Blockchain gartner 2018

Analyst s : David Furlonger , Rajesh Kandaswamy. The Gartner CIO Survey provides factual evidence about the massively hyped state of blockchain adoption and deployment. Enterprise architecture and technology innovation leaders should use these results to temper solution provider enthusiasm and manage business expectations. All rights reserved. Gartner is a registered trademark of Gartner, Inc. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information.

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Content:

• Blockchain and the GDPR – Irreconcilable Foes or A Partnership with Great Potential?
• Blockchain past peak in Gartner hype cycle
• Flying cars, AI and blockchain: These are the top tech trends in Gartner’s 2018 Hype Cycle
• Gartner Hype Cycles
• Global IT spend to touch $3.68 trillion this year: Gartner
• Blockchain Primer for 2018
• Hype Cycle for Blockchain Technologies, 2018

WATCH RELATED VIDEO: Bart Melink (Gartner): 'Blockchain is still VERY immature' - Interview BIC18

Blockchain and the GDPR – Irreconcilable Foes or A Partnership with Great Potential?

Welcome to Finextra. We use cookies to help us to deliver our services. We'll assume you're ok with this, but you may change your preferences at our Cookie Centre. Please read our Privacy Policy. CIOs of companies are increasingly showing their interest in blockchain technology.

Some more than others. This is not surprising given the fact that blockchain may bring a number of great opportunities for enterprises, ranging from improvements in business processes to a complete overhaul of business models. Within corporates there is a growing focus on the business challenges that blockchain could solve.

CIOs however struggle with the issue of how and where to apply this technology as understanding is far from complete. While this technology is developing and changing fast, the features of blockchain are not yet fully mature, and current frameworks are far from adequate. Looking at the various blockchain solutions that are coming to the market there is a lot of confusion which one would really meet the needs of companies when making up their decisions.

This makes it for CIOs a very complex exercise. PwC PricewaterhouseCoopers recently launched a survey amongst a large number of CIOs from various industries on their attitude towards blockchain.

It gives us some interesting insights about the CIOs present view on blockchain technology. This survey shows that many CIOs embrace blockchain. Not surprising given the enormous hype surrounding this technology. But the idea what blockchain really means for their company and how it should be implemented is still rather limited.

Looking more detailed into the survey results a very diverse picture of how companies are involved arises. For many CIOs blockchain is not yet a priority, at least compared to other new technologies including AI, Big Data analytics, and cloud. Most blockchain initiatives today are Proof of Concepts PoCs that do not have real value. The existing models for blockchain that corporates operate are immature and therefore not suited to realise the various capabilities of blockchain technology.

They offer little or no decentralization and tokenization, being the most valuable features of blockchain. As with any emerging technology, and notwithstanding the great potentials blockchain could bring, ICOs however see a large number of challenges, having doubts and concerns thereby creating barriers to blockchain adoption. Even now, many executives are unclear on what blockchain really is and how it is changing the way they execute their of business.

Many interpretations of blockchain today suffer from an incomplete understanding of its capabilities. When looking more into detail, many CIOs have no real idea inadequate or incorrect understanding of capabilities of the scope of its impact on their business and what is needed to realise that, making them reluctant.

And there are concerns regarding a lack of standardisation, the potential lack of interoperability with other blockchains and the inability to scale. And what does the well-known Gartner Hype Cycle tells us. Industries have made some progress, but maturity timelines are uncertain, and adoption at scale remains very scarce. CIOs who want to make good investments in blockchain need a clear model of the blockchain universe, its evolution, and various aspects of technologies and their importance.

CIOs must understand the full spectrum of blockchain possibilities. This in order to maximize success. Gartner Blockchain Tools for CIOs In order to give CIOs of companies that are making up their mind for blockchain introduction a tool that could help them in their journey towards a well-defined solution, Gartner has introduced the Blockchain Spectrum and the Blockchain Conceptual Model.

The Spectrum will thereby clarify different solutions for four main phases: blockchain-enabled, blockchain-inspired, blockchain-complete and blockchain-enhanced solutions.

This tool should give CIOs a better understanding of where we really are in the Gartner Blockchain Hype Cycle and its future evolution. This Conceptual Model shows the scope of transformation enabled by blockchain and its key aspects.

Blockchain technologies offer a set of technology infrastructure components such as distributed ledger, decentralised consensus, connectivity, connectivity encryption, protocols and tokenization.

These allow for a set of capabilities to build digital systems, including DApps, self-sovereign identity, smart contracts, smart assets, DAOs, and others. These capabilities, while influenced and constrained by a set of externalities industry, geography, regulation, customer , can be used to achieve a set of pre-defined outcomes for the company and the blockchain ecosystem. The solutions in the first and second phase are only limited in their use.

More interesting for CIOs are the third phase of blockchain-complete solutions and the fourth one named the blockchain-enhanced phase. Each of these phases offers opportunities and risks, but CIOs should begin experimenting at some level. These blocks can also be used as part of non-blockchain solutions, for example, to improve the operational efficiency of distributed data management systems.

There they have only limited distribution capabilities to a small number of nodes either within or between enterprises.

These technologies may provide the building block foundation upon which future blockchain solutions can be created. Blockchain-inspired solutions: We are now in the phase of blockchain-inspired solutions. These are usually designed to address a specific operational issue.

Most enterprise blockchain solutions available today fall into this category. In fact they largely replicate existing centralized enterprise systems. While this enables enterprises to experiment with blockchain, and could potentially solve challenges like fraud mitigation and reconciliation reduction, they do not take advantage of the great potential of blockchain in terms of decentralisation.

CIOs therefor need to investigate if the investment actually offers a better solution than traditional options. Blockchain-complete solutions: s Blockchain-complete solutions, are expected to start in the early s. They will feature all the key capabilities of blockchain and attempt to deliver a full value proposition including tokenization and decentralized operational structures.

These solutions will open the way to completely new business models that use smart contracts. Blockchain-enhanced solutions: Post In this fourth phase but that is still rather far away , blockchain solutions will be brought to the market that will fundamentally change business models. In these solutions smart contracts will have real autonomy and advanced technologies will enable exchanges and transactions that are not possible yet. This phase will start to see Decentralized Autonomous Organizations DAOs and micro transactions performed by machines.

How should CIOs approach the blockchain issue? It is however not a good idea for CIOs to simply wait for full-blown fledged blockchain solutions to appear.

Unlike most emerging technologies, blockchain can bring dramatic changes to their business and operating models and they have to prepare for that. Given the far-away horizon for complete and inspired blockchain solutions, CIOs take a carefully thought-out approach with blockchain. They should be careful about the assumptions they have going into various use cases.

It is therefore very important for CIOs to understand how blockchain will evolve until They need to evaluate blockchain technologies sceptically, category by category, and product by product.

The greatest challenge for CIOs will be thinking about and working towards a new blockchain-based business model. PwC has come up with a strategic approach. By focusing on a number of key areas early in their blockchain efforts, CIOs can lay the foundation toward successful execution. These areas include: make the blockchain business case, build an industry ecosystem, determine the rules of engagement, and, navigate regulatory uncertainty Make the blockchain business case.

Make the business case First of all CIOs should give strategic clarity when presenting their business case. This should ensure that their blockchain initiative has a business purpose around which they and other participants can align.

For that it is needed to identify the business value. Build an industry ecosystem. Build an industry ecosystem In order to get the most out of blockchain, collaboration between previous competitors is key. This should result in building an industry ecosystem, aimed to meet industry-wide challenges. For that it is important that CIOs discover the benefits of collaboration. Design deliberately. Determine the rules of engagement A third area of attention is determine the rules of engagement.

Every blockchain will require rules and standards, particularly around what various participants will be able to access and how they can engage. CIOs should thereby explore potential blockchain models and chose that one that fits best. Navigate regulatory uncertainty. They should understand the shifting regulatory landscape. Though blockchain provides for a great number of opportunities, present solutions do not justify great investments at this time.

Although developing fast, it still has significant gaps in meeting business challenges to generate value. Therefore CIOs should keep their finger on the pulse.

Gartner Blockchain Spectrum could be a great tool for them, to come to the best decisions. Thanks, Carlo for these insights into use of block-chain technology. Indeed, despite the uncertainity surrounding the regulatory space, practitioners should not wait around.

Regulations always lag innovation - so CIOs should surely begin stratgeizing on how they want to leverage blockchain for their specific value proposition.

Elson M. Narmatha P. Kiruthika M. Praveen Ram. Blog article. News in your inbox For Finextra's free daily newsletter, breaking news and flashes and weekly job board. Sign Up. Blockchain Observations. External what does this mean? This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.

Blockchain past peak in Gartner hype cycle

Whenever a new innovation like Blockchain comes along and starts to create large sums of money for those who are able to take advantage of it, it tends to receive intense scrutiny from people in power. After it was successfully applied for the cryptocurrency, financial institutions begin seriously considering Blockchain adoption for traditional banking operations. In recent PWC report , 77 percent of financial institutions are expected to adopt Blockchain technology as part of an in-production system or process by Though the concept of Blockchain is simple, it will bring considerable savings for banks. Blockchain technology will allow banks to reduce excessive bureaucracy , conduct faster transactions at lower costs, and improve its secrecy. One of the Blockchain predictions made by Gartner is that the banking industry will derive 1 billion dollars of business value from the use of Blockchain-based cryptocurrencies by

Flying cars, AI and blockchain: These are the top tech trends in Gartner’s 2018 Hype Cycle

Understand how blockchain will evolve until and todays hype versus reality. Generally, anyone looking to open a restaurant would need to go to various government agencies to obtain the required certifications. For each of these certifications, the owner will have to produce essentially the same documentation. Rather than control all the data itself, the Victorian government developed a decentralized system. This means owners now control all of their information and the consent switches to the individual. Not only can the government agency then verify the information, the owner can control who has access to the information and for how long. Additionally, the system is portable, allowing owners to open a restaurant in a different city using the same information.

Gartner Hype Cycles

Gartner's vice president and fellow, David Furlonger believes the findings prove Blockchain deployment is overhyped and that there is a 'maverick' nature within its developer community. Furlonger added that rushing into blockchain deployments could lead organisations to significant problems of failed innovation, wasted investment, rash decisions and even rejection of the potentially game-changing technology. There are endless possibilities in the use of blockchain and it has already been implemented by companies like IBM, Oracle and Microsoft. The tech can be used in cross-border payments, smart contracts for the sale and purchase of assets, secure records-keeping, medical data, and the simplifying supplier history.

Global IT spend to touch $3.68 trillion this year: Gartner

The research, which punctures a lot of the hype about where blockchain currently is in terms of real adoption, is contained in its CIO Survey. The news brings into stark contrast the huge amount of discussion about the use of blockchain technology, which does indeed have several highly valuable and significant capabilities , especially when there are issues around trust and data record permanence. Its use could also greatly reduce the cost of financial transactions. The legal world has seen a surge of interest in blockchain tech, as have other areas, especially in banking, insurance and also logistics. Several consortia focused on law and blockchain have also developed in recent years.

Blockchain Primer for 2018

With drawing to a close, Gartner is looking to the future. The top 10 strategic technology trends , according to Gartner, are:. In addition, the organization also announced top predictions for IT organizations and users over the next couple of years. AI , AR , artificial intelligence , augmented reality , blockchain , CARTA , cloud , conversational platforms , digital transformation , digital twin , edge computing , Gartner , immersive experiences , intelligent apps , intelligent things , Internet of Things , IoT , machine learning , mixed reality , technology trends , virtual reality , VR. She is responsible for the oversight of the daily news published to the website as well as the company's weekly newsletter, News on Monday.

Hype Cycle for Blockchain Technologies, 2018

Analyst s : Rajesh Kandaswamy , David Furlonger. Blockchain technical capabilities are evolving, but fail to match the extreme hype and are not yet sufficient for mission-critical enterprise use. Blockchain-inspired solutions lead enterprise conversations. The market will traverse the Trough of Disillusionment before significant value is realized.

I was quietly relieved to read a recent report from Bloomberg about a slowdown in the corporate adoption of blockchain. As analyst firm Gartner long ago recognized, new technologies always seem to attract massively inflated expectations — and it is only once these have been brought down to earth that meaningful progress and maturity start to emerge place. Therefore, bursting the blockchain hype bubble is actually a good thing — it means the reality is starting to outshine the hype. The article says in-house pilot projects are being ditched due to issues with performance, oversight and operations.

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Yes, blockchain technology is the foundation of Bitcoin and other hipster cryptocurrencies. But computer scientists and business leaders think it has the potential to transform global commerce, law, politics, and more. Consider elections.