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Profitsow.com Review: The Truth About This Investment Platform [Revealed]
Profitsow Reviews: A legit investment or another scam? Read our reviews to see what experts have to say about Profit Sow Investment. This website promises to grow your capital. Is Profitsow.com a reliable investment? You may have come across many systems on the internet promising you quick fortunes, the truth is that majority of them turn out to be scams.
In this review, we provide you information based on our investigations and user experiences to help guide you make the proper decision.
HAVE YOU BEEN SCAMMED? If you have lost your money to online scammers, there is an opportunity you could get back your money.
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What Is Profitsow.com- Is ProfitSow Paying?
Profitsow.com is the new investment platform swooning heads with its enticing investment offer. According to the words on their homepage, this investment is structured like a game. All you need to do is plant virtual tree and earn real money. This is how it works-
”ProfitSow is an online browser game in which you can have your own virtual trees. You can buy or earn gold to plant trees, your trees produce fruits every hour that you can then exchange for more gold, you can reuse the gold to plant new trees or convert them into real money to withdraw by PayPal or Payeer”
However, apart from the words on their website there are no proofs or graphs to this claim. There is nothing to make us believe they will keep their end of the bargain. Their website is pretty convincing, and has seen many people registering to the platform.
Should you invest with profitsow.com? Is this investment game genuine or fraud? We hope to answer these questions. Meanwhile, always have it in mind that some platforms might try to convince you to invest in this platform. However, the truth is that they might not be concerned about your end, rather they are keen on their commission as an Affiliate partner.
So, take your time to go through this review. We bet you’ll find concrete reasons that will help you make a decision about this platform.
Profitsow.com Scam Review: Disturbing Things Found
Though this site might appear legit to an untrained eye, the truth is that it is just a wishy washy Ponzi just like Flamebit, it is designed in such a way to convince unsuspecting investors.
They are trying every means to make this platform look legit but this is simply a marketing strategy meant to make you lower your guard. When we went through their entire website, we couldn’t find any raw data about the strategy they follow or the performance reports of their so called expert traders. None of their achievements are documented and worse of all, they do not have any specific mandate to follow.
profitsow.com is like every other HYIP. It is a just a type of ponzi scheme. Initial investors only get paid when new people sign up and invest, what this means is that you are under pressure to bring in new investors so that you will get paid. As soon as the amount of new investor drops, the owners do away with the money invested.
There are a lot of investors attesting to this fact that after the first few days, this platform stops paying, and leaves their transaction at ‘Pending’
Just like we said before, Those that benefit most times are the first investors. However, the system is not sustainable because it will surely shut down abruptly leaving your money trapped in the hands of the scammers that set it up initially. Why spend your time on HYIPs when there are other legitimate and sustainable ways of making money?
Reasons Why profitsow.com Is Not an Ideal Investment Platform For You
Many HYIP monitors wouldn’t tell you how this system works, even trusted hyip monitoring sites wouldn’t be quick in telling you that some of these HYIPs have a very very short span life. Below are reasons why we think it is not the best investment for you-
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- profitsow is unpredictable. The returns are unrealistic. Common, how would they be able to keep shooting out that amount?
- We couldn’t come up with those behind this platform, notwithstanding the extent of our thorough investigation.
- profitsow.com works with some HYIP monitors. Their affiliate program is lucrative, so even top 10 trusted hyip monitors would promote. Hey! don’t let your guard down.
- There are no Financial Authority acting as a watch dog over their actions, so they are not bounded to any regulation, and could do as they please with your hard earned money.
You might probably think you should give it a try, but the truth about investment platforms like this is that, they have smooth talkers that would make you invest more than you bargained.
You might end up registering for more than one plan. Because, common it is the nature of humans to want the best. By the end of the day, you are left dry and empty, another sob victim.
Is Profitsow.com a Scam or Legitimate Investment?
Though they provide a registration certificate and so-called evidence of payments, don’t be deceived, anybody could get a sham address and certificate most especially from the Company House in UK which most of them use, for just £5. These companies claiming to be located in the UK or similar countries like the USA are not in actual sense located there.
Sometimes these platforms might pose as an investment platform, doubler platform or even a mining platform. Often times they might run an ads through the google ads academy or even get a youtube ads making them look legit. But the truth is that they do not have the equipment that make them what they claim to be. Rather what they do is circle the funds of investors, and when they have made a lot of unsuspecting investors trust them, they stop paying.
The truth is that even the longest paying hyip would one day flop. The system is not sustainable. Why waste your time and money when there are legit and paying bitcoin investment sites? You could even start forex trading with the help of trusted brokers.
profitsow.com is not a trusted Investment Platform
How To Know Investments Scam Formats
It is true that most of this high yield investment platforms look like the real deal, thus confusing us.However, there are various ways to find out if an investment platform is a lackluster HYIP or if it a trusted investment platform. Below are ways you could find out-
- ROI- The returns offered. Are they sustainable? Can the funds be shuffled round and get to every investor? are the offers realizable?
- History- Does the platform have a history? Can the company behind it be found online?
- Transaparent– How transparent is the information on the website?
- Contact– Can you reach them? Is the address made available on the platform?
Everyday we get complaints of people been scammed. Most people fall for these schemes because of the sweet promises of making huge profits within a short time. .On a serious note, legit systems exists but scams are very very numerous. So you need a guide to help you make a good decision. We have made it our duty, by exposing scams.
They are lots of online investment opportunities which could fetch you money and give you a good Return On Investment. We constantly search them out to guide our readers so they don’t fall for scams. Always feel free to interact with us in the comment section.
Justin Trudeau Bitcoin Era Review and Results 2020
Justin Trudeau’s Latest Investment Has Experts in Awe And Big Banks Terrified.
Canada citizens are already raking in millions of dollars from home using this “Bitcoin Era” – but is it legitimate?
(ABC News) – Canadian politician Justin Trudeau has made a name for himself as a brash straight-talker who doesn’t mind being honest about how he makes his money.
Last week, he appeared on The Project and announced a new “wealth loophole” Bitcoin Era which he says can transform anyone into a millionaire within 3-4 months. Trudeau urged everyone in Canada to jump on this amazing opportunity before the big banks shut it down for good.
And sure enough, minutes after the interview was over, National Canada Bank called to stop Trudeau’s interview from being aired- it was already too late.
Here’s exactly what happened:
The Project co-host Waleed Aly invited Justin on the show to share any tips he had on building wealth and the Canadian politician dropped a bomb:
“What’s made me successful is jumping into new opportunies quickly- without any hesitation. And right now, my number one money-maker is a new cryptocurrency auto-trading program called Bitcoin Era. It’s the single biggest opportunity I’ve seen in my entire lifetime to build a small fortune fast. I urge everyone to check this out before the banks shut it down.”
The Project co-host Waleed Aly Waleed Aly was left in disbelief as Trudeau pulled out his phone and showed viewers how much money he’s making through this new money-making program that now has everyone in Canada whispering.
The segment ran out of time before Trudeau could elaborate, so we got an exclusive interview with the man himself to learn more about this controversial opportunity.
ABC NEWS EXCLUSIVE WITH BITCOIN ERA JUSTIN TRUDEAU
“You may have heard about this new cryptocurrency investment platform called Bitcoin Era that’s helping regular people in Canada, Asia and North America build fortunes overnight. You may be skeptical because it sounds too good to be true.”
“I get that because I thought the same thing when a trusted friend told me about it. But after seeing with my own eyes how much money he was making, I had to try it for myself.
I’m glad I tried it because it was some of the biggest and easiest money I’ve ever made. I’m talking tens of thousands of AUD a day on autopilot. it’s literally the fastest way to make a windfall of cash right now. And it’s not going to last for much longer when more and more people find out about it. Or when banks shut it down for good.”
WHAT EXACTLY IS BITCOIN ERA AND HOW DOES IT WORK?
The idea behind Bitcoin Era is straightforward: To allow the average person to cash in on the cryptocurrency boom which is still the most lucrative investment of the 21st century, despite what most people think.
Although Bitcoin price has dropped from it’s all time high of $20,000 per Bitcoin, traders are still making a killing. Why? Because there are thousands of other cryptocurrencies besides Bitcoin that being traded for huge profits on a daily basis.
Some of these cryptocurrencies include Ripple, Ethereum, Monero, Zcash and Ripple and they are still making returns of over 10,000% and higher for ordinary people in Canada.
Bitcoin Era lets you profit from all of these cryptocurrencies, even in a bear market. It uses artifical intelligence (AI) to automatically handle long and short selling for you so you can make money around the clock, even while you sleep.
Bitcoin Era is backed by some of the smartest tech minds to ever exist. Richard Branson, Elon Musk and Bill Gates just to name a few.
Bill Gates and Richard Branson discuss Bitcoin Era at CES 2020.
These tech geniuses have built multi-billion companies on solving complex issues like online payments, computing, and transportation. Now, they’re tackling on the global problem of wealth inequality by letting anyone – no matter how rich or poor they are – make enough money to enjoy a happy and fulfilling life.
THE LUCRATIVE MONEY-MAKING SECRET BIG BANKS DON’T WANT YOU TO KNOW
Justin Trudeau goes on,
“We’re seeing hard economic times, and this is the solution people have been waiting for. Never in history have we had such an amazing opportunity that ordinary people can easily take advantage of to generate tremendous wealth in such a short time.
Some people are hesitant to try this because it’s so different. And that’s because the big banks are trying to cover this up! The big banks are actively creating propaganda and calling cryptocurrencies and platform like Bitcoin Era a scam. Why? They are worried their corporate profits will shrink once their customers know how to create massive wealth themselves.
The truth is, cryptocurrency is the revolution of our lifetime and anyone who does not jump on this opportunity is missing out. I’ve already received angry calls and threats from big financial corporations because I’m bring this technology to people’s attention. But screw them. People in Canada are already starting to know the truth and it’s only a matter of time before more and more do.
I’m sharing this because I’ve also received hundreds of emails from people thanking me for sharing this secret. My favorite one is from a young man who bought his little brother his dream car – a Ferrari 488 Pista using the cash he made from Bitcoin Era. This platform is truly making the lives of everyone in the world a little better.”
Steven Baker used the profits he earned from Bitcoin Era Pro to buy his little brother his dream car. What an inspiring way to use wealth for good!
DOES BITCOIN ERA REALLY WORK? WE TEST IT OURSELVES TO OUT
Our senior editors wouldn’t let us to publish the interview with Justin Trudeau until we verified that Bitcoin Era is a legitimate make-money-from-home opportunity. Our corporate leadership did not want us releasing any information that could potentially cause citizens of Canada to lose their hard-earned money.
So our editorial team tested Bitcoin Era to make sure it actually works like Trudeau described. One of our online editors, Zachary Tisdale, volunteered to risk his own money and test out Bitcoin Era.
Zachary is a 53-year-old father of 2 boys whose wife lost her job last year due to illness. He admitted he was struggling financially and this investment opportunity could be the answer.
Zach’s family was struggling to make ends meet and hoped that Bitcoin Era could relieve his the financial pressure, so he decided to test the system and report his results
“At first, when I heard the interview with Trudeau , I thought he was joking. Making money from home is only a dream. I decided to try it anyway given my financial circumstances- and for the sake of good journalism.
I watched an introductory video about the platform and then signed up. The video seemed to be over-promising but I put my skepticism aside. Within a few hours, I received a call from my personal investor. He answered all questions and doubts I had, and assured me I was going to make money. Period.
My personal investor even promised that if I lose even a single dime, he would promptly refund my $350 AUD deposit. That’s how confident he was this was going to change my life. Now that’s customer service beyond anything I’ve seen and no wonder banks are scared.
Once I received access to the platform, I deposited my initial investment of $350 AUD. That’s about is what my family spends on junk food every month, so I decided to stop taking us to fast food for a month. Now we can be healthy, plus have the opportunity to get rich.
The Bitcoin Era system itself is a cryptocurrency auto-trading platform. The software uses advanced AI algorithms and machine learning to predict exactly when cryptocurrencies will go up and down. Then it will automatically buy and sell for you around the clock. Technology has already made our lives easier in every possible way, so why not use it to make more money as well?”
ZACH’S REAL TIME RESULTS WITH THE SYSTEM
“Within 1 hour of depositing $350 AUD, the software started trading for me. To be honest, I was nervous it would lose all of my money. And sure enough, my first trade was a $25 loss!
I felt my throat close up. I thought I had been scammed. I was even ready to call my personal investor and ask for my money back. But then I remembered what my he told me earlier on our call: The algorithm is right about 80-89% of the time. You’re not going to win EVERY trade, but you’ll win enough and be profitable overall.
So I let the software keep trading for me and watched it closely. The next trade was profitable! Only $19 but it was still something. Then the next trade was $51 profit. Then $22 profit, making a total profit of $67. And this was all under 5 minutes!
Soon I started scooping up cash like ice-cream and I couldn’t believe my eyes. Every time I refreshed the screen, my profits grew higher and higher. I felt like I was on drugs because this was such an exciting rush.
Everytime I refreshed my trading dashboard, my profits grew higher and higher. It was such an exciting rush!
Now I know why Justin Trudeau is in a good mood all the time. And why the big banks don’t want people anywhere near this wealth loophole. By the end of the day, I had made over $754 in profit AUD, not bad from a starting investment of $350 AUD! I was so excited I barely got any sleep.
The next day was Tuesday and I had to go back to work. To be honest (and don’t tell my boss this), it was hard to focus on my job knowing the Bitcoin Era software was making me money.
I snuck out to the bathroom a few times to check my profits, and they kept stacking up (with a small loss here and there). At the end of the day, before I put my kids to sleep, my account balance showed $1,349.13. That’s more than I earn in a WEEK at my regular job!
By the end of the week, I made a total of $5,349.12 AUD. I withdrew exactly $4,500 and re-invested the rest. Within 2 days I received my first cheque in the mail- for exactly $4,500. I couldn’t believe this was real life!”
Zach’s receivied a cheque for $4,500 for his first two weeks of using Bitcoin Era Pro
“Now, I am consistently making an additional $700 to $1,500 per day thanks to Bitcoin Era. Now, the money just gets deposited into my bank account every few days. Just a few clicks and I received my funds within 24-48 hours. Everytime the transfer hits my checking account, I have to pinch myself to make sure I wasn’t dreaming.
Luckily, I LOVE my job here because I get to bring people important news stories (like this one) otherwise I would have quit by now. I did, however, plan a vacation for my family to Bali Indonesia to celebrate being out of debt and finally having my family’s finances back on track!
This wouldn’t be possible without Mr. Trudeau ’s generosity and sharing his secret live on television. And I’m happy I took the risk to try Bitcoin Era myself. My wife is happier than ever and my kids’ toy cupboard is well stocked.
My co-workers are kicking themselves they didn’t sign up two weeks ago like I did. But soon, our entire office signed up (including my boss) and they are calling me a “hero” for trying this.”
HOW TO GET STARTED WITH BITCOIN ERA (LIMITED SPOTS AVAILABLE)
To get started, you only need your computer, smartphone, or tablet with internet access. You don’t need any specific skills other than knowing how to use a computer and browsing the internet. You don’t need any technology or cryptocurrency experience because the software and your personal investor guarantees you make a profit.
Another perk of this program is you get to start when you want. You can make your own schedule- whether that’s 5 hours a week or 50 hours a week. Just start the auto-trading software when you wish, and you can pause whenever you want (I don’t know why you ever would though).
To save our reader’s time and double check the ‘s functionality, Zachary kindly created a guide to getting started on the system.
HERE’S MY STEP-BY-STEP WALKTHROUGH:
The first thing you see is a video showing off the power of Bitcoin Era . The advertising is big and bold and in your face, but it is an American product and that’s how they do things. Anyway, you simply submit your name and email address next to the video to get started right away.
(Tip: Even if you don’t decide to invest any money, I recommend signing up now because it’s free and registrations for Canada residents could end at any moment)
Next up, you’re asked to fund your account. As I was navigating the deposit page, my mobile rang. It was an international number so I was hesitant to answer but then I realised it was obviously from.
Sure enough, it was my own personal account manager. His service was great. He took me through the entire funding process. They accept all major credit cards like Visa, MasterCard and American Express. I went ahead and deposited the minimum amount which is $250 USD or $350 AUD.
Once funded, I navigated to the “Auto-Trader” section of software, set the trade amount to the recommended $50 and enabled it. The software started making trades at a rapid rate and I was concerned at first but let it do its thing.
“Everyone wants to be rich but no one knows how to do it. Well, is the opportunity of a lifetime to build a fortune that will allow you to live the life you truly desire. It will NOT be around forever, so do not miss out.” – Justin Trudeau
We just receivied news that as of today almost all positions are filled up for Canada residents. Bitcoin Era can only accept a limited number of total users to keep the profit per user is high. As of right now, there are still (37) spots left, so hurry up and sign up now to secure your spot.
The Truth About Blockchain
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January–February 2020 Issue
Contracts, transactions, and records of them provide critical structure in our economic system, but they haven’t kept up with the world’s digital transformation. They’re like rush-hour gridlock trapping a Formula 1 race car.
Blockchain promises to solve this problem. The technology behind bitcoin, blockchain is an open, distributed ledger that records transactions safely, permanently, and very efficiently. For instance, while the transfer of a share of stock can now take up to a week, with blockchain it could happen in seconds. Blockchain could slash the cost of transactions and eliminate intermediaries like lawyers and bankers, and that could transform the economy. But, like the adoption of more internet technologies, blockchain’s adoption will require broad coordination and will take years. In this article the authors describe the path that blockchain is likely to follow and explain how firms should think about investments in it.
We’ve all heard that blockchain will revolutionize business, but it’s going to take a lot longer than many people claim.
Like TCP/IP (on which the internet was built), blockchain is a foundational technology that will require broad coordination. The level of complexity—technological, regulatory, and social—will be unprecedented.
The adoption of TCP/IP suggests blockchain will follow a fairly predictable path. While the journey will take years, it’s not too early for businesses to start planning.
Contracts, transactions, and the records of them are among the defining structures in our economic, legal, and political systems. They protect assets and set organizational boundaries. They establish and verify identities and chronicle events. They govern interactions among nations, organizations, communities, and individuals. They guide managerial and social action. And yet these critical tools and the bureaucracies formed to manage them have not kept up with the economy’s digital transformation. They’re like a rush-hour gridlock trapping a Formula 1 race car. In a digital world, the way we regulate and maintain administrative control has to change.
Blockchain promises to solve this problem. The technology at the heart of bitcoin and other virtual currencies, blockchain is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. The ledger itself can also be programmed to trigger transactions automatically. (See the sidebar “How Blockchain Works.”)
How Blockchain Works
Here are five basic principles underlying the technology.
1. Distributed Database
Each party on a blockchain has access to the entire database and its complete history. No single party controls the data or the information. Every party can verify the records of its transaction partners directly, without an intermediary.
2. Peer-to-Peer Transmission
Communication occurs directly between peers instead of through a central node. Each node stores and forwards information to all other nodes.
3. Transparency with Pseudonymity
Every transaction and its associated value are visible to anyone with access to the system. Each node, or user, on a blockchain has a unique 30-plus-character alphanumeric address that identifies it. Users can choose to remain anonymous or provide proof of their identity to others. Transactions occur between blockchain addresses.
4. Irreversibility of Records
Once a transaction is entered in the database and the accounts are updated, the records cannot be altered, because they’re linked to every transaction record that came before them (hence the term “chain”). Various computational algorithms and approaches are deployed to ensure that the recording on the database is permanent, chronologically ordered, and available to all others on the network.
5. Computational Logic
The digital nature of the ledger means that blockchain transactions can be tied to computational logic and in essence programmed. So users can set up algorithms and rules that automatically trigger transactions between nodes.
With blockchain, we can imagine a world in which contracts are embedded in digital code and stored in transparent, shared databases, where they are protected from deletion, tampering, and revision. In this world every agreement, every process, every task, and every payment would have a digital record and signature that could be identified, validated, stored, and shared. Intermediaries like lawyers, brokers, and bankers might no longer be necessary. Individuals, organizations, machines, and algorithms would freely transact and interact with one another with little friction. This is the immense potential of blockchain.
Indeed, virtually everyone has heard the claim that blockchain will revolutionize business and redefine companies and economies. Although we share the enthusiasm for its potential, we worry about the hype. It’s not just security issues (such as the 2020 collapse of one bitcoin exchange and the more recent hacks of others) that concern us. Our experience studying technological innovation tells us that if there’s to be a blockchain revolution, many barriers—technological, governance, organizational, and even societal—will have to fall. It would be a mistake to rush headlong into blockchain innovation without understanding how it is likely to take hold.
True blockchain-led transformation of business and government, we believe, is still many years away. That’s because blockchain is not a “disruptive” technology, which can attack a traditional business model with a lower-cost solution and overtake incumbent firms quickly. Blockchain is a foundational technology: It has the potential to create new foundations for our economic and social systems. But while the impact will be enormous, it will take decades for blockchain to seep into our economic and social infrastructure. The process of adoption will be gradual and steady, not sudden, as waves of technological and institutional change gain momentum. That insight and its strategic implications are what we’ll explore in this article.
Patterns of Technology Adoption
Before jumping into blockchain strategy and investment, let’s reflect on what we know about technology adoption and, in particular, the transformation process typical of other foundational technologies. One of the most relevant examples is distributed computer networking technology, seen in the adoption of TCP/IP (transmission control protocol/internet protocol), which laid the groundwork for the development of the internet.
Introduced in 1972, TCP/IP first gained traction in a single-use case: as the basis for e-mail among the researchers on ARPAnet, the U.S. Department of Defense precursor to the commercial internet. Before TCP/IP, telecommunications architecture was based on “circuit switching,” in which connections between two parties or machines had to be preestablished and sustained throughout an exchange. To ensure that any two nodes could communicate, telecom service providers and equipment manufacturers had invested billions in building dedicated lines.
TCP/IP turned that model on its head. The new protocol transmitted information by digitizing it and breaking it up into very small packets, each including address information. Once released into the network, the packets could take any route to the recipient. Smart sending and receiving nodes at the network’s edges could disassemble and reassemble the packets and interpret the encoded data. There was no need for dedicated private lines or massive infrastructure. TCP/IP created an open, shared public network without any central authority or party responsible for its maintenance and improvement.
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Blockchain: The Insights You Need from Harvard Business Review
Traditional telecommunications and computing sectors looked on TCP/IP with skepticism. Few imagined that robust data, messaging, voice, and video connections could be established on the new architecture or that the associated system could be secure and scale up. But during the late 1980s and 1990s, a growing number of firms, such as Sun, NeXT, Hewlett-Packard, and Silicon Graphics, used TCP/IP, in part to create localized private networks within organizations. To do so, they developed building blocks and tools that broadened its use beyond e-mail, gradually replacing more-traditional local network technologies and standards. As organizations adopted these building blocks and tools, they saw dramatic gains in productivity.
TCP/IP burst into broad public use with the advent of the World Wide Web in the mid-1990s. New technology companies quickly emerged to provide the “plumbing”—the hardware, software, and services needed to connect to the now-public network and exchange information. Netscape commercialized browsers, web servers, and other tools and components that aided the development and adoption of internet services and applications. Sun drove the development of Java, the application-programming language. As information on the web grew exponentially, Infoseek, Excite, AltaVista, and Yahoo were born to guide users around it.
Once this basic infrastructure gained critical mass, a new generation of companies took advantage of low-cost connectivity by creating internet services that were compelling substitutes for existing businesses. CNET moved news online. Amazon offered more books for sale than any bookshop. Priceline and Expedia made it easier to buy airline tickets and brought unprecedented transparency to the process. The ability of these newcomers to get extensive reach at relatively low cost put significant pressure on traditional businesses like newspapers and brick-and-mortar retailers.
Relying on broad internet connectivity, the next wave of companies created novel, transformative applications that fundamentally changed the way businesses created and captured value. These companies were built on a new peer-to-peer architecture and generated value by coordinating distributed networks of users. Think of how eBay changed online retail through auctions, Napster changed the music industry, Skype changed telecommunications, and Google, which exploited user-generated links to provide more relevant results, changed web search.
Companies are already using blockchain to track items through complex supply chains.
Ultimately, it took more than 30 years for TCP/IP to move through all the phases—single use, localized use, substitution, and transformation—and reshape the economy. Today more than half the world’s most valuable public companies have internet-driven, platform-based business models. The very foundations of our economy have changed. Physical scale and unique intellectual property no longer confer unbeatable advantages; increasingly, the economic leaders are enterprises that act as “keystones,” proactively organizing, influencing, and coordinating widespread networks of communities, users, and organizations.
The New Architecture
Blockchain—a peer-to-peer network that sits on top of the internet—was introduced in October 2008 as part of a proposal for bitcoin, a virtual currency system that eschewed a central authority for issuing currency, transferring ownership, and confirming transactions. Bitcoin is the first application of blockchain technology.
The parallels between blockchain and TCP/IP are clear. Just as e-mail enabled bilateral messaging, bitcoin enables bilateral financial transactions. The development and maintenance of blockchain is open, distributed, and shared—just like TCP/IP’s. A team of volunteers around the world maintains the core software. And just like e-mail, bitcoin first caught on with an enthusiastic but relatively small community.
TCP/IP unlocked new economic value by dramatically lowering the cost of connections. Similarly, blockchain could dramatically reduce the cost of transactions. It has the potential to become the system of record for all transactions. If that happens, the economy will once again undergo a radical shift, as new, blockchain-based sources of influence and control emerge.
Consider how business works now. Keeping ongoing records of transactions is a core function of any business. Those records track past actions and performance and guide planning for the future. They provide a view not only of how the organization works internally but also of the organization’s outside relationships. Every organization keeps its own records, and they’re private. Many organizations have no master ledger of all their activities; instead records are distributed across internal units and functions. The problem is, reconciling transactions across individual and private ledgers takes a lot of time and is prone to error.
For example, a typical stock transaction can be executed within microseconds, often without human intervention. However, the settlement—the ownership transfer of the stock—can take as long as a week. That’s because the parties have no access to each other’s ledgers and can’t automatically verify that the assets are in fact owned and can be transferred. Instead a series of intermediaries act as guarantors of assets as the record of the transaction traverses organizations and the ledgers are individually updated.
In a blockchain system, the ledger is replicated in a large number of identical databases, each hosted and maintained by an interested party. When changes are entered in one copy, all the other copies are simultaneously updated. So as transactions occur, records of the value and assets exchanged are permanently entered in all ledgers. There is no need for third-party intermediaries to verify or transfer ownership. If a stock transaction took place on a blockchain-based system, it would be settled within seconds, securely and verifiably. (The infamous hacks that have hit bitcoin exchanges exposed weaknesses not in the blockchain itself but in separate systems linked to parties using the blockchain.)
A Framework for Blockchain Adoption
If bitcoin is like early e-mail, is blockchain decades from reaching its full potential? In our view the answer is a qualified yes. We can’t predict exactly how many years the transformation will take, but we can guess which kinds of applications will gain traction first and how blockchain’s broad acceptance will eventually come about.
How Foundational Technologies Take Hold
The adoption of foundational technologies typically happens in four phases. Each phase is defined by the novelty of the applications and the complexity of the coordination efforts needed to make them workable. Applications low in novelty and complexity gain acceptance first. Applications high in novelty and complexity take decades to evolve but can transform the economy. TCP/IP technology, introduced on ARPAnet in 1972, has already reached the transformation phase, but blockchain applications (in red) are in their early days.
In our analysis, history suggests that two dimensions affect how a foundational technology and its business use cases evolve. The first is novelty—the degree to which an application is new to the world. The more novel it is, the more effort will be required to ensure that users understand what problems it solves. The second dimension is complexity, represented by the level of ecosystem coordination involved—the number and diversity of parties that need to work together to produce value with the technology. For example, a social network with just one member is of little use; a social network is worthwhile only when many of your own connections have signed on to it. Other users of the application must be brought on board to generate value for all participants. The same will be true for many blockchain applications. And, as the scale and impact of those applications increase, their adoption will require significant institutional change.
We’ve developed a framework that maps innovations against these two contextual dimensions, dividing them into quadrants. (See the exhibit “How Foundational Technologies Take Hold.”) Each quadrant represents a stage of technology development. Identifying which one a blockchain innovation falls into will help executives understand the types of challenges it presents, the level of collaboration and consensus it needs, and the legislative and regulatory efforts it will require. The map will also suggest what kind of processes and infrastructure must be established to facilitate the innovation’s adoption. Managers can use it to assess the state of blockchain development in any industry, as well as to evaluate strategic investments in their own blockchain capabilities.
In the first quadrant are low-novelty and low-coordination applications that create better, less costly, highly focused solutions. E-mail, a cheap alternative to phone calls, faxes, and snail mail, was a single-use application for TCP/IP (even though its value rose with the number of users). Bitcoin, too, falls into this quadrant. Even in its early days, bitcoin offered immediate value to the few people who used it simply as an alternative payment method. (You can think of it as a complex e-mail that transfers not just information but also actual value.) At the end of 2020 the value of bitcoin transactions was expected to hit $92 billion. That’s still a rounding error compared with the $411 trillion in total global payments, but bitcoin is growing fast and increasingly important in contexts such as instant payments and foreign currency and asset trading, where the present financial system has limitations.
The second quadrant comprises innovations that are relatively high in novelty but need only a limited number of users to create immediate value, so it’s still relatively easy to promote their adoption. If blockchain follows the path network technologies took in business, we can expect blockchain innovations to build on single-use applications to create local private networks on which multiple organizations are connected through a distributed ledger.
Much of the initial private blockchain-based development is taking place in the financial services sector, often within small networks of firms, so the coordination requirements are relatively modest. Nasdaq is working with Chain.com, one of many blockchain infrastructure providers, to offer technology for processing and validating financial transactions. Bank of America, JPMorgan, the New York Stock Exchange, Fidelity Investments, and Standard Chartered are testing blockchain technology as a replacement for paper-based and manual transaction processing in such areas as trade finance, foreign exchange, cross-border settlement, and securities settlement. The Bank of Canada is testing a digital currency called CAD-coin for interbank transfers. We anticipate a proliferation of private blockchains that serve specific purposes for various industries.
The third quadrant contains applications that are relatively low in novelty because they build on existing single-use and localized applications, but are high in coordination needs because they involve broader and increasingly public uses. These innovations aim to replace entire ways of doing business. They face high barriers to adoption, however; not only do they require more coordination but the processes they hope to replace may be full-blown and deeply embedded within organizations and institutions. Examples of substitutes include cryptocurrencies—new, fully formed currency systems that have grown out of the simple bitcoin payment technology. The critical difference is that a cryptocurrency requires every party that does monetary transactions to adopt it, challenging governments and institutions that have long handled and overseen such transactions. Consumers also have to change their behavior and understand how to implement the new functional capability of the cryptocurrency.
A recent experiment at MIT highlights the challenges ahead for digital currency systems. In 2020 the MIT Bitcoin Club provided each of MIT’s 4,494 undergraduates with $100 in bitcoin. Interestingly, 30% of the students did not even sign up for the free money, and 20% of the sign-ups converted the bitcoin to cash within a few weeks. Even the technically savvy had a tough time understanding how or where to use bitcoin.
One of the most ambitious substitute blockchain applications is Stellar, a nonprofit that aims to bring affordable financial services, including banking, micropayments, and remittances, to people who’ve never had access to them. Stellar offers its own virtual currency, lumens, and also allows users to retain on its system a range of assets, including other currencies, telephone minutes, and data credits. Stellar initially focused on Africa, particularly Nigeria, the largest economy there. It has seen significant adoption among its target population and proved its cost-effectiveness. But its future is by no means certain, because the ecosystem coordination challenges are high. Although grassroots adoption has demonstrated the viability of Stellar, to become a banking standard, it will need to influence government policy and persuade central banks and large organizations to use it. That could take years of concerted effort.
To learn more about technology adoption, go to these articles on HBR.org:
“Strategy as Ecology”
Marco Iansiti and Roy Levien
Into the last quadrant fall completely novel applications that, if successful, could change the very nature of economic, social, and political systems. They involve coordinating the activity of many actors and gaining institutional agreement on standards and processes. Their adoption will require major social, legal, and political change.
“Smart contracts” may be the most transformative blockchain application at the moment. These automate payments and the transfer of currency or other assets as negotiated conditions are met. For example, a smart contract might send a payment to a supplier as soon as a shipment is delivered. A firm could signal via blockchain that a particular good has been received—or the product could have GPS functionality, which would automatically log a location update that, in turn, triggered a payment. We’ve already seen a few early experiments with such self-executing contracts in the areas of venture funding, banking, and digital rights management.
The implications are fascinating. Firms are built on contracts, from incorporation to buyer-supplier relationships to employee relations. If contracts are automated, then what will happen to traditional firm structures, processes, and intermediaries like lawyers and accountants? And what about managers? Their roles would all radically change. Before we get too excited here, though, let’s remember that we are decades away from the widespread adoption of smart contracts. They cannot be effective, for instance, without institutional buy-in. A tremendous degree of coordination and clarity on how smart contracts are designed, verified, implemented, and enforced will be required. We believe the institutions responsible for those daunting tasks will take a long time to evolve. And the technology challenges—especially security—are daunting.
Guiding Your Approach to Blockchain Investment
How should executives think about blockchain for their own organizations? Our framework can help companies identify the right opportunities.
For most, the easiest place to start is single-use applications, which minimize risk because they aren’t new and involve little coordination with third parties. One strategy is to add bitcoin as a payment mechanism. The infrastructure and market for bitcoin are already well developed, and adopting the virtual currency will force a variety of functions, including IT, finance, accounting, sales, and marketing, to build blockchain capabilities. Another low-risk approach is to use blockchain internally as a database for applications like managing physical and digital assets, recording internal transactions, and verifying identities. This may be an especially useful solution for companies struggling to reconcile multiple internal databases. Testing out single-use applications will help organizations develop the skills they need for more-advanced applications. And thanks to the emergence of cloud-based blockchain services from both start-ups and large platforms like Amazon and Microsoft, experimentation is getting easier all the time.
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Localized applications are a natural next step for companies. We’re seeing a lot of investment in private blockchain networks right now, and the projects involved seem poised for real short-term impact. Financial services companies, for example, are finding that the private blockchain networks they’ve set up with a limited number of trusted counterparties can significantly reduce transaction costs.
Organizations can also tackle specific problems in transactions across boundaries with localized applications. Companies are already using blockchain to track items through complex supply chains, for instance. This is happening in the diamond industry, where gems are being traced from mines to consumers. The technology for such experiments is now available off-the-shelf.
Developing substitute applications requires careful planning, since existing solutions may be difficult to dislodge. One way to go may be to focus on replacements that won’t require end users to change their behavior much but present alternatives to expensive or unattractive solutions. To get traction, substitutes must deliver functionality as good as a traditional solution’s and must be easy for the ecosystem to absorb and adopt. First Data’s foray into blockchain-based gift cards is a good example of a well-considered substitute. Retailers that offer them to consumers can dramatically lower costs per transaction and enhance security by using blockchain to track the flows of currency within accounts—without relying on external payment processors. These new gift cards even allow transfers of balances and transaction capability between merchants via the common ledger.
Blockchain could slash the cost of transactions and reshape the economy.
Transformative applications are still far away. But it makes sense to evaluate their possibilities now and invest in developing technology that can enable them. They will be most powerful when tied to a new business model in which the logic of value creation and capture departs from existing approaches. Such business models are hard to adopt but can unlock future growth for companies.
Consider how law firms will have to change to make smart contracts viable. They’ll need to develop new expertise in software and blockchain programming. They’ll probably also have to rethink their hourly payment model and entertain the idea of charging transaction or hosting fees for contracts, to name just two possible approaches. Whatever tack they take, executives must be sure they understand and have tested the business model implications before making any switch.
Transformative scenarios will take off last, but they will also deliver enormous value. Two areas where they could have a profound impact: large-scale public identity systems for such functions as passport control, and algorithm-driven decision making in the prevention of money laundering and in complex financial transactions that involve many parties. We expect these applications won’t reach broad adoption and critical mass for at least another decade and probably more.
Transformative applications will also give rise to new platform-level players that will coordinate and govern the new ecosystems. These will be the Googles and Facebooks of the next generation. It will require patience to realize such opportunities. Though it may be premature to start making significant investments in them now, developing the required foundations for them—tools and standards—is still worthwhile.
In addition to providing a good template for blockchain’s adoption, TCP/IP has most likely smoothed the way for it. TCP/IP has become ubiquitous, and blockchain applications are being built on top of the digital data, communication, and computation infrastructure, which lowers the cost of experimentation and will allow new use cases to emerge rapidly.
With our framework, executives can figure out where to start building their organizational capabilities for blockchain today. They need to ensure that their staffs learn about blockchain, to develop company-specific applications across the quadrants we’ve identified, and to invest in blockchain infrastructure.
But given the time horizons, barriers to adoption, and sheer complexity involved in getting to TCP/IP levels of acceptance, executives should think carefully about the risks involved in experimenting with blockchain. Clearly, starting small is a good way to develop the know-how to think bigger. But the level of investment should depend on the context of the company and the industry. Financial services companies are already well down the road to blockchain adoption. Manufacturing is not.
No matter what the context, there’s a strong possibility that blockchain will affect your business. The very big question is when.
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