The vibe at a gathering this week for blockchain enthusiasts felt
decidedly less exuberant than its predecessor a year ago after dizzying
swings in bitcoin.
Last year's Consensus blockchain conference took place just four months
after the virtual currency hit almost $20,000, spawning a legion of
bitcoin millionaires who rode in swanky luxury cars and partied in
over-the-top soirees.
Despite bitcoin's latest bounce, this year's gathering, again held at a
hotel in New York, featured less ostentatious displays of wealth and a
more sober sensibility.
The shift is partly a reflection of bitcoin's dramatic price swings, as
well as a sign of the evolution of blockchain technology into more
real-life, less trendy applications.
"It's definitely less buzz, less show," said Wes Fuldord, chief
executive at Bitfarms Technologies, a cryptomining operation based in
Quebec. "But it's reflecting signs of a more mature market."
Blockchain is a digital ledger that is the underlying technology of
bitcoin with broad applications in finance and many industries that
permit multiple users to share data and information in real time. The
technology is considered secure because the data cannot be altered.
"In 2018, we just had a lot of powerpoint presentations," recalled
Francois-Xavier Thoorens, founder of blockchain company Ark. "This year,
we have real products."
Display stands at the event included a Deloitte product of three screens
that employs blockchain for cybersecurity, and an application from
startup Riddle & Code that authenticates expensive watches.
Speakers included representatives of Pfizer and AstraZeneca, who
discussed blockchain applications in pharmaceutical research, and
Microsoft, which is marketing a blockchain-based "decentralized
identity" to secure personal data.
Attendees also discussed solutions to manage the ownership of digital
assets and the various legal and regulatory issues that have surfaced.
This year's conference, sponsored by the digital media company CoinDesk,
follows a turbulent year for bitcoin, which bottomed out at $3,200 in
December in a decline that sparked skepticism on the potential of
blockchain.
- Mysterious bitcoin rally -
The recent rally in bitcoin -- doubling to $8,000 from $4,000 in late
March -- failed to push conference attendance to the 2018 count of
8,000. This year's event drew just 4,800 people.
The volatility in bitcoin prices as especially troubling for some
observers. Fuldord said some smaller players have exited the market,
leaving it to more established companies.
"Some of the hype has slowed down in the back of price weakness in 2018," Fuldord said.
Some blockchain experts have questioned whether the latest rise in
bitcoin as a result of financial market uncertainty due in part to
protracted US-China trade talks, with investors seeking "refuge" in the
crypto market.
But for many the rally in the digital currency remains a mystery.
"We're still at the stage with bitcoin of alternating between euphoria
and despair," said Thoorens, adding that more attention from regulators
should with time lead to a more normalized market.
Thoorens noted that the crypto universe has come a long way from one
that only two years ago could lead to banks closing an account linked to
a crypto trading platform.
"All technologies go through the same steps, from fringe, to frontier,
to mainstream," said Margaret Rosenfelds, an attorney who specializes in
blockchain at K&L Gates.
At this point, finance is the most seasoned when it comes to understanding cryptocurrencies and using blockchain, she said.
But many other sectors are looking at applications, and devotees still
expect to see growth is expected, even if the technology remains a bit
abstract to a non-specialist.
Comparing it to the technology underlying email and many other
now-common applications, Rosenfelds said, "The average person don’t need
to understand how it works to adopt and use it."
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