Gartner's latest forecast: 90% of corporate blockchain technology will be replaced in 2021

Gartner predicts that by 2021, 90% of the blockchain technology currently used by companies will need to be replaced.

As one of the most cutting-edge technologies that companies can adopt, one might think that the early adoption of such a technology that supports cryptocurrencies such as bitcoin would mean that a company can stand the test of time.

However, according to the well-known consulting firm Gartner, the existing blockchain system needs to be replaced in the next 18 months, so that some forward-looking companies can maintain cooperation and security while avoiding their systems being outdated.

Blockchain

Adrian Lee, senior research director at Gartner, said:

“The blockchain platform is an emerging platform and in some cases is almost indistinguishable from core blockchain technology. Many CIOs overestimate the blockchain's ability to help them achieve their business goals and short-term benefits, so they are evaluating Unrealistic expectations arise from products from blockchain platform vendors and service providers."

These problems stem from the blockchain market, which consists of fragmented systems and services that often overlap or work in complementary ways, says Gartner, which makes choosing the right blockchain for the business. A challenging task for the IT department.

Lee explained:

“What's more complicated is that the information that blockchain platform vendors typically pass is not consistent with the target buyer's application and business interests. For example, 'transaction' is the most relevant term with blockchain. Followed by 'secure' and 'security'. Although this may be a function of blockchain technology implementation, buyers are still unclear how these functions are implemented compared to existing processes, and What advantages does the blockchain bring?"

As companies become more interested in blockchain technology, more and more technology suppliers will enter the market, and this problem seems to be destined to expand, which means that the platform will be more dispersed, rather than more unified and standardized.

Lee predicts:

“Because of the lack of industry consensus on product concepts, functionality, core application requirements and target markets, we do not expect a single dominant blockchain platform in the next five years. Instead, we want a multi-platform world.”

Despite this, Gartner expects the blockchain's business value to grow from $176 billion in 2025 to $3.1 trillion in 2030.

Lee believes that this is something that enterprise product managers need to keep in mind. With the rapid development of the platform and the beginning of the early phase-out, as well as the future market competition and the strengthening of blockchain products and services, these need to be prepared. IT team members also need to understand "the potential failure of early technology or functionality in the blockchain platform market."

Whether Gartner’s predictions will come true, time will tell us the answer, but for blockchain technology, this is an interesting time.

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