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Some Companies Prefer 'DLT' To 'Blockchain': Report


A new research report shows that some companies are dropping the word "Blockchain" altogether saying it is over-hyped, and instead prefer "distributed ledger technology" or DLT.

According to Forrester Research's report titled "Predictions 2019: Distributed Ledger Technology", many companies are over-hyping the usefulness of blockchain or using the name of the technology to repackage existing services. The report describes the practice as "blockchain washing."

Networks that are live or under development frequently lack key characteristics that many be regard as essential components of a blockchain. The analysts noted that for some, the mention of blockchain technology carries negative wild west connotations associated with volatile cryptocurrencies.

Further, the report predicts a blockchain winter, suggesting a slowdown in its adoption, but that the technology is moving forward.

The researchers also believe blockchain technology in the near future will be primarily used for the tokenization of assets, which does not involve cryptocurrency.

"On the tools and services side, we'll witness steady but cautious progress. 'Cautious' because DLT hasn't proven to be a significant, reliable revenue stream for software and service providers, and 2019 won't be any different," it said.

Blockchain or DLT is an important new technology that creates tamper-proof records across multiple computers. The term Blockchain has received wide-spread acceptance around the world, with banks and industry giants exploring the technology.

Initially, just adding the term "Blockchain" was enough to boost the companies' fortune. In December last year, the Long Island Iced Tea Corp. had seen its shares surge after it changed its name to Long Blockchain Corp.

In January this year, SEC Chairman Jay Clayton warned that the Commission was closely watching public companies that change their name or business model to something blockchain-related in a bid to cash in on the ongoing cryptocurrency mania.

Earlier, the SEC temporarily suspended trading of Crypto Co. as its stock surged more than 2,700 percent after signing a deal to buy a cryptocurrency data platform.

According to Fortune, a Google search for "blockchain" returns 215 million websites, while distributed ledger technology returns only 1.3 million.

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