Following a recent study by Invest in Blockchain, a cryptocurrency analysis site it has been determined that only 40 of the top 100 cryptocurrencies have working products or provide “real value” to the public.
The recent study focused on the top 100 cryptocurrencies and wanted to determine whether or not sceptics were right to be “cynical about the state of the blockchain industry”. The study was conducted to find out exactly how many of the top 100 were in fact doing what they set out to do.
“We researched the top 100 cryptocurrencies (by market cap) in an effort to learn how many of them actually had working products that are providing real value. The same research done in 2017 may have yielded some truly discouraging results but, even now, the results aren’t exactly stellar.”
What is a working product?
The article produced begins by defining what they classed as a “working product” for the parameters of their investigation. They wanted to looking beyond the actual building and launching of a blockchain as this is too “basic”.
“We evaluated each project’s status, looked at its roadmap, checked its release history, and compared completed features to what the team promises to deliver in the future”.
“A working product is active and available to the public. Its mainnet has likely been released for some time, bumping the version numbers well above 1.0. Businesses and individuals use it on a daily basis for dapps, smart contracts, or digital currency transactions.”
By using the above as their definition for a working product they discount any of the recent mainnet launches, which discounts projects like Tron (TRX). Although these projects now have a usable blockchain, the article states that a “dapp platform that has a mainnet but that doesn’t have any noteworthy dapps on top of it isn’t considered “working” by this criteria.”
The mere existence of a product does not necessarily mean that the product is working
They state that “the mere existence of a product does not necessarily mean that the product is working”. This statement is followed by an invitation for feedback as they understand that their interpretations of the findings may miss certain factors.
The findings are then listed below stating all of the projects which do have a working product. Including projects like, Bitcoin, Ripple, Ethereum, NEO, Monero, OmiseGo, Binance, Litecoin, Stellar and a number of other projects. To see the full list, click here.
The findings certainly make for an interesting read, however, they do forget to take into account the fact that this is still a developing industry. They state that “the same research done in 2017 may have yielded some truly discouraging results but, even now, the results aren’t exactly stellar.”
We presume by this they mean that a year ago, we would have had much lower results. Going back over the cryptocurrency timeline of the past year, a lot has changed and there have been some pretty major developments. Therefore, it could be said that the fact 40% have now developed working products is in fact incredible progress. Let’s not forget that a lot of projects were created last year during the ICO boom.
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