By 2030, blockchain is predicted to generate $3.1 trillion in new business value globally, according to Gartner. However, organizations must avoid missteps that could leave them out of capitalizing fully on blockchain.
"Beyond operational improvements and increased efficiency, fully mature blockchain complete solutions will allow organizations to re-engineer business relationships, monetize illiquid assets and redistribute data and value flows to more successfully engage with the digital world. This is the real business of blockchain," said David Furlonger, vice president of research at Gartner. "To unlock this potential, CIOs should use a framework to help their organizations better understand the timing of investments and the value proposition for blockchain usage based on different solution archetypes."
Gartner created a blockchain spectrum that includes four evolutionary phases. The phases are separated solution offerings and characters of blockchain, including some that won't be developed for years to come.
1. Blockchain-enabling technologies. These provide the foundation for future blockchain solutions. Foundational technology includes cryptography, distributed computing, peer-to-peer networking and messaging.
2. Blockchain-inspired technologies. This phase will last through early 2020, with the technologies leveraging the foundational solutions. Blockchain-inspired technologies will incorporate three of the five elements of blockchain: distribution, encryption and immutability. These solutions will re-engineer existing processes specific to individual organizations.
3. Blockchain-complete technologies. These will deliver the full value proposition of blockchain with all five elements: distribution, encryption, immutability, tokenization and decentralization. Some of these solutions will feature tokenization by using smart contracts and decentralization.
4. Enhanced blockchain technologies. Once mature, blockchain solutions will begin to incorporate the IoT, artificial intelligence and decentralized self-sovereign identity solutions. These solutions will enable a large number of smaller transactions to occur that wouldn't otherwise be possible.