Research firm Gartner predicts that by 2030 Blockchain will generate more than $3.1 trillion in new business value worldwide, half of which by 2025 with applications designed for operational improvement. However, companies can make mistakes that prevent them from fully benefiting from Blockchain, for example in the event of a threat of competition by using the wrong strategy or being lulled by a false sense of the progress and possibilities of Blockchain. That is why Gartner has written a business handbook about Blockchain for managers.
“In addition to operational improvements and increased efficiency, fully mature Blockchain solutions enable organizations to redefine business relationships, make money from illiquid assets and redistribute data and value streams to be more successful in the digital society. That’s the real work of Blockchain, “says David Furlonger (photo), Gartner vice president.” To unlock this potential, CIOs must use a framework to help their organizations control the timing of investments and value proposition for Blockchain use, understanding of different archetypes of solutions. “
Gartner created the Blockchain Spectrum to investigate the phased evolution of Blockchain solutions and how this path connects with the expected value that companies can achieve. In the book “The Real Business of Blockchain: How Leaders Can Create Value in a New Digital Age,” recently published, Mr. Furlonger and co-author Christophe Uzureau, vice president at Gartner, spectrum as one of many analysis models to reveal how Blockchain will evolve from what it is today to what it will be by 2030.
Furlonger and the Uzureau discuss some of the most important findings from the book at Gartner IT Symposium / Xpo, which will be held in Barcelona until Thursday, November 7.
According to Gartner analysts, the Blockchain Spectrum consists of four evolutionary phases that segment solutions and characteristics of solutions, some of which will not develop fully for years, but will have critical implications for the future of business and society. Each of these phases presents opportunities and risks, but CIOs must begin to experiment with Blockchain at a certain level based on a clear understanding that the choices they make will have a significant impact on the competitiveness of their enterprise and their respective industries.
Blockchain activating technologies
These technologies form the basis on which existing future Blockchain solutions can be created and business modeled. This basis can also be used as part of non-Blockchain solutions; for example, to improve operational efficiency. The fundamental technology includes cryptography, distributed computing, peer-to-peer networks and message exchange.
In 2012, business leaders, primarily in financial services, began to explore Blockchain through proofs of concepts (poc) and pilots. This phase lasts until the early 2020s. Blockchain-inspired solutions use fundamental technologies, but use only three of the five elements of blockchain distribution, coding, and immutability. Although some of these solutions use tokenization, they are not decentralized enough to use such tokens to create new value exchange systems as part of the value web. As a result, these solutions are often aimed at redesigning existing processes that are specific to an individual organization or industry while maintaining centralized controls.
Blockchain-complete solutions deliver the full value of blockchain with the help of all five elements – distribution, coding, immutability, tokenization and decentralization. Blockchain-complete solutions have made tokenization possible through smart contracts and decentralization, two components that lack Blockchain-inspired solutions. These solutions make it possible to trade in new forms of value (such as new types of assets) and unlock monopolies on existing forms of value advertising processes (such as digital trade or digital advertising).
“There are very few regular organizations that build blockchain complete solutions. However, many startups that offer Blockchain native solutions do this, and some will gain market momentum by the beginning of 2020, with more scale after 2025, “says Uzureau. “Although not immediately, the distribution of blockchain-complete solutions will encourage organizations to explore new ways of working with a greater degree of decentralization than now.”
After 2025, complementary technologies such as Internet of Things (IoT), artificial intelligence (AI) and decentralized self-sovereign identity (SSI) solutions will come together and be more integrated with blockchain networks. The resulting improved blockchain solutions will expand the type of customer and the value that can be tokenized and exchanged and enable a large number of smaller transactions that would not be possible with traditional mechanisms.
“The evolution of blockchain cannot be ignored,” Furlonger says. “Blockchain-complete solutions will start gaining strength in around three years, around 2023. In the future, a business and social environment with IoT and AI will be created in which autonomous and intelligent things or ‘things’ have assets and commercial value. Business executives who don’t do scenario planning or experiment with the technology, and postpone consideration of the two basic blockchain components, decentralization and tokenization, run the risk of not being able to adjust their organization when Blockchain grows up. ”