CEOs On Blockchain Adoption: “Harder Than Expected”Oct 12, 2018 at 1:25
A Greenwich Associates report found that most executives did not expect joining the blockchain revolution will be difficult than it actually is.
A 2018 Blockchain Adoption Study by the management consulting firm showed that 57% of executives of blockchain firms today found that implementing distributed ledger technology (DLT) solutions are “harder than expected.”
— Greenwich Associates (@GreenwichAssoc) October 11, 2018
“Implementing enterprise technology designed to replace decades of legacy market infrastructure is no simple task, and 57% of blockchain executives told us it has been harder than expected,” read the executive summary of the report..
Richard Johnson, vice president for Greenwich Associates’ Market Structure and Technology group, cited two possibilities for this expectation: “optimism on behalf of the blockchain companies and their technology” or “the fact that a lot of the testing they have done has been in more of a demo environment.
“When you start connecting with the real world, that introduces latency and slows things down,” Johnson was quoted in a Forbes report.
The Greenwich Associates report found scalability or the network’s ability to take in large transactions at high speeds, as one of the top concerns, with 47% of the respondents citing this element as a major issue.
However, steady progress is noted with the fact that 14% of the companies have already moved to production phase, albeit at a very slow transaction pace—only 2% managed to handle 15,000 transactions per second, a relatively fast speed.
Although this may seem a meager volume, Johnson, also the author of the study, said future adoption can build on this development.
“We’re beginning to see firms figure out how to get the blockchain to run fast and do a lot of transactions per second, and I think that’s really encouraging,” Johnson added.
In a June report, the firm said four out of five executives project the technology to have ” meaningful” impact two years later.
The interview period for the report spanned from February to March 2018.
Greenwich Associates surveyed 213 global market participants engage in blockchain-focused businesses. Respondents include representatives from different organization types, some 93% of whom are either key decision-makers or actively involved in blockchain initiatives.