In fitting with the well-known Gartner Hype Cycle, emerging technology is often overhyped in its early phases, and underhyped in the long run at the tech actually progresses. The report expresses this notion, stating, “Many CIOs overestimate the capabilities and short-term benefits of blockchain as a technology to help them achieve their business goals.”

The blockchain uses case that will accrue the most business value in the short term is digital cash offered by various companies. This has largely been observed from the likes of JP Morgan, UBS, and Facebook which have all announced their own digital coins. Gartner predicts this trend will increase in popularity and attribute nearly a quarter of the total value generated by blockchain technology.

As time progresses, Gartner expects intracompany blockchains to produce significate value until cross-company blockchain reach a point in which they can generate the most benefit to businesses. This follows the common narrative that permissioned blockchains will meet the needs of businesses until public blockchains are able to scale significantly.

However, the future implications of blockchain will be powerful and occur throughout multiple industries. In achieving that, the Gartner report states that by 2021, 90% of current enterprise blockchain platform implementations will require replacement within 18 months to remain competitive, secure and avoid obsolescence.

Some companies have opted to build their own proprietary blockchain platforms rather than building upon standardized platforms such as Ethereum. With the rapid rate of blockchain development, it’s no major surprise that Gartner predicts a high turnover of blockchain usage. There will be companies that create platforms for niche industries and use cases until a larger platform can gain substantial market share.

What’s the Issue with Blockchain Adoption?