Blockchain: The Costly Unicorn
Daniel Springer, the mastermind at DocuSign, has decided to keep his wallet shut when it comes to new blockchain technology. In a recent Quartz report, he shared that the current infrastructure is simply too cheap to overlook! The company’s previous attempt at dabbling in blockchain, specifically with Ethereum in 2018, turned out to be a bit like buying a ticket to a world-class show only to find out you’re seated with the pigeons.
The Price of Innovation
Let’s break this down. During the Ethereum experiment, the cost of agreements shot up to nearly $1 each, while the standard DocuSign process keeps it cozy at around $0.07 per agreement. You do the math: that’s a staggering 13 times the price! Springer doesn’t mince words when he says,
“To spend $1 just on the storage is a little bit crazy.”
Ouch!
Engineering Perspectives
Tom Casey, the senior VP of engineering, jumped in to further illuminate the situation. He mentioned that enormous expense stems not just from the technology itself but from maintaining and managing blockchain infrastructure. In layman’s terms: running a blockchain isn’t cheap, and until it gets more popular, that bill isn’t going anywhere.
The Silver Lining?
But what now? Both execs have their eyes on the future of blockchain technology. Springer finds it quite “intriguing,” but he firmly believes it’s not ready to take center stage due to its current economic drawbacks. Casey is similarly keeping a close watch on blockchain solutions, especially in the realm of identity protection, which he sees as a promising application.
DocuSign’s Blockchain Chronicles
While DocuSign’s history with blockchain includes a past partnership with Visa in 2015 aimed at developing proof-of-work concepts, its approach currently seems cautious. As a member of the Enterprise Ethereum Alliance and the Accord Project, DocuSign continues to advocate for smart legal contracts, hinting they’re not completely shutting the door on blockchain just yet. They’re just being fashionably late.
The Bottom Line
What’s the bottom line? With shares skyrocketing more than 209% in 2020—starting from a humble $75.90 and hitting $234.82—DocuSign is clearly doing something right. For now, it seems they’re focused on keeping costs low and profits high, with a casual glance at blockchain from the corner of their eye.
+ There are no comments
Add yours