Blockchain technology has turned into a phenomenon in today’s digital world. What was once an internet sensation has become the next phase of operational systems in private companies and local businesses.
Research firm Gartner predicts the so-called “Blockchain Fatigue” to settle in among the supply industry by 2023. Their statistics show about an estimated 90 percent in blockchain technology initiatives by businesses in the supply chain. Between 2020 and 2025, Gartner illustrated how blockchain technology would be incorporated in companies to the point of becoming program and 100 percent efficient.
2023 – Trough of Blockchain Disillusionment
Gartner set 2023 as the trough of disillusionment for blockchain technology. Gartner senior principal research analyst Alex Pradhan stated that “Supply chain blockchain projects have mostly focused on verifying authenticity, improving traceability and visibility, and improving transactional trust. However, most have remained pilot projects due to combination of technology immaturity, lack of standards, overly ambitious scope and a misunderstanding of how blockchain could, or should, actually help the supply chain.”
In other words, companies in the supply chain are more likely to struggle with showing the value of blockchain technology from an economic standpoint. Its value would be questioned, which would push the industry to solve this issue. “Inevitably, this is causing the market to experience blockchain fatigue, Pradhan suggested.
No Way to Scale
Telos Blockchain architect Douglas Horn expressed his thoughts regarding the public’s view of blockchain, “We have to look at the fact that a lot of these proof of concepts for the last year have never elevated to a useful piece. I think that’s very much ties to the fact that when people look at this, and they really do the maths, they’re realizing that there was, on the current platforms available at the time, simply no real way to scale.”
As a friendly reminder, Gartner advises companies “not to rush into making blockchain work in their supply chain.” More capable and advanced technologies and resources may not be available yet to make blockchain technology useful and efficient in the market.