Why blockchain isn’t broken—the business models are
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> Why blockchain isn’t broken—the business models are
The blockchain, Bitcoin’s beating heart, is often blamed when crypto projects falter or adoption stalls. Critics point to slow transactions, high fees, or energy use and declare the tech itself flawed.
However, the blockchain isn’t broken; the business models built on it often are. The technology works as intended; it’s the human layer that’s misfiring.
The blockchain’s promise holds steady
At its core, blockchain is a decentralized ledger, secure, transparent, and immutable. It’s not perfect: base-layer transactions on the BTC blockchain can be sluggish (about seven per second), and fees spike during congestion pricing out most people in the digital economy. Yet solutions like the Lightning Network allegedly prove BTC can scale when paired with smart engineering. The bolted on side network tech allegedly delivers on its promise of trustless, censorship-resistant value transfer. So why the griping?
Business models miss the mark
The real culprits are the shaky ventures layered atop blockchains. Take the 2017 initial coin offering (ICO) boom. Thousands of startups raised billions on whitepapers promising “blockchain everything,” from decentralized cat apps to tokenized real estate. Most flopped, not because blockchain failed, but because their models were unsustainable. They chased hype over utility, burning cash on marketing while delivering little value. Even today, many digital asset businesses lean on speculation pump-and-dump tokens or non-fungible token (NFT) fads rather than solving real problems.