There are lot of challenges in blockchain implementation - Regulatory frameworks and standards,

Adoption challenges, Ease of integration with enterprise applications, Initial setup cost, Bandwidth
allocation, security and privacy, Implementation cost. The major issue faced is adoption blockchain Commented [AM1]: https://www2.deloitte.com/content
at an enterprise level is still relatively immature. IDC believes the most promising implications of /dam/Deloitte/uk/Documents/Innovation/deloitte-uk-
blockchain-key-challenges.pdf
blockchain technology are in the not-yet-realized enterprise blockchain space. Most enterprises are
still in the education phase regarding blockchains. Gartner’s 2018 CIO Agenda Survey shows that
blockchain adoption remains sluggish across the globe, especially in North America.

Unprecedented interest for blockchain across every industry - Blockchain impact spans all
industries and public services, regardless of type. As an example, blockchain is not a technology that
is only applicable in financial services – Gartner

Confusion amongst leaders - Technology innovation leaders, and CIOs, face a confusing,
complicated and rapidly evolving blockchain technology landscape. In 2019, IT leaders, including
CIOs, trying to embrace blockchain face a confusing array of technology questions. They seek to
understand: how it works, why they need it, what value it offers over legacy database or other
technologies, what use cases are most appropriate and how to work with their peers in a
consortium. They also need to understand how to integrate blockchain into their existing systems
and processes according to Gartner.

The percentage of CIOs worldwide with blockchain projects in production tripled from 1% of
respondents in the 2018 survey to 3.3% in the 2019 survey. However, the percentage of CIOs with
no interest at all rose from 34% to more than 40% during the same period. CIOs with plans to deploy
blockchain projects remained roughly the same; approximately 55% say they will deploy blockchain
during the next three years according to gartner

CIOs tell Gartner that blockchain is a technology they want to deploy. Sixty percent (according the
2019 Gartner CIO survey) expect some kind of blockchain deployment within the next years. But
many of them do not see blockchain as a game-changer technology.

CIOs across all industries and government perceive blockchain as a technology relevant to them and
have invested in experimentation. But, they struggle to translate these early efforts into viable and
sustainable projects Aspects of blockchain that promise the most impact also demand the most
change, at enterprise and industry levels. This issue, combined with the fact that digital capabilities
remain immature in many enterprises, causes business leaders to pause. Established business
models also struggle to accommodate radical redesign, especially when profitable. – Gartner

Consortia formation – According to IDC "Building consortiums and recruiting the leading enterprises
in various segments is becoming a race in blockchain now, and as a result we are witnessing a
growing number of large pilot projects."

Organizations are joining consortium because it helps in lobbying regulations that can effectively
drive the development of blockchain technologies

According to Gartner multicompany consortia projects are increasing that use blockchain as a key
technology

Example - We.trade blockchain consortium joint venture between nine European banks. The
platform was built with cooperation from IBM on top of the Hyperledger Fabric 1.0 distributed
ledger platform.
Example – technology focused consortium - Hyperledger consortium, Ethereum project, IoT
blockchain consortium

Increased spending on blockchain – According to IDC Total spending in Europe will reach $3.6 billion
in 2022, with a 2018–2022 five-year compound annual growth rate (CAGR) of 73.2%. in blockchain
and the major reason of this is increased used of blockchain in production,

Integration of blockchain and IoT - Technologies such as IoT will be the cornerstone upon which
these blocks would be built upon according to IDC .

Top performers are taking a more expansive view and seeking ways to explore blockchain in
combination with other technologies such as IoT and AI. These early entrants are also conscious of
how and how much the implementation of smart contracts, tokenization and decentralized self-
sovereign identity can shake up existing commercial and technology structures - Gartner

Regulatory compliance – According to Gartner Regulation and accounting/taxation guidance is not

cohesive and will have significant implications for operational risk. The convergence of core main
ledger deployment styles — distributed private or public ledgers — are still developing somewhat
independently and will take several years to evolve into a more unified protocol.

Risks from blockchain Commented [AM2]: https://www2.deloitte.com/us/en/p

ages/risk/articles/blockchain-security-risks.html3
 Standard risks: Blockchain technologies expose institutions to risks that are
similar to those associated with current business processes but introduce
nuances for which entities need to account.
 Value transfer risks: Blockchain enables peer-to-peer transfer of value
without the need for a central intermediary. The value transferred could be
assets, identity, or information. This new business model exposes the
interacting parties to new risks that were previously managed by central
intermediaries.
 Smart contract risks: Smart contracts can potentially encode complex
business, financial, and legal arrangements on the blockchain, and could
result in the risk associated with the one-to-one mapping of these
arrangements from the physical to the digital framework.

Interoperability  The ability to share information across Commented [AM3]: https://cointelegraph.com/explaine

different blockchain networks, without d/blockchain-interoperability-explained
restrictions.
 Currently, one blockchain has no
knowledge of information that might
exist in a different blockchain. For
instance, the Bitcoin (BTC) blockchain
exists fully independently of
the Ethereum (ETH) blockchain — in
the sense that it has no knowledge of
any information recorded there — and
vice versa.
 Blockchain-based projects are isolated
from each other, despite existing within
 the same industry and working with the
same technology.
 No corporation would want to process
its payments with a blockchain, no
matter how scalable, if the overall
infrastructure is not interoperable and
secure.
 Example - Cards issued by global card
schemes (i.e., Visa, MasterCard,
American Express, etc.) are
interoperable across merchants and
ATMs worldwide.
 Hospitals can’t implement blockchain
because of its interoperability. This also
applies to other industries like real
estate, auditing, logistics and so on.
Mass adoption is not possible if there is
no blockchain interoperability.
 The report said that, on coding site
GitHub, there was more than 6,500
active blockchain projects using a range
of platforms with different coding
languages, protocols, consensus
mechanisms and privacy measures. –
therefore no interoperability Commented [AM4]: https://www.cnbc.com/2018/10/01
 To combat interoperability issues, there /five-crucial-challenges-for-blockchain-to-overcome-
are several standardization efforts deloitte.html
underway.One possibility is to use Commented [AM5]: https://www.itransition.com/blog/bl
existing standards in new blockchain ockchain-interoperability
applications. For example, IBM and
Microsoft are adopting the data
standards developed by GS1 to enforce
interoperability in their blockchain
applications for supply chain.

Risks  Identity and security - There have been Commented [AM6]: https://www.ictworks.org/blockchai
a large number of successful attacks on n-implementation-risks/#.XcKU9ugzY2w
DLTs and there are security risks
associated with DLTs30 (e.g. blockchain
attacks, phishing, malware,
cryptojacking, endpoint miners,
implementation vulnerabilities, wallet
theft, technology attacks, legacy
attacks which have been modernized,
dictionary attacks, quantum
computing-based attacks).
 for example, when a hacker in 2016 Commented [AM7]: https://www.fm-
stole $55 million worth of magazine.com/issues/2018/aug/blockchain-risks-and-
cryptocurrency from a smart contract rewards.html
called the DAO, a decentralised
autonomous organisation — the legal
 liability becomes unclear as well as the
ability to mitigate the loss. An exploit
like this would have a major impact on
worldwide financial markets.

- chart
- analyst quotes