Recent years have seen a huge surge in the number of blockchain projects entering the space, with 871 ICOs raising over $6 billion last year compared to just 29 ICOs raising $90 million in 2016. Already this year there have been 777 ICOs and counting as more startups get on the ICO bandwagon – but not all of them are going to make it.
Since the invention of blockchain in 2008 there have been 80,000 blockchain projects launched around the world, and a report from the Chinese government has found only 8% of those are being actively maintained. The 92% that failed lasted an average of 1.2 years before maintenance on the projects ground to a halt.
He Baohong of the Cloud Computing and Big Data Research Institute under CAICT, a scientific institute under the Ministry of Industry and Information Technology (MIIT) commented on the short lives of these projects at the China International Big Data Industry Expo 2018 in Guizhou, China:
“(These projects) came out very quickly, but die quickly as well. In this circumstance, governments globally are accelerating their efforts to establish unified standards in order to help blockchain projects to achieve real-life applications.”
“We have established verifiable blockchain programs in China, and nearly 200 private enterprises have expressed interests to join,” He added. “(This) will help blockchain technology and industry to become more transparent and open.”
CAICT have also released a report on the top 10 global blockchain industry trends, with six major trends emerging in particular. Increasing integration of the flow of data and the accelerated pace of the growth of digital assets were both positive trends now emerging in the space as innovation and development continues.
As CCN reported, the Chinese government recently published a report ranking the quality of public blockchain projects. Notably, Bitcoin ranked just thirteenth, tying with privacy-centric cryptocurrency Verge. That ranking, unsurprisingly, sparked much controversy among cryptocurrency enthusiasts, particularly after Verge was attacked by a malicious miner for the second time in 2018 alone.