90% of blockchain platforms replaced by 2021

According to a new Gartner report, 90% of current enterprise blockchain platform implementations will require replacement by 2021.

This will be needed to ensure that they remain competitive, secure and avoid obsolescence.

“Blockchain platforms are emerging platforms and, at this point, nearly indistinguishable in some cases from core blockchain technology,” said Adrian Lee, senior research director at Gartner.

“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.”

Today, the blockchain platform market is composed of fragmented offerings that often overlap or are being used in a complementary fashion, making technology choices confusing for IT decision-makers.

“Compounding this challenge is the fact that blockchain platform vendors typically use messaging that does not link to a target buyer’s use cases and business benefits,” Lee said.

“‘Transactions’, for example, was the term mentioned the most in relation to blockchain, followed by ‘secure’ and ‘security’. While these may be functions of blockchain-enabling technology, buyers are still confused as to how these functions are achieved or what benefits blockchain adds compared to their existing processes.”

Nonetheless, as enterprises’ interest for blockchain technology increases, the number of blockchain platform vendors continues to increase with more new entrants.

“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 blockchain platform within the next five years. Instead, we expect a multiplatform world to emerge,” Lee said.

By 2025, the business value added by blockchain will grow to slightly more than $176 billion, then surge to exceed $3.1 trillion by 2030, according to a recent forecast by Gartner.

“Product managers should prepare for rapid evolution, early obsolescence, a shifting competitive landscape, future consolidation of offerings and the potential failure of early-stage technologies/functionality in the blockchain platform market,” Lee said.

For more information, read the report ‘How to Position Blockchain Platforms to Increase Adoption’ by Adrian Lee and Adrian Leow. Additional blockchain research can be found in the Gartner special report ‘Blockchain-based Transformation’. This collection of research highlights the scope of blockchain’s transformation, how it impacts various industries, and the current state and evolution of these technologies.

Image credit: ©stock.adobe.com/au/sdecoret

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