by JP Buntinx
The development of blockchain-based solutions in the financial sector, or any other industry, has little to do with Bitcoin. That is not entirely surprising, as the global mass adoption of cryptocurrency has not taken place yet. A new report by Kuperman LLC goes to show as much as 70 percent of all blockchain startups are not even thinking about Bitcoin right now.
Bitcoin is Not A Top Priority For Blockchain Development
Over the past few years, there has been a significant interest in blockchain technology. Not just by the financial sector, as companies in healthcare and other industries are exploring the boundaries of this technology as well. All of this has lead to investors putting a lot of money into funding rounds. In 2016, slightly over $80 million has been invested in blockchain startups operating out of New York City alone, according to Kuperman LLC.
These and various other findings were published by Kuperman LLC in their Blockchain report. Or to be more precise,the report looks at blockchain startups in New York that go “beyond Bitcoin”. Even though the concept of distributed ledgers gained traction due to the success of Bitcoin, very few companies are actively exploring cryptocurrency right now.
In the Kuperman LLC report, there are some interesting findings that may come as a surprise to a lot of people. Roughly seven in ten blockchain startups have nothing to do with Bitcoin. Instead, they are exploring distributed ledgers for other use cases. These are the companies attracting a lot of investor interest during funding rounds. In particular, middleware and enterprise applications are hot commodities right now.
The shift from Bitcoin to blockchain was noticeable quite some time ago. Many businesses steer away from Bitcoin references in their names or company descriptions. Attracting a global audience is their primary objective, and using the term “blockchain” has a much wider appeal right now. Moreover, since New York introduced the BitLicense requirements, many local companies pivoted to pursuing blockchain ventures.
A Large Focus on Different Areas of Finance
Although most of the New York-based blockchain companies have nothing to do with bitcoin, they still focus on the financial sector. That is not entirely surprising, considering there are many different aspects of finance that can be revamped with this technology. Compliance and security is one area gaining a lot of attention as of late.
But there are banking startups leveraging distributed ledger technology as well. In doing so, these companies can offer alternative financial products and services to their clients. Smart contracts are of great value to these startups as well, as they can make financial transactions more efficient.
For now, the majority of focus remains on enterprise integration, trading & clearing house, and payments. Loyalty programs using blockchain technology can provide a more transparent ecosystem from which the consumer will benefit. Wallet services are being explored as well, both within and outside of the cryptocurrency realm, according to the report.