GARTNER HYPE CYCLE 2020 TRIAL
Until then, the industry will see several changes with advancements in technology and a lot of trial and error. Moving through different phases of development, Gartner envisages the technology will unlock value in 2023. The year 2023 is pegged as an important year for blockchain. Gartner described blockchain as having “tremendous promise” for marketers.
The research firm in its hype cycle for digital marketing and advertising report saw blockchain as an emerging trend. But banking is still the most mature sector in terms of adoption. Citing this, Gartner sees blockchain deployment in financial services at least three years away. It previously discussed the problem of blockchain interoperability and a lack of standards. A few months ago, in its blockchain hype cycle report, Gartner said about 60% of CIOs across sectors expect some adoption of blockchain in the next three years. Gartner has published several reports discussing blockchain adoption and future prospects. The report advises organizations to carefully consider their participation in a consortium by evaluating its impact on their business.
Gartner categorizes blockchain consortia into four types - technology-centric, geographically centric, industry-centric and process-centric. Other use cases have broader applications such as identity and know your client, IoT and smart cities, and loyalty and rewards.Īt present, blockchain networks are primarily dependent on forming a consortium to exchange information. Several applications orient around finance and banking including payments/settlement, trade finance, trading and insurance claims. Many relate to data such as asset tracking, provenance, and both internal and shared record-keeping. Gartner listed eleven use cases for blockchain. The integration of private with public blockchains will be possible with technology improvements while still supporting the membership, governance and operating model requirements of permissioned blockchains. A critical enterprise requirement is private transactions which are increasingly being enabled on public blockchains. However, Gartner sees this as an evolutionary phase and expects permissioned blockchains to integrate with public blockchains in the future. One of the issues with enterprise blockchain currently is that most networks are permissioned and run by a central authority. Other benefits include a reduction in transaction costs and settlement times and improvements in cash flow. The research firm says blockchain has the potential to reshape industries by enabling trust, providing transparency and enabling value exchange across businesses. The report, ‘ Top 10 Strategic Technology Trends for 2020’, suggests enterprises at the very least start evaluating distributed ledger technologies (DLT), if not adopting it, citing the technology’s potential for disruption and revenue generation. However, it sees a current role for enterprise blockchain in digital transformation with “evolutionary and incremental improvements” in trust and transparency.
It said public blockchains are presently too immature for enterprise deployment due to poor scalability and interoperability but expects the technology to overcome these issues by 2023. Research and advisory firm Gartner listed blockchain as one of the top ten strategic technologies for 2020.