Current Enterprise Blockchain Implementations Will Require Replacement By 2021 – Gartner

Blockchain, News | June 4, 2019 By:

Research and advisory firm Gartner said that 90% of existing blockchain implementations will need to be reworked within the next 18 months.

In a press release, Gartner called the blockchain platform market “fragmented,” stating that it is making technology choices confusing for IT decision makers. The market’s fragmented nature also means that the technology implemented by some companies will require replacement by 2021 to remain competitive, secure and avoid obsolescence.

Adrian Lee, senior research director at Gartner, said that blockchain platform vendors typically use messaging that does not link to a target buyer’s use cases and business benefits – leaving companies confused as to how blockchain platforms work or what benefits blockchain adds compared to their existing processes.

“Many CIOs overestimate the capabilities and short-term benefits of blockchain as a technology to help them achieve their business goals, thus creating unrealistic expectations when assessing offerings from blockchain platform vendors and service providers,” Lee said.

According to Lee, due to the lack of an industry consensus on product concept, feature set, core application requirements and target market, they do not expect there to be a single dominant blockchain platform within the next five years. Instead, they expect a multi-platform world to emerge.

The research and advisory firm also predicted that by 2025, the business value added by blockchain will grow to slightly more than $176 billion, then surge to exceed $3.1 trillion by 2030.

“Product managers should prepare for rapid evolution, early obsolescence, a shifting competitive landscape, future consolidation of offerings and the potential failure of early stage technologies/functionality in the blockchain platform market,” Lee said.