Today, at the Money 20/20 conference, which apparently had over 5,000 attendees, including more than 2000 companies, MasterCard announced that it has a Blockchain that can run its entire company.
Before you close this window and begin investing more into Crypto, it’s important to make clear that although MasterCard has been working on a proprietary Blockchain for quite some time, they still don’t feel confident that it has enough “real use cases,” to launch.
Mastercard’s vice chair, Ann Cairns, added that this means, what’s most important, is making sure that the benefits of the Blockchain truly outweigh the benefits of the legacy technology.
In doing so, she mentioned examples like proof of authenticity as well as improvements in global trade as current, theoretical use cases that the Blockchain is exhibiting. At the same time, Cairns made clear that there’s still a gap between theory and actual evidence of these use cases causing real change in their respective niches.
On the other hand, MasterCard has also increased their Blockchain-related hires, at least, in their European wing, on top of filing a patent related to technology that aims to establish more efficient data verification processes on the Blockchain.
When all of the facts related to Mastercard’s efforts are taken into consideration, it may be concluded that they believe that the Blockchain industry hasn’t truly reached its growth stage.
By definition, the growth stage of an industry includes the phenomenon in which the top players are clearly apparent and clearly control the majority of the market share. Even more importantly, in a growth stage, profits decrease in importance in favor of research and development and marketing.
With the industry as volatile as it is now and as full of massive ICOs as it is now, it seems apparent that profits are still the primary goal. In connection with this, excluding Bitcoin’s monopoly-like market share due to its status as the first mover, there doesn’t seem to be a clear sign of a group of top players fighting for the remaining pieces of the pie.
If, therefore, this conception of the current state of the Blockchain industry is taken as true, then Mastercard’s current reluctance to launch their product might be easier to understand.
Perhaps, to quote another traditional business concept, they’re just hedging their bets and waiting for the proper window of opportunity which they can use to fully enter the market, and quickly become one of the top players during the true growth stage.
By: BGN Editorial Staff