tl;dr
A study by researchers from the University of Surrey and Cardiff University reveals that enterprise-level adoption of blockchain technology has been slow due to over-promised benefits and under-delivered business value. The study identified 880 factors and 29 themes impacting blockchain adoption, wi...
Organizations Aren’t Adopting Blockchain? Study Reveals Why Organizations Aren’t Adopting Blockchain? Study Reveals Why
Blockchain adoption has gradually increased over the years. However, at the enterprise level, this adoption has been sluggish, and according to a new report, it’s due to the technology over-promising and under-delivering.
In their paper, researchers from the University of Surrey and Cardiff University identified 880 factors and 29 themes impacting blockchain adoption, with scalability being a significant barrier.
Citing previous surveys, they found that only 2% of digital leaders worldwide have adopted blockchain on a large scale, while 8% reported small-scale adoption. Cloud computing, big data, and artificial intelligence (AI), in contrast, reported 92%, 62%, and 36% large-scale adoption globally.
“While blockchain has been touted as a revolutionary technology, our research suggests that its adoption is hampered by over-promised benefits, under-delivered business value, and the complex interdependence between adoption drivers and barriers,” commented Mahdi Tavalaei, one of the authors.
The researchers found that organizations are well aware of the benefits of blockchain adoption. However, the barriers often overshadow the benefits, resulting in low adoption at an enterprise level.
Take scalability, for instance, which ranks as the second-most impactful barrier, according to the study. Most blockchain networks can’t scale to meet enterprise needs.
“Blockchain technology holds great promise, but the narrative needs a reality check. Our research shows that the interplay between drivers and barriers of blockchain adoption across technological, organizational, and environmental dimensions highlights the complex and often conflicting dynamics organizations must navigate,” Tavalaei added.
Still, blockchain plays a more prominent role in some of the world’s biggest organizations. In recent years, tokenization has emerged as one of the vital benefits of the technology, leading to an acceleration in adoption.