CHENNAI: Lack of interoperability standards will prevent full-fledged blockchain deployment across financial services industries for at least three years, global consulting firm Gartner said on Monday.
“Blockchain standards for financial services companies are currently fragmented and immature,” Fabio Chesini, senior research director at Gartner, noted. “We are three to five years until standards mature and settle.”
Gartner said that with financial services entities constantly moving assets among clients, partners and other institutions, having well-defined standards of blockchain are critical for adoption.
“Bank CIOs (chief information officers) can choose from numerous blockchains, available from either enterprise-grade approaches such as Corda, Hyperledger, and Digital Asset, or the many public blockchain standards like Bitcoin, Ethereum, Cardano, EOS, and Tezos. They are all trying to become the de facto state machine for value exchange and digital asset representation, smart contracts and decentralized applications. This indicates the fragmentation of the various standards,” Gartner noted in the study.
Chesini said bank CIOs must be mindful of this nascent and fragmented state of blockchain standards. “Given how new and fragmented the state of blockchain standards is, we expect no more than four standards to lead the market in the next three to five years,” he said.
Blockchain-powered governance is critical for financial services as it regulates activities and provides legal assurances that arbitrary decisions will not be made in the value-chain.
However, Gartner researchers believe that to achieve the true potential of blockchain, implementations must be seamlessly integrated with already installed software solutions. However, major software and SaaS providers aren’t offering blockchain solutions as add-on features to their enterprise solutions.
In the next two to three years, Gartner analysts expect all major ERP and CRM players to offer blockchain capabilities as an add-on feature for their software and SaaS products.
“Blockchain standards for financial services companies are currently fragmented and immature,” Fabio Chesini, senior research director at Gartner, noted. “We are three to five years until standards mature and settle.”
Gartner said that with financial services entities constantly moving assets among clients, partners and other institutions, having well-defined standards of blockchain are critical for adoption.
“Bank CIOs (chief information officers) can choose from numerous blockchains, available from either enterprise-grade approaches such as Corda, Hyperledger, and Digital Asset, or the many public blockchain standards like Bitcoin, Ethereum, Cardano, EOS, and Tezos. They are all trying to become the de facto state machine for value exchange and digital asset representation, smart contracts and decentralized applications. This indicates the fragmentation of the various standards,” Gartner noted in the study.
Chesini said bank CIOs must be mindful of this nascent and fragmented state of blockchain standards. “Given how new and fragmented the state of blockchain standards is, we expect no more than four standards to lead the market in the next three to five years,” he said.
Blockchain-powered governance is critical for financial services as it regulates activities and provides legal assurances that arbitrary decisions will not be made in the value-chain.
However, Gartner researchers believe that to achieve the true potential of blockchain, implementations must be seamlessly integrated with already installed software solutions. However, major software and SaaS providers aren’t offering blockchain solutions as add-on features to their enterprise solutions.
In the next two to three years, Gartner analysts expect all major ERP and CRM players to offer blockchain capabilities as an add-on feature for their software and SaaS products.
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