Companies are still cautiously dipping their toes into the blockchain trough, hoping to discover where the distributed ledger technology can create efficiencies in their business processes. But for those who are ready to take the plunge, there are common missteps to avoid.
Based on its research of blockchain implementations, Gartner this week published a guide to the seven most common mistakes companies should avoid.
Gartner gauges the maturation of new technology through a “Hype Cycle,” a graphic-based lifecycle that follows five phases: from the Technology Trigger, when proof-of-concept stories and media interest emerges, to the Plateau of Productivity, when mainstream adoption occurs – if the technology is more than niche.
Adrian Leow, senior research director at Gartner, said blockchain is currently sliding down toward the “Trough of Disillusionment.” That’s where interest wanes as pilots and proofs-of-concept fail to deliver forcing tech providers to either work out the kinks or allow a technology to fail and die out.
“The blockchain platforms and technologies market is still nascent and there is no industry consensus on key components such as product concept, feature set and core application requirements,” Leow said in a statement. “We do not expect that there will be a single dominant platform within the next five years.”
In fact, last week, Gartner in a separate study claimed that by 2021, 90% of current enterprise blockchain platform implementations will require replacement to remain competitive, secure and relevant.
“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,” Adrian Lee, a senior research director at Gartner, said in that study.
By 2025, the business value added by blockchain is expected to grow to slightly more than $176 billion…