Introduction
The world is abuzz with the potential of blockchain technology to revolutionize the way we conduct transactions, secure data, and create new business models. However, despite its promise, blockchain technology adoption has been slower than expected. According to a survey by Deloitte, only 34% of organizations have adopted blockchain technology, and 43% of those who have adopted it have faced significant challenges (1). In this blog post, we will explore the lessons that can be learned from the failures of blockchain technology adoption and how these lessons can be used to improve future adoption.
Lack of Understanding of Blockchain Technology
One of the main reasons for the slow adoption of blockchain technology is a lack of understanding of how it works and its potential applications. Many organizations have been intimidated by the complexity of blockchain technology and have been hesitant to adopt it. According to a survey by PwC, 55% of executives believe that blockchain technology is a technology in search of a problem, and 47% believe that it is overhyped (2). However, this lack of understanding can be overcome by providing education and training on blockchain technology.
For example, the Hyperledger Fabric project provides a comprehensive set of documentation and tutorials on how to use blockchain technology to build enterprise-grade applications (3). Similarly, the Blockchain Council provides a range of certification programs for developers, architects, and business professionals (4). By providing education and training, organizations can overcome the lack of understanding of blockchain technology and improve adoption.
Insufficient Infrastructure
Another reason for the slow adoption of blockchain technology is the lack of infrastructure to support it. Many organizations have found it difficult to integrate blockchain technology with their existing systems and infrastructure. According to a survey by Gartner, 60% of organizations have found it challenging to integrate blockchain technology with their existing systems, and 45% have found it challenging to develop a use case for blockchain technology (5). However, this lack of infrastructure can be overcome by developing a robust and scalable infrastructure to support blockchain technology.
For example, the IBM Blockchain Platform provides a cloud-based platform for developing and deploying blockchain applications (6). Similarly, the R3 Corda platform provides a comprehensive set of tools and APIs for building blockchain-based applications (7). By developing a robust and scalable infrastructure, organizations can overcome the barriers to adoption and improve the success rate of blockchain technology.
Inadequate Governance and Regulation
The lack of governance and regulation has also been a major barrier to the adoption of blockchain technology. Many organizations have been hesitant to adopt blockchain technology due to concerns about its regulatory status and the lack of clear guidelines on how to use it. According to a survey by KPMG, 71% of executives believe that regulatory uncertainty is a major barrier to the adoption of blockchain technology (8). However, this lack of governance and regulation can be overcome by developing clear and comprehensive guidelines on the use of blockchain technology.
For example, the European Union’s Blockchain Observatory and Forum provides a comprehensive set of guidelines and recommendations on the use of blockchain technology (9). Similarly, the US Securities and Exchange Commission (SEC) has developed a comprehensive framework for the regulation of blockchain-based securities (10). By developing clear and comprehensive guidelines, governments and regulatory bodies can overcome the barriers to adoption and improve the success rate of blockchain technology.
Poor Use Case Development
Finally, the lack of a clear and compelling use case has also been a major barrier to the adoption of blockchain technology. Many organizations have struggled to develop a business case for the use of blockchain technology, and have been unable to articulate the benefits and value of using blockchain technology. According to a survey by Accenture, 70% of organizations have found it challenging to develop a business case for blockchain technology, and 60% have found it challenging to articulate the benefits and value of using blockchain technology (11). However, this lack of use case development can be overcome by developing a clear and compelling business case for the use of blockchain technology.
For example, the Maersk-IBM blockchain-based supply chain platform provides a comprehensive set of use cases and business benefits for the use of blockchain technology (12). Similarly, the Walmart blockchain-based food safety platform provides a clear and compelling business case for the use of blockchain technology (13). By developing a clear and compelling business case, organizations can overcome the barriers to adoption and improve the success rate of blockchain technology.
Conclusion
In conclusion, the slow adoption of blockchain technology has been due to a variety of reasons, including a lack of understanding, insufficient infrastructure, inadequate governance and regulation, and poor use case development. However, by learning from the failures of blockchain technology adoption, organizations can improve their chances of success. We would love to hear from you about your experiences with blockchain technology adoption. Have you faced any challenges or successes in adopting blockchain technology? Please leave a comment below and share your experiences.
References:
(1) Deloitte, 2020. “2020 Global Blockchain Survey”.
(2) PwC, 2020. “2020 Global Blockchain Survey”.
(3) Hyperledger Fabric. “Documentation”.
(4) Blockchain Council. “Certification Programs”.
(5) Gartner, 2020. “Gartner Blockchain Report”.
(6) IBM Blockchain Platform. “About”.
(7) R3 Corda. “About”.
(8) KPMG, 2020. “2020 Blockchain Survey”.
(9) European Union’s Blockchain Observatory and Forum. “Guidelines”.
(10) US Securities and Exchange Commission (SEC). “Framework for Investment Contract Analysis of Digital Assets”.
(11) Accenture, 2020. “2020 Blockchain Report”.
(12) Maersk-IBM. “Blockchain-based Supply Chain Platform”.
(13) Walmart. “Blockchain-based Food Safety Platform”.