TOP 10 mistakes in organizing blockchain projects from Gartner Inc
Recently began to closely study the market for Bitcoin & Blockchain solutions. And I found an interesting pattern: many it-specialists are not bad, if not perfectly understood from the technical component, but at the same time they don’t want to look at the blockchain more widely - from an organizational point of view. As a rule, today they stop on the economic, less often - the political component. But there are also pleasant exceptions - like, for example, this cycle on Habrahabr .
So, below, I propose the translation of 10 errors , which were told in Gartner Inc., which is a leading research company, including IT.
As blockchain develops, CIOs can avoid unreasonable failure by taking into account common pitfalls.
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Organizations have begun experimenting with blockchain technology for a variety of use cases, including remittances, academic grading systems, land title systems, and product origin tracking. Nevertheless, according to Gartner, 90% of blockchain-based projects launched in 2015 are closed for 18-24 months .
Part of the problem is that most (blockchain) projects do not actually require this technology. In fact, these projects would probably be more successful if they did not use the blockchain.
The Blockchain technology is at the peak of high expectations in the Gartner Hype Cycle, which means that IT managers should be aware of common mistakes (misconceptions) that can lead to frustration and failure in corporate projects before they set sail.
“The current generation of technology platforms has significant limitations in many areas, which will lead to their inability to meet the requirements outlined in the long-term vision (understanding),” said Ray Valdez, vice president and employee of Gartner. Many businesses are still trying to blindly jump aboard, "... and for most of them, disappointment will be the next step."
However, a simple vision of “thin spots” will help enterprises avoid falling into the same networks.
1. Misunderstanding or ignoring the purpose of blockchain technology.
To effectively use blockchain technology, a project must add trust to an unreliable environment and use a distributed registry mechanism. Deploying a private blockchain weakens security conditions in favor of a centralized identity management system, as well as a consensus mechanism that eliminates all the assumptions (o) of insecurity. To fix this, enterprises must create a trust model of the entire system in order to determine areas of trust compared to areas of non-trust and apply blockchain only in unreliable parts .
2. Assumption that the current technology is ready for use in production.
Despite the fact that there are more than 50 different technology-based platforms on the market, only Bitcoin and Ethereum are proven to be “(on the appropriate) scale”. However, in reality, third-rate system integrators and multi-starters sell the technology as if it were mature. Information technology directors should understand that most blockchain platforms will be immature for 24 months and (will) continue to experiment and prove (given) the concept, especially in the context of open source.
3. Incomprehensible future of blockchain technology for the current generation.
The modern blockchain platform is limited in scope and lags behind meeting the requirements of a global scale distribution platform that could create a programmable economy. Although this is a long-term plan for (this) technology, CIOs should use a timeline that would correlate with the changing possibilities of blockchain functionality, as well as its legal , accounting, and regulatory maturity.
4. Do not confuse a limited entry-level protocol with a full-fledged business solution.
Although the term blockchain is often used in conjunction with innovative solutions in industries such as supply chain management or medical information systems, it should be understood that not everything that is currently available on the market is consistent with what is advertised in the news . Given the way in which the blockchain is currently being discussed, IT managers might think that the current technology is at its very basic level - this is, in fact, a complete solution for applications. But in reality (the same) the blockchain (will) has a long way of development before it is ready to show its full potential. When considering a large-scale ambitious blockchain project, CIOs should keep in mind that the blockchain share should be less than 5% of the total project development effort.
5. Consideration of the blockchain technology exclusively as a database or storage mechanism.
Some IT managers identify the “distributed registry” with a data retention mechanism or a distributed database management system. Currently, the blockchain implements the sequential recording of data only the most significant events. It offers limited data management capabilities in exchange for decentralized services and avoids trust in any one central organization. CIOs need to be aware of and weigh up trade-offs regarding data management, to be sure that the blockchain in its current form is an appropriate corporate solution.
6. The assumption of interoperability between platforms that do not yet exist.
Most blockchain technologies are still under development and do not have specific technological (or business) roadmaps. In essence, wallets do not have primary interchangeability, and the leggers (registries) themselves do not have built-in capabilities for integration. Critically, blockchain standards do not yet exist . This means that, in addition to the perceived possible interoperability at the most basic level, CIOs should be skeptical about any supplier discussions about interaction. Although there are several competing vendors, the technology has not matured to a level at which interoperability can be ensured. Do not expect that from 2016 “blocking platforms” will interact with “blocking platforms” of another supplier.
7. The assumption that today's leading platforms will still dominate or simply exist tomorrow.
CIOs shouldn't be flattered that the technology selected for the project this year will be long-term. As in the case of the mobile, social and e-commerce platforms of the past, perhaps the most efficient technology has not yet been created. CIOs should consider blockchain options from 2016 and early 2017 as temporary or short-term options and plan projects accordingly.
8. Assuming smart contract technology is the solution.
Smart contracts, computer protocols that will facilitate and enforce contracts are what allow an economy to become programmable. However, at the technical level, intellectual contracts currently do not have scalability, reliability, manageability and verifiability (at the proper level?). In addition, there is currently no legal basis - locally or globally - for their application. All this will develop in the next three to five years, but CIOs must be careful when developing smart contracts under the current proposals of blockchains and seek legal advice on their use.
9. Ignoring the problems of financing and managing a peer-to-peer distributed network.
The hypothesis is that blockchain platforms will be less expensive than the existing system of several networks, processes and data that interact with each other. However, the cost of the blockchain technology will be significant - and will increase if the existing legacy does not disappear - and who will pay for a process involving several parties, for the most part remains unanswered . In addition, as the system grows in scale, cost increases. Multiparty systems require new approaches to governance, security, and economics that raise technical, as well as political, social, and organizational issues.
10. Failure to incorporate the learning process.
Enterprises should take a practical approach to blockchain projects. The current time frame is very important for creating test and training structures. Lessons learned from experiments with platforms, new business models, processes and products will be useful for future implementations as part of a large-scale digital transformation. Even if the projects are contracted, the IT department must work closely with the third-party vendor / partner to learn skills and concepts such as smart contracts, negotiation mechanisms, identity management, management, and more — everything that can be useful for future projects. IT managers must ensure the development and transfer of knowledge across the enterprise and understand for themselves that knowledge may be the only value gained in the blockchain project from 2016 to early 2017.
PS The translation itself was not an end in itself for me, since I have relatively poor knowledge of English (thanks to my best friend for the help). But much more important are the problems identified in the study. I hope their description will help those who are at the beginning of the blockchain-path, as well as those who already follow it, but believes that "everything has already been done."
PPS Confirmation for Golos
So, below, I propose the translation of 10 errors , which were told in Gartner Inc., which is a leading research company, including IT.
As blockchain develops, CIOs can avoid unreasonable failure by taking into account common pitfalls.
')
Organizations have begun experimenting with blockchain technology for a variety of use cases, including remittances, academic grading systems, land title systems, and product origin tracking. Nevertheless, according to Gartner, 90% of blockchain-based projects launched in 2015 are closed for 18-24 months .
Part of the problem is that most (blockchain) projects do not actually require this technology. In fact, these projects would probably be more successful if they did not use the blockchain.
The Blockchain technology is at the peak of high expectations in the Gartner Hype Cycle, which means that IT managers should be aware of common mistakes (misconceptions) that can lead to frustration and failure in corporate projects before they set sail.
“The current generation of technology platforms has significant limitations in many areas, which will lead to their inability to meet the requirements outlined in the long-term vision (understanding),” said Ray Valdez, vice president and employee of Gartner. Many businesses are still trying to blindly jump aboard, "... and for most of them, disappointment will be the next step."
However, a simple vision of “thin spots” will help enterprises avoid falling into the same networks.
1. Misunderstanding or ignoring the purpose of blockchain technology.
To effectively use blockchain technology, a project must add trust to an unreliable environment and use a distributed registry mechanism. Deploying a private blockchain weakens security conditions in favor of a centralized identity management system, as well as a consensus mechanism that eliminates all the assumptions (o) of insecurity. To fix this, enterprises must create a trust model of the entire system in order to determine areas of trust compared to areas of non-trust and apply blockchain only in unreliable parts .
2. Assumption that the current technology is ready for use in production.
Despite the fact that there are more than 50 different technology-based platforms on the market, only Bitcoin and Ethereum are proven to be “(on the appropriate) scale”. However, in reality, third-rate system integrators and multi-starters sell the technology as if it were mature. Information technology directors should understand that most blockchain platforms will be immature for 24 months and (will) continue to experiment and prove (given) the concept, especially in the context of open source.
3. Incomprehensible future of blockchain technology for the current generation.
The modern blockchain platform is limited in scope and lags behind meeting the requirements of a global scale distribution platform that could create a programmable economy. Although this is a long-term plan for (this) technology, CIOs should use a timeline that would correlate with the changing possibilities of blockchain functionality, as well as its legal , accounting, and regulatory maturity.
4. Do not confuse a limited entry-level protocol with a full-fledged business solution.
Although the term blockchain is often used in conjunction with innovative solutions in industries such as supply chain management or medical information systems, it should be understood that not everything that is currently available on the market is consistent with what is advertised in the news . Given the way in which the blockchain is currently being discussed, IT managers might think that the current technology is at its very basic level - this is, in fact, a complete solution for applications. But in reality (the same) the blockchain (will) has a long way of development before it is ready to show its full potential. When considering a large-scale ambitious blockchain project, CIOs should keep in mind that the blockchain share should be less than 5% of the total project development effort.
5. Consideration of the blockchain technology exclusively as a database or storage mechanism.
Some IT managers identify the “distributed registry” with a data retention mechanism or a distributed database management system. Currently, the blockchain implements the sequential recording of data only the most significant events. It offers limited data management capabilities in exchange for decentralized services and avoids trust in any one central organization. CIOs need to be aware of and weigh up trade-offs regarding data management, to be sure that the blockchain in its current form is an appropriate corporate solution.
6. The assumption of interoperability between platforms that do not yet exist.
Most blockchain technologies are still under development and do not have specific technological (or business) roadmaps. In essence, wallets do not have primary interchangeability, and the leggers (registries) themselves do not have built-in capabilities for integration. Critically, blockchain standards do not yet exist . This means that, in addition to the perceived possible interoperability at the most basic level, CIOs should be skeptical about any supplier discussions about interaction. Although there are several competing vendors, the technology has not matured to a level at which interoperability can be ensured. Do not expect that from 2016 “blocking platforms” will interact with “blocking platforms” of another supplier.
7. The assumption that today's leading platforms will still dominate or simply exist tomorrow.
CIOs shouldn't be flattered that the technology selected for the project this year will be long-term. As in the case of the mobile, social and e-commerce platforms of the past, perhaps the most efficient technology has not yet been created. CIOs should consider blockchain options from 2016 and early 2017 as temporary or short-term options and plan projects accordingly.
8. Assuming smart contract technology is the solution.
Smart contracts, computer protocols that will facilitate and enforce contracts are what allow an economy to become programmable. However, at the technical level, intellectual contracts currently do not have scalability, reliability, manageability and verifiability (at the proper level?). In addition, there is currently no legal basis - locally or globally - for their application. All this will develop in the next three to five years, but CIOs must be careful when developing smart contracts under the current proposals of blockchains and seek legal advice on their use.
9. Ignoring the problems of financing and managing a peer-to-peer distributed network.
The hypothesis is that blockchain platforms will be less expensive than the existing system of several networks, processes and data that interact with each other. However, the cost of the blockchain technology will be significant - and will increase if the existing legacy does not disappear - and who will pay for a process involving several parties, for the most part remains unanswered . In addition, as the system grows in scale, cost increases. Multiparty systems require new approaches to governance, security, and economics that raise technical, as well as political, social, and organizational issues.
10. Failure to incorporate the learning process.
Enterprises should take a practical approach to blockchain projects. The current time frame is very important for creating test and training structures. Lessons learned from experiments with platforms, new business models, processes and products will be useful for future implementations as part of a large-scale digital transformation. Even if the projects are contracted, the IT department must work closely with the third-party vendor / partner to learn skills and concepts such as smart contracts, negotiation mechanisms, identity management, management, and more — everything that can be useful for future projects. IT managers must ensure the development and transfer of knowledge across the enterprise and understand for themselves that knowledge may be the only value gained in the blockchain project from 2016 to early 2017.
PS The translation itself was not an end in itself for me, since I have relatively poor knowledge of English (thanks to my best friend for the help). But much more important are the problems identified in the study. I hope their description will help those who are at the beginning of the blockchain-path, as well as those who already follow it, but believes that "everything has already been done."
PPS Confirmation for Golos
Source: https://habr.com/ru/post/324670/
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