Industry faces ‘blockchain fatigue’

From Logistics Manager Magazine,
Published Tuesday 7 May 2019 2:54 pm

Nine out of ten blockchain-based supply chain initiatives will suffer “blockchain fatigue” by 2023 owing to a lack of strong use cases, according to research by Gartner.

A survey of users wants and needs found that only nine per cent of respondents have invested in blockchain, while only 19 per cent regard it as a very important technology for their businesses.

Gartner’s Alex Pradhan pointed out that most supply chain blockchain projects had remained pilot projects due to a combination of technology immaturity, lack of standards, overly ambitious scope and a misunderstanding of how blockchain could, or should, actually help the supply chain.

“Inevitably, this is causing the market to experience blockchain fatigue.”

The budding nature of blockchain makes it almost impossible for organisations to identify and target specific high-value use cases, according to Gartner. “Instead, companies are forced to run multiple development pilots using trial and error to find ones that might provide value. Additionally, the vendor ecosystem has not fully formed and is struggling to establish market dominance. Another challenge is that supply chain organisations cannot buy an off-the-shelf, complete, packaged blockchain solution.”