Inside money, markets, and big tech

Enterprise blockchains are screwed, 90% will need replacing by 2021

Enterprise blockchains are facing a tough few years

crypto fatigue real

Think corporate-level blockchain adoption is going smoothly? Think again. According to new research, corporations will need to replace their enterprise blockchains within the next two years.

Global research company Gartner says that 90 percent of current enterprise blockchains will need to be replaced in the next 18 months if they are to remain “competitive, secure, and avoid obsolescence,” it said in an article spotted by Computer Weekly.

“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 platform vendors and service providers,” said Adrian Lee, senior research director at Gartner.

“Due to the lack of an industry consensus on product concept, feature set, core application requirements and target market, we do not expect there to be a single dominant platform within the next five years,” Lee continued.

While some corporations – like Walmart, IBM, and EY – have been quick to dive into corporate blockchains, the industry is still divided as others have been more skeptical of its true value.

Indeed, another Gartner report from early May suggested that 90 percent of blockchain-based supply chains will experience “blockchain fatigue” by 2023, mostly due to a lack of strong use cases.

Of course, new technologies rarely reach market in perfect form. But given that Gartner expects blockchain to add $176 billion worth of added value to businesses by 2025, devs better get to work. Otherwise corporations will likely move on to the next “big thing.”

Published June 3, 2019 — 14:54 UTC