Blockchain technology, which underpins cryptocurrencies, was described as having ‘no meaningful use cases’, in a meeting with British MPs.
The House of Commons Science and Technology Committee on Blockchain met with experts in the field to discuss uses of the technology amid widespread turmoil in the crypto sector.
Technology journalist David Gerard, author of Attack of the 50-Foot Blockchain spoke to MPs at Portcullis House near Westminster to assess the technology in terms of its “benefits, limitations and key considerations for policymakers”, Yahoo News reported.
Gerard was scathing about the technology, saying, “Blockchain technology provides security for things that don’t need securing and are not a problem and a lot of the innovation started from the technology and then they sought to find problems they could solve with it.”
View from the City
The discussion came against the background of steep price falls across the cryptocurrency sector.
Cryptocurrency exchange Coinbase (COIN) laid off 18% of its staff in the wake of the collapse of algorithmic stablecoin Terra which sent shockwaves through the sector.
According to TipRanks’ analyst rating consensus, Coinbase stock comes in as a Moderate Buy.
Out of 21 analyst ratings, there are 14 Buy recommendations, four Hold recommendations and three Sell recommendations.
The average Coinbase price target is $131.79, implying an upside of 164.90%. Analyst price targets range from a low of $290 per share to a high of $45 per share.
Uses in Ukraine
Gerard dismissed widely cited uses for the technology, where blockchain can be used to securely store information – such as tracking supply chain data.
He said, “A distributed ledger that cannot be altered is good, but how do you know the data going into the blockchain is good. It turns out crooks can fake info digitally as well as on paper.”
His views were echoed by Izabella Kaminska, editor of The Blind Spot – but Kaminski pointed out uses of the technology in “low trust” societies such as Ukraine, where cryptocurrencies have at times been able to deliver funds faster than legacy banking systems.