Why the Blockchain Needs More Failures to Succeed

Tired of scams? In this opinion piece, Mougayar argues that more failures are what's needed to take blockchain technology to the next level.

In the world of startups, learning from failures is an inescapable reality, and part of the prevalent conventional wisdom.

In the burgeoning blockchain segment, we haven't seen that many failures yet.

Failures are important because their sum results in a new body of knowledge that is rich with useful insights and best practices.

An aftermath of real failures can make the whole blockchain ecosystem more resilient, because it will result in revealing the boundaries and realities of what's possible, useful, absurd, impossible, repeatable and scalable; out of everything that appears plausible and innovative at the beginning.

We need more failures - of the spectacular kind.

Many blockchain project categories are in the first renditions of such attempts to apply blockchain technology.

Let's not forget that the web's early years were filled with spectacular failures.

It is my opinion that we will need to see more, bigger and more damaging failures in order to complete the circle of madness and early recklessness that accompanies early market formations, including the need to see more startups shutting down.

I would really like to see more of these failures and excesses, in part to rush the crash, but also to amass the lessons we need to learn, in order to continue growing further ahead. If we do that, we would complete the circle of madness and early recklessness that accompanies early markets formation, and once again prove the validity of Carlota Perez perennial model.