Over 90% Blockchain Projects Don’t Live Longer Than a Year

Over 90% Blockchain Projects Don’t Live Longer Than a Year

According to data collected by Deloitte, last year in the repository on GitHub there was created more than 26,000 new projects related to blockchain.

The new report "Evolution of Blockchain Technology: Insights from the GitHub Platform" was published on November 8. The company presented data from the platform app development, which holds codes for more than 86 000 blockchain initiatives, including such significant projects as Bitcoin. Overall, the study shows the technology development from Bitcoin since 2009.

What does Deloitte report represent?

The Deloitte report shows that 2016 became one of the busiest years for the number of new projects by the blockchain to date. Companies and individual users initiated them. There were created more than 26 000 projects. For comparison, less than 15 000 projects were founded in 2015. The data for 2017 includes only the first six months. However, GitHub has already hosted nearly 25,000 projects in this period.

The report also included data about the most popular code repositories on GitHub related blockchain. Among them, the Bitcoin code repository (unsurprisingly) demonstrates the highest activity: 627 exhibitors and nearly 12,000 subscribers. Go-ethereum (or Geth), a client-supported non-profit organization Ethereum Foundation, attracted 149 participants and 5 603 subscribers.

Inactive blockchain projects

Another critical point in the report - most blockchain projects existing today are dormant. Deloitte explains:

"The stark reality of open-source projects is that most are abandoned or do not achieve meaningful scale. Unfortunately, blockchain is not immune to this reality. Our analysis found that only 8 percent of projects are active, which we define as being updated at least once in the last six months."

The projects have a "positive differentiator" from projects created by users. Among the latter there was enabled only 7% of projects, whereas among organizations similar figures reach 15%.

Blockchain trends in different regions

The report also provides a geographical view on the development pace of the blockchain in different areas. So it is noted that most owners of the repositories on GitHub related blockchain, based in San Francisco – 1 279 users and 101 organizations. London ranked the second place with 919 projects, and then New York followed with 774.

"It is also worth noting the high level of activity in China, specifically, Shanghai and Beijing. In both of these cities, most of the projects pertain to cryptocurrencies and cryptocurrency exchanges, with an emphasis on scalability."

It was a remarkable year for the blockchain technology in financial services, especially for cross-border payments and trading areas. Broad use of the blockchain outside of the finance sector increases, especially in spheres as government, healthcare and the management of supplies.

The Deloitte report shows that 2016 became one of the busiest years for the number of new projects by the blockchain to date.

The blockchain technology could change the processes and systems industries. It has the power to exclude trusted third parties, reduce costs and ultimately increase profits of various players in the industry.

However, this is not a single universal solution. The use cases should meet the characteristics and requirements of technology, such as security, decentralization, and dependence on the Internet as the basis.