{"id":923,"date":"2018-08-05T20:54:55","date_gmt":"2018-08-05T20:54:55","guid":{"rendered":"https:\/\/blockchain-society.science\/?p=923"},"modified":"2018-08-05T20:54:55","modified_gmt":"2018-08-05T20:54:55","slug":"blockchain-once-seen-as-a-corporate-cure-all-suffers-slowdown-bloomberg","status":"publish","type":"post","link":"https:\/\/blockchain-society.science\/?p=923","title":{"rendered":"Blockchain, Once Seen as a Corporate Cure-All, Suffers Slowdown – Bloomberg"},"content":{"rendered":"

<\/a>Corporate America\u2019s love affair with all things blockchain may be cooling.A number of software projects based on the distributed ledger technology will be wound down this year, according toForrester 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\u2019s operations, the firm estimates.Even Nasdaq Inc., a high-profile champion of blockchain and cryptocurrencies, hasn\u2019t 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\u2019t using the technology in any widely deployed projects yet.\u201cThe expectation was we\u2019d quickly find use cases,\u201d Magnus Haglind, Nasdaq\u2019s senior vice president and head of product management for market technology, said in an interview. \u201cBut introducing new technologies requires broad collaboration with industry participants, and it all takes time.\u201dBetting on BlockchainSo far, IBM and Microsoft have grabbed more than half of blockchain spendingSource: WinterGreen Research Inc. report from earlier this yearNote: Figures shown are percent of total dollar salesBlockchain is designed to provide a tamper-proof digital ledger — a groundbreaking means of tracking products, payments and customers. But the much-ballyhooed technology has proven difficult to adopt in real-life situations. As companies try to ramp up projects across their businesses, they\u2019re hitting problems with performance, oversight and operations.Hype Versus Reality\u201cThe disconnect between the hype and the reality is significant — I\u2019ve never seen anything like it,\u201d said Rajesh Kandaswamy, an analyst at Gartner Inc. \u201cIn terms of actual production use, it\u2019s very rare.\u201dThat could be bad news for makers of blockchain software and services, which include International Business Machines Corp. and Microsoft Corp. They\u2019re aiming to make billions on cloud services that help run supply chains, send and receive payments, and interact with customers. Now their projections — and investors\u2019 expectations — may need to be tempered.\u201cBlockchain is supposed to be an important future revenue stream for IBM, Microsoft and others in equipment sales, cloud services and consulting,\u201d said Roger Kay, president of Endpoint Technologies Associates. \u201cIf it materializes more slowly, analysts will have to make downward revisions.\u201dIBM, which has more than 1,500 employees working on blockchain, said it\u2019s still seeing strong demand. But growing competition could affect how much it can charge clients, according to Jerry Cuomo, vice president of blockchain technologies at IBM.Microsoft also remains upbeat. \u201cWe see tremendous momentum and progress in the enterprise blockchain marketplace,\u201d the company said in a statement. \u201cWe remain committed to developing cutting-edge technology and working side-by-side with industry leaders to ensure business of all types realize this value.\u201dSo 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.For a large swath of companies, blockchain remains an exotic fruit. 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.\u2018No Delay\u2019Many companies that previously announced blockchain rollouts have changed plans. ASX Ltd., which operates Australia\u2019s primary national stock exchange, now expects to have a blockchain-based clearing and settlement system at the end of 2020 or the beginning of 2021. Two years ago, the company was aiming for a commercial blockchain platform within 18 months. An exchange spokesman said \u201cthere\u2019s been no delay,\u201d as the company hadn\u2019t announced the exact launch date until recently.Another early advocate, Australian mining giant BHP Billiton Ltd., said in 2016 that it would deploy blockchain to track rock and fluid samples in early 2017. But it currently doesn\u2019t \u201chave a blockchain project\/experiment in progress,\u201d according to spokeswoman Judy Dane.But there could be more of an uptick next year, according to blockchain-backing organizations.\u201cIt\u2019s not on a steep ramp-up curve at all,\u201d said Ron Resnick, executive director of Enterprise Ethereum Alliance, comprised of about 600 members such as Cisco Systems Inc., Intel Corp. and JPMorgan Chase & Co. \u201cI don\u2019t expect that to happen this year. They are still testing the waters.\u201dSeeking StandardsOne reason behind the delays: Most blockchain vendors don\u2019t offer compatible software. Companies are worried about being beholden to one vendor — an issue the EEA group hopes to resolve by setting standards.The organization will launch its certification te<\/p><\/blockquote>\n

Source: Blockchain, Once Seen as a Corporate Cure-All, Suffers Slowdown – Bloomberg<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Corporate America\u2019s love affair with all things blockchain may be cooling.A number of software projects based on the distributed ledger technology will be wound down this year, according toForrester 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 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[39,5,45],"tags":[],"_links":{"self":[{"href":"https:\/\/blockchain-society.science\/index.php?rest_route=\/wp\/v2\/posts\/923"}],"collection":[{"href":"https:\/\/blockchain-society.science\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blockchain-society.science\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blockchain-society.science\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blockchain-society.science\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=923"}],"version-history":[{"count":1,"href":"https:\/\/blockchain-society.science\/index.php?rest_route=\/wp\/v2\/posts\/923\/revisions"}],"predecessor-version":[{"id":925,"href":"https:\/\/blockchain-society.science\/index.php?rest_route=\/wp\/v2\/posts\/923\/revisions\/925"}],"wp:attachment":[{"href":"https:\/\/blockchain-society.science\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blockchain-society.science\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blockchain-society.science\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}