Innovation

Don't believe the hype: Only 1% of CIOs have adopted blockchain tech

Some 77% of CIOs said their organization has 'no interest' in blockchain technology, or no plans to investigate it, according to Gartner.

Building a slide deck, pitch, or presentation? Here are the big takeaways:
  • 1% of CIOs said they have some kind of blockchain adoption within their organization. — Gartner, 2018
  • 77% of CIOs surveyed said their organization has no interest in blockchain technology, and no plans to investigate or develop it. — Gartner, 2018

Blockchain has become a major tech buzzword of 2018—but virtually no companies are actually adopting the ledger technology, according to a Thursday report from Gartner. Only 1% of the more than 3,100 CIOs surveyed said they had already adopted some kind of blockchain within their organization. Just 8% said they were in short-term planning or active experimentation with blockchain, the report found.

On the flip side, 77% of CIOs said their organization has either "no interest" in the technology, or "no action planned" in terms of investigating or developing it, Gartner found.

"This year's Gartner CIO Survey provides factual evidence about the massively hyped state of blockchain adoption and deployment," David Furlonger, vice president and Gartner Fellow, said in a press release. "It is critical to understand what blockchain is and what it is capable of today, compared to how it will transform companies, industries and society tomorrow."

SEE: IT leader's guide to the blockchain (Tech Pro Research)

Further, rushing into blockchain deployments could lead to a number of problems for enterprises, including wasted investments, Furlonger said in the release.

Of the 293 CIOs surveyed who said their organizations are in short-term planning or have already invested in blockchain initiatives, 18% said that blockchain skills are the most difficult to find.

"The challenge for CIOs is not just finding and retaining qualified engineers, but finding enough to accommodate growth in resources as blockchain developments grow," Furlonger said in the release. "Qualified engineers may be cautious due to the historically libertarian and maverick nature of the blockchain developer community."

Another 14% of CIOs implementing blockchain said that the technology requires great change in the culture of the IT department, as well as changes to the operating and business model of the organization.

"Blockchain technology requires understanding of, at a fundamental level, aspects of security, law, value exchange, decentralized governance, process and commercial architectures," Furlonger said in the release. "It therefore implies that traditional lines of business and organization silos can no longer operate under their historical structures."

In terms of industries, CIOs from telecom, insurance, and financial services sectors reported being the most actively involved in blockchain planning and experimentation, the survey found.

"While many industries indicate an initial interest in blockchain initiatives, it remains to be seen whether they will accept decentralized, distributed, tokenized networks, or stall as they try to introduce blockchain into legacy value streams and systems," Furlonger said in the release.

Blockchain may still have potential, but for now, it has yet to be fully realized. CIOs that are not yet exploring the technology should understand that they are in good company at this point.

Also see

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Image: iStockphoto/ismagilov

About Alison DeNisco Rayome

Alison DeNisco Rayome is a Staff Writer for TechRepublic. She covers CXO, cybersecurity, and the convergence of tech and the workplace.

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