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99% of businesses haven't built anything with blockchain

451 Research: 'Blockchain-washing' is rife, with only 1% of organisations building practical applications

blockchain

Just 1% of businesses have developed applications based on blockchain, according to research that suggests a lack of skills and industry knowledge has meant the vast majority of companies are struggling to use the technology.

While more than a quarter of 600 organisations surveyed were experimenting with blockchain, and 20% were evaluating its potential uses, just 4% said that they were running trials and pilot programmes, with even fewer having built useful applications.

The 2017 Voice of the Enterprise Cloud Transformation Vendor Evaluations study, carried out by analyst house 451 Research, also found that a further 4% of businesses were either testing applications in a development environment or undertaking the initial rollout phase of an application.

"Ultimately blockchain will do for transactions what the internet has done for information," said Csilla Zsigri, author of the study and senior analyst at 451 Research. "It promises to disrupt business models and entire industries. It allows for increased trust and efficiency, and is pushing us to challenge how we define and exchange value and reward participation."

However, the report added that many of the applications being developed by organisations are failing to capitalise on the technology's potential. "Blockchain-washing" has now become rife, according to the report, with applications being needlessly based on blockchain that could have been developed using existing systems that are tested and proven.

Similarly, a Gartner report published in October found that despite industry hype around distributed ledger technology, it was low down on IT directors' list of priorities. Financial sector CIOs ranked 19 other technologies above blockchain when it comes to developing technology that could differentiate their businesses.

Although blockchain was seen as a potential future disruptor, BI and analytics continue to be the primary focus of banking institutions around the world when it comes to digital transformation, according to Gartner, as current blockchain solutions fail to differentiate their businesses in a meaningful way.

"Despite the attention and visibility [of blockchain], it is not yet seen as a differentiating technology for banks. That may change in the near future," Gartner noted in its news release for the research.

However, recent LinkedIn data showed that the number of blockchain-based jobs appearing on the site has more than trebled over the past year, with blockchain ads growing more than 40% each quarter.

Picture: Bigstock

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