The blockchain frenzy that began in the late 2010s has significantly diminished, with experts suggesting that its potential can only be realized when paired with other emerging technologies like AI and quantum computing. According to Gartner’s 2024 hype cycle report, blockchain-related technologies have moved past the peak of inflated expectations and into the trough of disillusionment.
Adrian Leow, vice president at Gartner, notes that while there have been limited successes with specific use cases, such as the Vatican’s use of NFTs for digital archives, the technology hasn’t lived up to its promised heights. “This is not an overnight sensation,” Leow emphasizes. The future of blockchain, he believes, lies in its integration with other technologies to create multi-step business processes that require trust and security.
Challenges and Criticisms
One of the major issues with blockchain has been its scalability and interoperability problems across different ledgers and technologies. The lack of C-suite interest and the shift in IT spending towards AI have further hindered blockchain’s progress. Jim Fowler, CTO at Nationwide Insurance, recently criticized blockchain as a “bright and shiny object” that has “zero to no use” for their operations, suggesting that it’s being put “on the shelf” for future reevaluation.
Other experts share similar skepticism. Salome Mikadze from Movadex notes that while blockchain shows promise in niche areas like secure data sharing and certain supply chain scenarios, it hasn’t delivered practical benefits at scale. Trevor Fry, an IT consultant, adds that blockchain was marketed as a must-have innovation but hasn’t solved significant problems for many organizations.
Potential Use Cases
Despite the skepticism, some IT leaders see value in blockchain technology. Eitan Prince, CTO of Mogul Club, uses blockchain to track property ownership, highlighting its potential for “unparalleled transparency, security, and efficiency” in digitizing real-world assets. While acknowledging that scams have tarnished blockchain’s reputation, Prince believes it has legitimate uses, particularly in tracking real estate transactions behind the scenes.
