By Andy Hao
Updated on May 28, 2019, 10:59 AM
What Is The Most Overhyped Aspect Of The Crypto Industry Today?
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During the recent NYC Blockchain Week, Longhash asked a handful of influential crypto leaders for their opinion on the state of the crypto industry, and more specifically, which aspects of the industry they believed to be the most over-hyped.
Here’s what they had to say.
Erik Voorhees, CEO of ShapeShift: I think corporate closed blockchains remain the most overhyped. I’m not aware that any have been successfully used, and they kind of destroy the point of why blockchains are useful in the first place. That’s not to say they don’t have any value, but I think they are overhyped.
Tyler Spalding, CEO of Flexa: Anything where people are talking about decentralizing something. When that’s your lead, it’s generally probably hype. You need to look at what decentralization means, what crypto means, what is the real value of it. Centralized databases work really well, really performant.
So if you’re creating a new system, what does that truly bring to someone, rather than just your project where you’re recycling a technology. Truly, what does it actually do and why does it need to exist? Anyone that isn’t talking about that, or you see phrases and other things that are decentralized this or that, generally it’s a lot of hype.
Justin Sun, CEO of TRON: I think the most overhyped aspect is that we always believe crypto is going to change everything. Still, I think the most impact will happen in the decentralized technology and finance, not everything, because recently there’s been lots of IEOs coming, lots of the traditional industries that have had nothing to do with crypto, they’ve started to issue coins, just like in 2017. So I think if we want to look at a project, we look at what’s the real utility for the token.
Tone Vays, Crypto Analyst: Smart contracts, I think, are grossly overhyped. Smart contracts are great – a soda machine is a smart contract: you stick in a dollar, you get a bottle of water.
It’s a great smart contract, but there is no reason to have that contract be so grossly, technologically inefficient that it takes global electricity power and decentralization, of storing this contract on hundreds of thousands of computers, in fear of somebody forgetting that this contract took place and computational power. Smart contracts just don’t need the inefficiency of decentralization, and I think that area is grossly overhyped.
https://www.longhash.com/news/what-is-the-most-overhyped-aspect-of-the-crypto-industry-today