At this week’s Consortia 2019 conference for
blockchain trade finance, there was talk that the sector is in the “trough of disillusionment” in
Gartner’s Hype Cycle. The four blockchain consortia – komgo, Marco Polo, Voltron and we.trade – face several headwinds. The first is the difficulty of operating a consortium, especially with bank participants. Another is the delicate balance of establishing standards without stifling competition or accelerating commoditization. And for the two consortia in the “soft” launch stage, we.trade and komgo, there’s the urgency of getting traction.
While unbridled enthusiasm is a thing of the past, the tone of the event was still upbeat. However, the word “pragmatism” was mentioned often.
Before exploring the challenges, it’s worth establishing the goals of the consortia. Andrew Speers from Natwest (part of
Voltron) was forthright. “The system is broken,” he said. “SWIFT hasn’t done anything other than GPI in 25 years. We as an industry have an obligation to solve these problems for corporates because we’re facing huge disruption from people who are making their lives much easier.”
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Image Copyright: consortia 2019 Valerie von Lucke Andrew Speers Baptiste Audren / Ledger Insights
