A new report by research firm Gartner has predicted that 90% of current enterprise blockchain platform implementations will require replacement by 2021.
Gartner says enterprises will have to replace their blockchain platforms in the next 18 months in order to remain competitive, secure and relevant. This is mainly because the blockchain platform market is filled with fragmented offerings that often overlap, making it difficult for IT leaders to choose the right technology.
Adrian Lee, senior research director at Gartner said:
“Blockchain platforms are emerging platforms and, at this point, nearly indistinguishable in some cases from core blockchain technology.”
He added that in selecting blockchain technology to realize their business goals, many CIOs overestimate the capabilities and short-term benefits of the distributed ledger. This results in unrealistic expectations when it comes to evaluating offerings from blockchain platform providers.
According to Gartner, there’s still confusion among buyers about what benefits blockchain brings to businesses compared to their existing processes. The reason for this is that blockchain platform providers have failed to link a target buyer’s use cases and business benefits.
Enterprise blockchain platform growth
Gartner, however, noted that the number of enterprise blockchain platform providers continue to increase with more new entrants joining the industry. And because the market industry lacks a consensus on product concept, core application requirements, and target market, it means that no single dominant blockchain platform will be able to dominate the market in the next five years.
In fact, Gartner predicts that 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.
“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 concluded.
Last month, Gartner released another report predicting that lack of strong use cases will likely see most blockchain supply chain initiatives suffer “blockchain fatigue” by 2023.