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Corporate America Cools On Blockchain. Gartner Sees 'Disconnect Between Hype and Reality' (bloomberg.com)
"Corporate America's love affair with all things blockchain may be cooling," reports Bloomberg. An anonymous reader quotes their report. [Alternate version here.]
A number of software projects based on the distributed ledger technology will be wound down this year, according to Forrester Research Inc. And some companies pushing ahead with pilot tests are scaling back their ambitions and timelines. In 90 percent of cases, the experiments will never become part of a company's operations, the firm estimates. Even Nasdaq Inc., a high-profile champion of blockchain and cryptocurrencies, hasn't moved as quickly as hoped. The exchange operator, which talked in 2016 about deploying blockchain for voting in shareholder meetings and private-company stock issuance, isn't using the technology in any widely deployed projects yet...
"The disconnect between the hype and the reality is significant -- I've never seen anything like it," said Rajesh Kandaswamy, an analyst at Gartner Inc. "In terms of actual production use, it's very rare...." Only 1 percent of chief information officers said they had any kind of blockchain adoption in their organizations, and only 8 percent said they were in short-term planning or active experimentation with the technology, according to a Gartner study. Nearly 80 percent of CIOs said they had no interest in the technology. Many companies that previously announced blockchain rollouts have changed plans
Problems include the fact that most blockchains "also can't yet handle a large volume of transactions," and worries about compatibility with other software -- which some hope to address next year with software certification testing. But at least two big tech companies are aggressively pushing blockchain.
"So far, IBM and Microsoft have grabbed 51 percent of the more than $700 million market for blockchain products and services, WinterGreen Research Inc. estimated earlier this year,"
"The disconnect between the hype and the reality is significant -- I've never seen anything like it," said Rajesh Kandaswamy, an analyst at Gartner Inc. "In terms of actual production use, it's very rare...." Only 1 percent of chief information officers said they had any kind of blockchain adoption in their organizations, and only 8 percent said they were in short-term planning or active experimentation with the technology, according to a Gartner study. Nearly 80 percent of CIOs said they had no interest in the technology. Many companies that previously announced blockchain rollouts have changed plans
Problems include the fact that most blockchains "also can't yet handle a large volume of transactions," and worries about compatibility with other software -- which some hope to address next year with software certification testing. But at least two big tech companies are aggressively pushing blockchain.
"So far, IBM and Microsoft have grabbed 51 percent of the more than $700 million market for blockchain products and services, WinterGreen Research Inc. estimated earlier this year,"
Because 'blockchain' sounds better than 'redundant distributed database', a term (and technology) that's been around & constantly improved for ages.
Buzzword bullshit does not create reality, unless you are in the Cult of the Orangutan.
"God bless America"
was invented by false and unknown prophet.
"America must bless Jesus, son of God and Mary"
Lets go back to my dotcom business model.
Because almost no one in the corporate world even understood what "blockchain" even means. They heard and saw a bunch of hype, they were afraid of missing the bandwagon, so they just reflexively "adopted" it.
It's very similar to the era where if you "had a website", your lack of a business plan or completely idiotic business plan, everyone jumped because "websites are going to be big!" Nobody know what they were really getting then, either, hence. Pets.com. etc.
Someone writes this article right after corporate America Starbucks (crypto will be first worldwide currency) and microsoft double down on blockchain and nyse owner has a huge announcement to back bitcoin with real purchases for futures. You guys are just funny with the trolls. In five years you will be left in the dust.
https://youtu.be/9AajslFuPro
You are welcome on my lawn.
Why would they ever have made the assumption that adding "...with blockchain" was automatically going to increase profits in any way? Instead of coming up with new patents or products I should switch to manufacturing buzzwords for a living.
who's stock value increased well about 100% when they announced plans to do their own microcurrancy and Blockchain implementation.
All of that gain and another 40% decrease plummeted their stock value when they announced: "Just kidding."
As with every new technology there come a lot of people who are willing to get VC money under the pretext of changing the world for the better and inventing the things which will net insane profits and blockchain is no different.
I'm not sure too many people have suddenly cooled on blockchain. More like journalists have failed to unveil a hype with little to no substance in time. I'm not saying the technology is useless, I'm just saying that blockchain just cannot solve all the world problems, yet it's exceptionally useful for certain areas of our existence. BTW, Git SCM is a good example of blockchain, yet no one talks about that and it was first released long before Bitcoin. systemd-journal also uses a sort of blockchain to store its log files.
Then we obviously have Bitcoin/Ethereum and several hundred of altcoins which still are very much alive, though people still don't trust them because there's no recognized authority behind them (math and science have fallen out of grace recently) and people prefer fiat money which is ostensibly backed by central banks (but we all know how it works, how it sometimes fails to work and how it's susceptible to manipulation, dirty games and trillion dollars bailouts).
That is a pretty good description of an awful lot that is going on in tech these days. The next bubble is going to be a mother when it bursts. It's unbelievable what people have fallen for.
I'm torn here.
Because with blockchain, your power bill quadrupled.
"The disconnect between the hype and the reality is significant -- I've never seen anything like it," said Rajesh Kandaswamy, an analyst at Gartner Inc.
That's pretty much the case for most things Gartner sings the praises of from the rooftops. Gartner and IDC's business is largely made at senselessly hyping things up to scare companies into paying them for analyst insight on 'the new hot thing' that they don't get, but must be important....
XML is like violence. If it doesn't solve the problem, use more.
And this is why Gartner is full if it. They are part of the hype train. They are part of the constant annoyance of C*O to lower level employees to jump on the train and not address the real issues.
It's not like this hasn't happened before... The best known previous example is the "Business X, except on the internet" that was all the rage during the dot.com boom and I'm pretty sure everyone here on slashdot remembers what happened when people finally wised up on it.
Sure, there were some actually viable and profitable businesses that came out of it, but most of the businesses that got investors excited were garbage companies with no viable path to profitability. Thus when they finally figured out that being on the internet wasn't some magical thing that couldn't fail the end the result was truly brutal and it's not like the average quality of bitcoin startups is any better than the average quality of blockchain startups.
"Why should I want to make anything up? Life's bad enough as it is without wanting to invent any more of it."
Same hype on the cooling as on the heating. ying and yang. blockchain is a tool for B2B networks there are plenty of big time projects people dont talk to the media about because its not a get rich quick technology. its a platform to reduce costs of reconciliation and stuff like that between business entities.
its fast enough if you dont use proof of work public consensus. hashgraph is pretty fast.
you bandwagon riders love to ride up and down even. serious engineers knows its a tool and where it fits
Basically, whether you call it "distributed redundant database" or "blockchain," it's something that does NOT lend itself to the monopoly dream all of the corporations have. It is neither owned nor controlled by one single party, so the Party of Greed, aka Corporate America, simply cannot abide it.
I was working a contract where some of the tech leads were heavily pushing block-chain as a solution to many of the organizations problems. Chiefly they were looking to solve issues with non-repudiation and centralization of records. The hitch in their whole plan was they primarily dealt with homeless individuals, who (shock) often don't have access to computers or smartphones, much less own one. When I asked them how these individuals would maintain their keys for signing (critical for non-repudiation to have any meaning)... "we'll manage the keys for them". Okay, then what are the block chains going to be distributed/stored "our equipment of course". At that point, I told them they really needed to run this "solution" past lawyers versed in the technology and just checked out of the conversation. They weren't looking to actually solve the problems, they wanted to play with shiny new toys.
Which actually brings up another issue with blockchain solutions that I don't see addressed often. There's very little case law I'm aware of that clarifies if blockchains would actually be suitable as evidence of transactions or contracts in court and under what conditions. With a well defined and controlled infrastructure I think it's pretty easy to prove that party A and party B both signed and it's binding, but if the situation was more like above where key control was not compartmentalized it could get very messy in a hurry. If I'm managing millions of dollars in transactions (which they were), I'd want to be certain of what the requirements were before I implemented something, was taken to court and had my solution deemed "inadequate as proof" and was left on the hook for the money in question (which happens frequently with their current paper based solution... so you would think they'd learned their lesson).
They were all jumping on the blockchain bandwagon when Bitcoin was approaching $20,000 last year, now that it's dropped over 50%, they don't want anything to do with it.
Really? You asked it before? Did you ask Google? I did and I got quite a few answers. You might argue with them, but I can't believe you're honestly asking for blockchain uses.
The fact t that 81% of all mining takes place in one country, China, which is under totalitarian control. The blockchain ledger contains what they want it to contain. And blockchain has serious scaling problems as well. Supposedly a "distributed" system, most transactions take over an hour to verify if one has downloaded and users their own local blockchain ledger. Most cryptocurrency owners avoid the use of local ledgers by using "wallets" which connect to the ledger on a blockchain server accessed by tens of thousands - no distribution there.
Major blockchain myths and the limitations they impose are discussed in the link below.
https://www.kaspersky.com/blog...
tldr; blockchain is, essentially,, a giant Ponzi Scheme masquerading as digital money. He how created it and those who jumped in early made off with the money of the late arrivals who were blinded by dreams of getting rich quick. Eventually, most government will outlaw its use.
Running with Linux for over 20 years!
Wrong.
Corporations don't contest money put into or taken out of accounts or put into transactions, they don't contest your home address, phone number, credit card....
You're someone implying they want to falsify something. Bullshit, that's not how most corporations make money.
The issue is the bottle necked architecture.
Quit pushing blockchain as a solution for normal business databases, it isn't. It's a very shitty low-performance distributed database that is ill suited for most business use.
Gartner sells research and business consulting on Blockchain and makes lots of money doing it.
Why would someone take dating advice from a car salesman?