Recently, McKinsey and Company published a report titled Blockchain’s Occam Problem. The authors are referring to a principle developed in the 13th century by a Franciscan Friar named William of Ockham. The principle is called Occam’s Razor and simply states that simpler solutions are more likely to be correct than complex ones.
So from the title of this report, it seems the authors are implying that blockchain is a complex solution and that there are simpler ones.
Our objective in today’s post is to refute the McKinsey report. We will do so by quoting statements written and responding. But first…
Who And What Is McKinsey And Company?
Considered the most prestigious management consulting firms in the world, McKinsey and Company was founded in 1926 and headquartered in New York City. Some huge names have interned, worked for, or contracted McKinsey and Company in the past. They include:
- Sundar Pichai – CEO of Google
- James Gorman – CEO of Morgan Stanley
- and many others
My point here is, when a report is published by McKinsey and Company, many people take notice.
But Sundar and Google are going against the report as Google is hard at work on a blockchain system to support its cloud business. You can read more on that here.
And Morgan Stanley seems to have not heeded the report either as they recently hired crypto expert, Andrew Peel as head of digital asset markets. See more here.
So, it seems 2 McKinsey and Company alumni have gone against the report and we would wager many others are too.
The Nasgo Refutation Of The McKinsey Report
The first paragraph of this report has some truth mixed with what seems sarcasm…
“Blockchain has yet to become the game-changer some expected. A key to finding the value is to apply the technology only when it is the simplest solution available.”
It does make sense that a business would use the simplest solution available to a problem. Testimonials from many small businesses who have tokenized on the Nasgo blockchain and some who have created sidechains show that blockchain technology has been a game-changer.
We have watched as consumers have become more loyal and brands are enjoying recognition that has competitors spinning like an out-of-control merry-go-round.
And just this past week, we watched as the top military leader in Cambodia came on board the blockchain. China signed an agreement with Nasgo to have the Nasgo blockchain as the premiere blockchain of that nation. And Palau chose to put their island on the Nasgo blockchain.
And McKinsey and Company says blockchain is not a game-changer???
But it seems the McKinsey Report makes a contradiction just a short way down.
“There is a clear sense that blockchain is a potential game-changer. However, there are also emerging doubts. A particular concern, given the amount of money and time spent, is that little of substance has been achieved.”
World history has been made. Much like the world being able to communicate with each other through internet technology, blockchain IS a game-changer and recent developments are proof. While some blockchain systems may be still sitting at the drawing board, Nasgo is out and achieving amazing things.
And now, we get into a sentence in this report that has no references or proof backing it up…
“It is an infant technology that is relatively unstable, expensive, and complex. It is also unregulated and selectively distrusted.”
How exactly and what is the sign that blockchain is unstable?
If many of the systems who have been hacked and lost thousands, if not millions of data on consumers and users had been using blockchain, the stability would have protected all that data. Payment processing using blockchain has shown to be far more stable than conventional payment processing methods.
As for expensive, again, look at the testimonials of people and businesses who have joined the Nasgo blockchain. The money spent has resulted in enormous ROIs (Return On Investments)
Okay, I will agree that blockchain can seem complex. But experts behind the scenes at Nasgo have taken complexity out of the picture and made everything simple. You need not know coding to tokenize or create a sidechain, and developing and running blockchain decentralized applications (dApps) is not rocket science.
We have experts prepared to guide you through the process and when you do, you will surely admit that it was not complex.
As you read through the rest of this report, you will see sentence after sentence with the author attempting to defend his position, but with the rebuttals I mentioned, he really has no defense.
But, the McKinsey Report speaks some infinite truth in the last paragraph. It is truth that Steve and Eric followed from day 1 in bring Nasgo up and running. And it is truth these 2 have made evident as they continue to strive forward helping any, and all jump on board the blockchain:
“Companies set on taking blockchain forward must adapt their strategic playbooks, honestly review the advantages over more conventional solutions, and embrace a more hard-headed commercial approach. They should be quick to abandon applications where there is no incremental value. In many industries, the necessary collaboration may best be undertaken with reference to the ecosystems starting to reshape digital commerce. If they can do all that, and be patient, blockchain may still emerge as Occam’s right answer.”
Are you ready to bring your business, your brand into blockchain? Just leave a comment with contact info and we will guide you on how to use blockchain to grow your business loyalty, trust and revenues.
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