Blockchain Trends For 2020 And Beyond
Earlier in the week we wrote about supply chain trends experts predict for 2020, and in this article we will touch upon what blockchain trends we are expecting during this year.
“Blockchain will have its breakout moment in 2020 as it moves beyond the hype machine to derive real value for mainstream enterprises. In fact, in Deloitte’s 2019 Global Blockchain Survey, 53% of respondents stated that blockchain technology became a critical priority for their organizations in 2019.
2020 Will Be The Year Of Blockchain Hype Fatigue
Blockchain is perhaps the most hyped technology on the planet, but is it living up to all this hype? According to Gartner, the business value added by blockchain will surge to exceed $3.1 trillion by 2030. So even though blockchain technologies will provide a significant impact across most industries, this value will be realized in a much more gradual way rather than a big splash.
A Shift To Practical Blockchain Applications
In many ways, the shift from the ideal to the practical has already begun. In 2020 and beyond, we will see this notion cement itself. Across almost every industry, blockchain is already leveraged in practical use cases, including tracking food, prescription medicine and even airline engine parts. The momentum will continue to expand as executives see how blockchain business scenarios apply to outcomes they wish to achieve.
Digital Ecosystems Drive The Enterprise Need For Blockchain
In general, blockchain-enabled ecosystems have been poorly managed, with a lack of focus, or the criteria for membership has been too narrow. This has led to insular and ineffective outcomes. Even with these challenges, the number of ecosystems is doubling in size year over year. Currently, this is dominated by financial services ecosystems. I believe there will be a shift over the next few years to where more than 80% of blockchain projects will be outside the financial realm.
Enterprise Blockchain Requires A Deliberate Approach To Business Models
The long-term success and durability of a blockchain-enabled ecosystem requires an end-to-end view of the value stream and future-proofing of the business model. These business models tend to have varied purposes, legal models and economics. Three common models include:
Founder-led: A single company defines, builds, owns and operates the solution.
Partnership-driven: An exclusive group of companies that shares decision-making authority as a joint venture.
Industry-driven: Governed by elected representatives who are designed to be a non-bias ecosystem focused on a specific industry that capitalizes on the capability of many companies.
The Convergence Of The Trinity Of Digitization (Blockchain + AI + IoT)Arguably, blockchain on its own can provide limited value; the real value is in the solution that is created. After all, blockchain is a data technology. Blockchain really shines when enabled by internet-of-things (IoT) connectivity and the intelligence of artificial intelligence (AI), both at the edge and the core. Interestingly enough, Gartner revealed 75% of organizations that are implementing IoT technologies have already implemented blockchain or will implement by the end of 2020.
Article written by : Mike Walker, Forbes Councils Member and published by Forbes