In South Korea, the blockchain industry is not as lucrative as such. Reports indicate that in the country’s economy, less than a quarter of the technology companies that are engaged in the development of blockchain have raised any revenue regarding their blockchain endeavours. This figure is by far the lowest in the success rates for new investments in other sectors of technology and Solutions.
The statistics were reported in the 2018 Software Industry Survey. The survey was undertaken and conducted by the Software Policy and Research Institute, which is related to the country’s National IT industry promotion agency. The report was released on August 26, even though it is dated December 2018.
As per the report, only 22.2% of those in blockchain had reported sales, indicating that the high interest in the market had not yet led to sales results. The revelations of the report suggest that, at least by the end of the year 2018, the much-hyped thriving blockchain was however to materialize and actualize. Notwithstanding, the high interest on the part of the government and other stakeholders in the blockchain technology, very little happened in terms of revenue generation from the blockchain industry.
It estimates that only 44 of the 198 blockchain investments had attained any sales from their freshly initiated and launched offerings. The report indicates that the results for blockchain investments were the lowest in the survey by far, in comparison to the 60.2% of companies in Cloud computing that had made sales from their new software and services in 2018.
Contrary to popular belief, the report suggests that the blockchain novelty was not yet a significant part of new technology development overly. As such, it indicates that most of the action and revenue generation lied in other areas of the economy. Of the companies that were in the development of new software businesses, only 8.4% were involved in blockchain.
The above figure compares starkly to the 40 3.5% that were engaged in Cloud computing, the 27.9% that were involved in big data and lastly the 25% that were engaged in the internet of things, IoT. The total drums up to 100% as the survey provided multiple answers to enable companies that were engaged in more than one line of business to be included.
Big data recorded success rates of 56.9% while those that were engaged in developments of the internet of things, IoT, recorded a success rate of 67.1%. A success rate of 50% was reported for companies related to AI, while companies engaging themselves in virtual reality, reported new software-generated sales and revenue of about 68.1% for each of them.
The conclusion as per the report seemed to indicate that even though the blockchain industry has been very hyped in the recent decade, little generation of revenue from sales is taking place within Korea. This has been done in comparison to other areas of technology within the country.