"Blockchain is currently descending towards the Valley of Disillusion in Gartner's latest Emerging Technologies Trend Cycle," says Adrian Leow, Research Director at Gartner. “The market for Blockchain platforms and technologies is still in its infancy and there is no consensus in the industry on the main components, such as the product concept, the feature set and the main application requirements. We do not expect that there will be a single dominant platform in the next five years ”.
To successfully carry out a Blockchain project, it is necessary to understand the causes that can lead to possible problems. Therefore, Gartner has identified the seven most common mistakes in Blockchain projects and will disclose during the Gartner IT Symposium / Xpo ™ 2019 event how to avoid them:
1) Not understanding or misusing Blockchain technology: For Gartner, most Blockchain projects are used exclusively to record data on Blockchain platforms using Decentralized Ledger (DLT) technology, ignoring key features such as decentralized consensus, use of tokens or smart contracts. “DLT is a component of the Blockchain, not the entire Blockchain. The fact that organizations so rarely use the full feature set of this concept raises the question of whether they really need Blockchain, ”says the Gartner analyst. "It's good to start with DLT, but the priority for CIOs should be to clarify the use cases for Blockchain as a whole and move on to projects that also use other components of the concept."
2) Believe that the technology is ready for use in production: The market for Blockchain platforms is huge and comprised of fragmented offers that try to differentiate themselves in several ways. Some focus on confidentiality, some on tokens and others on universal computing. Most are too immature for large-scale production work that incorporates monitoring systems and requirements, security and network management services. However, this will change in the years to come. CIOs must monitor the evolving resources of Blockchain platforms to align the timeline of their Blockchain projects.
3) Confuse a protocol with a business solution: Blockchain is an entry-level technology that can be used in various sectors and scenarios, from the supply chain to the management of medical information systems. It is not a complete application, as it must also include features such as the user interface, business logic, data persistence and interoperability mechanisms. “When it comes to Blockchain, there is an implicit assumption that entry-level technology is not far from a complete solution. This is not the case. The basic concept helps to visualize Blockchain as a protocol to perform a certain task within a complete application. No one would assume that a protocol could be the sole basis for an entire e-commerce system or a social network, ”explains Gartner's Director of Research, Adrian Leow.
4) Visualize the Blockchain purely as a database or storage mechanism: Blockchain technology was designed to provide a reliable, immutable and secure record of events arising from a dynamic collection, produced by untrusted parties. This design model comes with the price of database management features. In its current form, Blockchain technology does not implement the complete “create, read, update, delete” model found in conventional database management technology. Instead, only "create" and "read" are supported. “CIOs must assess the data management requirement of their Blockchain project. A conventional data management solution may be the best option in some cases, ”says the Gartner analyst.
5) Suppose there are interoperability standards: Although some blockchain technology platform providers indicate connection with other 'blockchains', it is difficult to predict interoperability when most platforms and their underlying protocols are still being designed or developed. Organizations should follow up on vendor discussions regarding interoperability as a marketing strategy. This option is supposed to benefit the supplier's competitive position, but it will not necessarily provide benefits for companies. "Never select a Blockchain platform with the expectation of interoperating with another vendor's next year's technology," warns the analyst.
6) Assume that smart contract technology is a problem solved: Smart contracts are perhaps the most powerful aspect of Blockchain activation technologies. They add dynamic behavior to transactions. Conceptually, smart contracts can be understood as stored procedures associated with specific transaction records. But, unlike a stored procedure in a centralized system, smart contracts are executed by all points of a complex network, creating scalability and management challenges that have not yet been fully explored. Smart contract technology will still undergo significant changes. For this reason, CIOs should not plan for full adoption, but they should be running small experiments already. Gartner predicts that this area of Blockchain will continue to mature in the next two or three years.
7) Ignoring governance issues: Although governance issues in private Blockchain environments or with permission are generally handled by the Blockchain owner, the situation is different with Public Blockchain. Governance in public Blockchain environments, such as Ethereum and Bitcoin, is primarily geared to technical issues. Human behavior or motivation is rarely addressed. “CIOs should be aware of the risks that blockchain governance issues can pose to the success of their projects. Larger organizations in particular should consider joining or forming consortia to help define governance models for the public blockchain, ”says the Gartner analyst.
About 1,900 IT and business executives will follow research and discussions on the topic during the Gartner IT Symposium / Xpo ™ 2019, the most important event for IT executives in the world, which will take place from October 28 to 31 in São Paulo (SP) ). Until September 20, Gartner offers a discount of R$ 700.00 for registration. Interested in participating in the event should contact via e-mail conferencias.brasil@gartner.com, by telephones (11) 5632-3109 and 0800-7741440, or through the website https://www.gartner.com/pt-br / conferences / la / symposium-brazil.
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