Published in Cloud

90 percent of blockchain projects doomed

by on09 May 2019

Gartner Group warns

A survey by the analyst outfit Gartner Group shows that 90 percent of blockchain-based supply chain projects are faltering.

Big G said that is because the projects cannot find a use for the technology and this inability to identify strong use cases, “blockchain fatigue”, will begin setting in over the next five years.

In its “Predicts 2019: Future of Supply Chain Operations” report Big G chatted to more than 300 executives involved in blockchain projects worldwide.

Alex Pradhan, a senior principal research analyst at Gartner said that most of the problem was due to blockchain suppliers’ inability to live up to the technology’s hype.

Despite the great amount of time and effort invested in pilot projects aiming to use distributed ledgers to verify authenticity, improve traceability, and build more trust into supply chain transactions, only 19 percent of respondents ranked blockchain as a very important technology for their business, the company said. Just  nine percent have invested in it.

Most of these projects “have remained pilot projects due to a combination of technology immaturity, lack of standards, overly ambitious scope, and a misunderstanding of how blockchain could, or should, actually help the supply chain”, Pradhan said.

Blockchain vendors are still struggling to develop off-the-shelf product offerings, win market share, establish industry standards, and identify specific high-value use cases. And, the blockchain products on offer remain complex, Pradhan added.

“Without a vibrant market for commercial blockchain applications, the majority of companies do not know how to evaluate, assess and benchmark solutions, especially as the market landscape rapidly evolves.”

Last modified on 09 May 2019
Rate this item
(0 votes)

Read more about: