The much-hyped blockchain technology is going to be pulled back in the next one year, as the cost and complexity of implementing blockchain solutions becomes apparent, reveals GlobalData’s Thematic Research report. The report said that most of the blockchain projects will either be put aside in favour of more traditional approaches or they will be worked out in a manner which minimizes their dependence on blockchain technology.
“While the market is filled with absurd claims about the benefits of blockchain technology, there are some key domains where the ability to execute distributed transactions without relying on a single central authority will bring significant value,” shared the report.
‘Blockchain – Thematic Research’, reveals that “while the market is awash with absurd claims about the benefits of blockchain technology, there are some key domains where the ability to execute distributed transactions without relying on a single central authority will bring significant value. Blockchain is an electronic ledger of transactions that are continuously maintained in blocks of records. The ledgers are jointly held and run by all participants. While blockchain technology will have lost much of its gloss by 2025, it will have found its way into the heart of many key business processes; especially those involving multiple, disparate, participants.
“We are entering a new phase in the evolution of blockchain technology; over the next 24 months the more outlandish claims made by proponents of blockchain will be debunked and technology providers and users alike will begin looking with clearer eyes at the narrow but significant set of use-cases where blockchain and distributed ledger technology can add real value,’’ says Gary Barnett, Chief Analyst – Technology Thematic Research – GlobalData.
“However, Internal blockchain projects are the most likely to fail as there is no use case for blockchain within a single organisation. The value of blockchain lies in its ability to provide a transaction platform for multiple, disparate, parties,” he added.
Big consulting firms that can combine technology capability with consulting will be the medium-term winners. The key players in the next phase of blockchain will be the technology-savvy systems integrators and the big software providers who participate in established eco-systems. Firms like IBM, Accenture, SAP, and Cognizant all combine technology expertise with the ability to bring multiple parties together into consortia.