Blockchain lacks meaningful utility cases, technology journalists tell British lawmakers

Two journalists had a test on blockchain technology during a select committee in Westminster yesterday, June 29, Yahoo Finance reported.

In an inquiry to the House of Commons Science and Technology Committee, which met in Portcullis House near the Houses of Parliament, technology journalist and author David Gerard suggested that the blockchain has no significant use cases.

According to him,

“Blockchain technology provides security for things that do not need security and that are not a problem, much of the innovation started from the technology and then they sought to find problems they could solve with it.”

Izabella Kaminska, the founder of the media company The Blind Spot, also believes that the blockchain lacks meaningful applications. Kaminska pointed out that the blockchain does not ensure data accuracy despite the fact that it is immutable.

She explained that the blockchain only registers information fed into it. According to Kaminska, the only way to verify the accuracy of blockchain data is by having trusted intermediaries review it.

Kaminska said that the quality of blockchain data is only as good as the source.

“if rubbish goes in, then rubbish comes out.”

Nothing beats human inspection

Gerard – who authored Attack of the 50 Foot Blockchain: Bitcoin, Blockchain, Ethereum & Smart Contracts and Libra Shrugged – believes in the premises of an immutable distributed ledger. However, he reflects Kaminska’s feelings about blockchain data. According to him, criminals can falsify information on digital and paper.

Although blockchain supporters point to its use in chain supply systems, Gerard said nothing could beat human inspectors who understand the industry and know how to detect potential fraud. He argued that if the blockchain needs third parties to verify data fed into the system, it invalidates claims that the technology is a viable alternative to traditional systems.

While Kaminska said she could not think of a single success story regarding the blockchain, she claims that the technology is useful in low-trust societies. She gave the example of Ukraine and said that the crypto industry has managed to deliver funds faster than the traditional financial sector.

According to her, the blockchain could also benefit nations affected by hyperinflation in domestic currencies. However, she believes the blockchain should not be the standard in finance.