Over the past, we have seen a sudden boom in the growth of blockchain technology over various industries across the world. As soon as it launched on the global scale, blockchain technology was seen as the cure-all for all the issues that the corporate culture was facing. It was hoped that blockchain would revamped the entire internal infrastructure of customer interaction, supply chain etc., but as we have seen from the actual outcomes, the corporate spearheads seem to hold back on employing this technology at their core. Blockchain is not seeing the outbreak it was expecting to see, owing to all the problems it faces in the form of lack of compatibility and standards.
Almost all major corporate heavyweights across the world have their own departments researching about the employment of blockchain in their frameworks, but according to a research firm, Forrester Research Inc., it is suggested in a report that most of the companies will step back on their decision of testing blockchain technology, and almost 90% of the experiment being carried out in the organizations regarding blockchain will never get accepted in the company’s framework. A lot of major companies are back-tracking and are scaling down their initiatives regarding blockchain.
One such example of a company scaling down on its intent of deploying blockchain in its framework is Nasdaq Inc. Nasdaq has previously expressed its desires of deploying the blockchain technology in the voting mechanism during shareholder meetings and in the procedure for issuing private-company stock, but as we see now, their is no widely deployed project of Nasdaq Inc. that might be employing blockchain technology. The organization which has such a big name in the industry of cryptocurrencies and blockchain isn’t applying the highly acknowledged cutting-edge technology in its big projects.
The Senior Vice President and head in the department of product management for market technology, Magnus Haglind expressed his remarks on this in an interview stating that it all takes time. The expectation was to find the use cases as soon as possible and deploy them, but certainly that did not happen. He stated that:
The expectation was we’d quickly find use cases. But introducing new technologies requires broad collaboration with industry participants, and it all takes time.
The blockchain technology provides a transparent layer for tracking everything and provides a tamper-proof system of distributed ledger with everything out in the open, which can easily be used to keep track of products, customers etc., but in the actual world, this technology has proved to be far more difficult to adopt than expected.
Regarding the hype that blockchain created and its actual use, one of the analyst at Gartner Inc., Rajesh Kandaswamy stated that:
The disconnect between the hype and the reality is significant — I’ve never seen anything like it. In terms of actual production use, it’s very rare.
As per the spending concerned with the blockchain technology, IBM and Microsoft are the biggest organizations in this race. IBM and Microsoft have swept up most of the blockchain market, other companies have shown restraint regarding the adoption of blockchain. IBM and Microsoft are continuing their exploration of this new world, but as we see some restraint shown by corporate companies regarding the usage of blockchain technology in their frameworks, it comes as a bad news for software giants working on providing the blockchain-based services of supply chain, send and receive payments and customer interactions.
As more and more corporate spearheads back-track from the usage of blockchain in their frameworks, the estimates made by blockchain-based service developers regarding revenues and usage might need to be brought down. Roger Kay, President of Endpoint Technologies Associates stated that:
Blockchain is supposed to be an important future revenue stream for IBM, Microsoft and others in equipment sales, cloud services and consulting. If it materializes more slowly, analysts will have to make downward revisions.
According to the vice president of blockchain technologies at IBM, the company might be affected by the competition that is arising in the field of blockchain development, and the charges put by IBM on its client regarding the usage of its blockchain-based products and services might get affected as a result.
On the other end, despite growing competition and less corporate interest as of yet, Microsoft has expressed a positive outlook towards the growth of its blockchain sector. The company stated that:
We see tremendous momentum and progress in the enterprise blockchain marketplace. We remain committed to developing cutting-edge technology and working side-by-side with industry leaders to ensure business of all types realize this value.
As blockchain technology has just erupted on the global scale and the problems associated with technology are still large in number, corporate spearheads across the world are holding back on using software based on blockchain technology in their projects. One of the reason for companies not taking up blockchain-based software and products is incompatibility. Vendors are still not capable enough of providing companies with software having perfect compatibility. This issue can prove to be a beholding factor for companies regarding vendors. As their is no certification testing program for blockchain-based products available yet, the standard for comparison is unavailable for products.
Another shortcoming is the inability of the blockchains to perform many transactions at once in large volumes, a very core demand for most of the companies across the world. The main usage of blockchains as of yet mostly revolves around certain projects with tested use cases. As businesses need to communicate with each other on a larger scale, the deployment of same blockchain for different parties might not be an agreeable option at a bigger scale.
Their are a lot of limitations and problems associated with the blockchain-based technological products as most of the companies are reluctant towards their usage. Every company wants to see a successful case of blockchain in usage at a larger scale before testing it in its own framework. Regarding the current scenario, Brain Behelendorf, Executive Director of Hyperledger stated that:
They want to see other people fail first — they don’t wanna be a guinea pig. It’s just the nature of enterprise software.
All in all, the growth and incorporation of blockchain technology in corporate sector is not as much as expected, but as we move into the future with more standards introduced for blockchain, we might see a positive upward trend for blockchain employment in industries in the near future.