A recent report by the Software Policy and Research Institute, which is associated with the National IT Industry Promotion Agency of South Korea, found that only 22.2 percent of blockchain organizations were able to log sales in 2018.
Raising Doubts About Commercial Blockchain
The findings of the “2018 Software Industry Survey” suggest that despite its popularity, the success in the blockchain space is still yet to happen. In particular, only 44 of 198 (22.2%) blockchain-focused investments included in the survey have generated sales from their new offerings.
It has been reported that although the majority (141/198) of these blockchain companies were involved in IT services, only 16 (around 11.4%) reported sales in 2018. Remarkably, all firms under the internet software category earned sales, whereas 22 of the 50 IT services booked business.
Only 22.2 percent of those in blockchain has reported sales, indicating that the high interest in the market has not yet led to sales results.
It has also been reported that the recent survey results were the worst so far, comparing the harsh statistic results with cloud computing service providers, which achieved 60.2% sales from new software and services last year.
The report further suggested that blockchain does not play a crucial role in the overall technology development. It has found that only 8.4% of new software businesses are engaged in blockchain, compared with 43.5% in cloud computing, 27.9% in big data, and 25% in the Internet of Things (IoT).
The South Korean cryptocurrency also appears to be heroic. In a recent report, Business Korea stated that many local South Korean crypto exchanges are facing bankruptcy because of inadequate transaction volumes. It further stated that only five or six exchanges made it to the top 100 in the world.
Many South Korean startups have also introduced putting their chances at stake abroad, with many listing their cryptocurrencies on overseas exchanges including the United States and Singapore.