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“When Blockchain?” Survey Results Say Not Anytime Soon for Majority of Businesses

“When Blockchain?” Survey Results Say Not Anytime Soon for Majority of Businesses

Reading Time: 2 minutes by on May 5, 2018 Blockchain, Business, Commentary, Finance, News, Tech
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In the fast developing world of cryptocurrency trading, little is spoken about its underlying framework, the blockchain, the adoption of which could truly drive a decentralized movement. However, research released on May 3, 2018, suggests corporate apathy towards the technology’s acceptance.

Test Reveals Starling Results

According to a survey by U.S-based research and advisory firm Gartner, only a meager one percent of businesses are open to towards incorporating a decentralized ledger technology (DLT). The starling results went on to show that a minuscule eight percent of companies were “experimenting” with blockchain, and do not consider it as a part of their long-term plans.

Most surprisingly, over 77 percent of the test-takers said they had “no interest,” nor have any plans to migrate towards a blockchain-powered organization.

blockchain plans 2018

(Source: Gartner)

The data was collated from responses of more than 3,000 chief information officers (CIOs), from a variety of technology businesses.

The data goes to show that while cryptocurrencies are having their moment in the banking world, blockchain remains uncharted territory, fueled only by hype from the relatively tiny fragment of enthusiasts around the globe.

Elaborating this point is Gartner VP David Furlonger:

“This year’s Gartner CIO Survey provides factual evidence about the massively hyped state of blockchain adoption and deployment.”

However, the results don’t paint an entirely negative picture, as many respondents admitted to being “careful in approaching and implementing blockchain tech.”

Of the reported 293 CIOs considered blockchain for the short-term, 23 percent expressed their reasons for non-adoption. These reasons included the lack of skilled employees, the significant cost involved in training new employees, and cost of replacing the present IT infrastructure.

The concerns are echoed by Furlonger, who believes that organizations could “face wasted investment, or rejection of a technology, when they rush into blockchain deployments.”

Blockchain Requires a Whole New Skill-Set

The apprehensions of interested CIOs are not baseless, as blockchain is new technology and requires a deep understanding of its fundamentals, security, processes, and decentralized ethos.

Rushing into blockchain technology without a thorough understanding could lead organizations to face dejection regarding wasted investment, rash decisions, and eventual rejection.

According to Furlong :

“[Blockchain technology] therefore implies that traditional lines of business and organization silos can no longer operate under their historical structures.”

Crypto-Adopters = Blockchain Adopters

Unsurprisingly, industries with the highest cryptocurrency adoption rates noted a similar level of blockchain interests, as CIOs from telecom, financial services, and logistics being the most “involved” and “interested” in the technology.

For the traditional finance world, blockchain represents an improved method of keeping note of accounts, while the logistics and supply chain industry is waking up to the benefits of using a decentralized ledger for enhanced transparency, efficiency, and cost-effectiveness.

Players of the telecom industry are locked in an intense battle with rivals to own “wavelengths,” and blockchain helps with maintaining customer loyalty and ensuring private payments.

Furlonger concludes :

“While many industries indicate an initial interest in blockchain initiatives, it remains to be seen whether they will accept decentralized, distributed, tokenized networks, or stall as they try to introduce blockchain into legacy value streams and systems.”

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