The integration of blockchain technology is expected to blow up in the next two to three years, researchers from Gartner have revealed. The researchers stated that while the cryptocurrency hype may be finally settling, blockchain is at its peak. Gartner expects all major ERP and CRM software vendors to offer blockchain capabilities as an add-on feature in the next two years.
Speaking during the Gartner IT Symposium/Xpo in Cape Town, South Africa, the researchers revealed that the lack of interoperability within the existing blockchain standards is the biggest inhibitor to widespread adoption.
Dale Kutnick, a senior vice president of research at the Connecticut-based advisory firm, pointed out that without common standards, businesses will be forced to adopt multiple blockchains.
He stated, “We’re going to have to support five different blockchains? Who’s going to pay for that? It’s unlikely there’ll ever be just one standard, but ultimately [there will be] a couple [of] standards bodies who’ll adjudicate…. Ultimately, there will be one or two standards… but no more than four.”
Blockchain networks will also have to be integrated into the existing ERP, CRM and finance systems, Gartner further stated. This will allow software vendors such as SAP or Oracle to easily update their software and launch new products all while supporting blockchain applications.
However, Kutnick believes that the vendors will eventually offer blockchain as a feature, with most of them already working on pilot projects.
The finance industry continues to be the biggest benefactor of blockchain technology, the researchers noted. Several institutions have developed blockchain solutions as they seek to “replace current banking vehicles for payments like Western Union, or international money transfers like SWIFT, with blockchain-based platforms.”
However, interoperability is still a hindrance, especially in the financial services industry where common standards are extremely crucial.
Fabio Chesini, a researcher at Gartner commented, “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.”
Blockchain integration has continued to impact several industries, savings costs, increasing efficiency and introducing new business models for businesses. As CoinGeek reported, the blockchain devices market is expected to hit $1.3 billion by 2024. In the healthcare industry, blockchain integration could push the profitability up by $1.6 billion.
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