New Delhi: The interest and demand for Blockchain technology is growing. A December report by Markets and Markets, suggests Blockchain market size is expected to grow from $1.2 billion in 2018 to $ 23.3 billion in 2023. However, to stay viable in the face of the growing competition and security threats, existing Blockchain platforms will need to re-invent themselves.
According to a more recent Gartner report, 90% of current enterprise Blockchain platform implementations will need replacement by 2021 or face obsolescence.
As enterprises’ interest in Blockchain technology will grow, so will the number of new Blockchain platform vendors. “Due to the lack of an industry consensus on product concept, feature set, core application requirements and target market, we do not expect there to be a single dominant Blockchain platform within the next five years. Instead, we expect a multi-platform world to emerge," said Adrian Lee, senior research director at Gartner.
This fragmented nature of Blockchain platform market is also making technology choices difficult for enterprises. The report points out that Blockchain platform market offers fragmented offerings that often overlap or are being used in a complementary fashion. Lee explains, the fact that Blockchain platform vendors typically use messaging that does not link to a target buyer’s use cases and business benefits adds to the confusion.
“For example, ‘transactions’ was the term mentioned the most in relation to Blockchain, followed by ‘secure’ and ‘security.’ While these may be functions of Blockchain-enabling technology, buyers are still confused as to how these functions are achieved or what benefits Blockchain adds compared to their existing processes," adds Lee.
Also, many CIOs overestimate the capabilities and short-term benefits of Blockchain technology and end up having unrealistic expectations when subscribing to services from Blockchain platform vendors.
The report further claims, the business value added by Blockchain will grow to slightly more than $176 billion by 2025 and might even grow to $3.1 trillion by 2030.
Lee advises product managers to be prepared for rapid evolution, a shifting competitive landscape, future consolidation of services and the potential failure of early stage technologies in the Blockchain platform market.
A July 2018 report by Gartner pointed out that most of services available in the market in the name of Blockchain solution lacks at least two of the five core components of the technology which includes encryption, distribution, decentralisation, immutability and tokenisation. Security is also going to be a challenge due to lack of best practices and standards.