Interest in blockchain continues to be high, but there is still a significant gap between the hype and market reality. Only 11% of CIOs indicated they have deployed or are in short-term planning with blockchain, according to the Gartner. This may be because the majority of projects fail to get beyond the initial experimentation phase.
“Blockchain is currently sliding down toward the Trough of Disillusionment in Gartner’s latest ‘Hype Cycle for Emerging Technologies,’” said Adrian Leow, senior research director at Gartner. “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. We do not expect that there will be a single dominant platform within the next five years.”
To successfully conduct a blockchain project, it is necessary to understand the root causes for failure. Gartner has identified the seven most common mistakes in blockchain projects and how to avoid them.
No. 1: Misunderstanding or misusing Blockchain technology
Gartner has found that the majority of blockchain projects are solely used for recording data on blockchain platforms via decentralized ledger technology (DLT), ignoring key features such as decentralized consensus, tokenization or smart contracts.
“DLT is a component of blockchain, not the whole blockchain. The fact that organizations are so infrequently using the complete set of blockchain features prompts the question of whether they even need blockchain,” Mr. Leow said. “It is fine to start with DLT, but the priority for CIOs should be to clarify the use cases for blockchain as a whole and move into projects that also utilize other blockchain components.”
No. 2: Assuming the technology is ready for production use
The blockchain platform market is huge and largely composed of fragmented offerings that try to differentiate themselves in various ways. Some focus on…