaders of financial projects over the past two years shows that those who are considering blockchains have doubts.

Mind you, transaction technologies can benefit from the blockchain, in which it can replace the existing system with one that has much less third parties involved, less fees to be paid or more people to be banked. We’ve seen many financial companies partnering with Ripple to create a fitted solution for everyone – but those news came and went, without ever returning to breaking news section. Because most of those institutions has barely used their “custom-tailored solutions”. The concept of Paytomat has been tweaked many times, but our corner-stone has always been a fusion of a world of retail business and cryptocurrency payments. That’s a problem you can’t solve without taking something from each sector – blockchain included. Hence, we took the best of both.

So next time you hear critics talking about blockchain and it’s inability to solve complex issues of financial sector, remember to take a “razor” and see what the truth is.