Gartner study: Old structures stand in the way of blockchain adaptation

The blockchain made it up and down all the news channels. But very few industries and companies rely on the technology. A new study by the market research institute Gartner shows how few there are actually.

A classic line of argument at various conferences is the focus on the Bitcoin revolution

Often in such lectures Bitcoin revolution is seen as a necessary first attempt, but real innovation can only be found in the Bitcoin revolution (or distributed ledger) technology for companies. While Bitcoin and other crypto currencies are used worldwide, the question is how far the development of use cases for the blockchain has progressed in companies.

The analysts surveyed over 3,100 CIOs (Chief Information Officers) of large companies in almost 100 countries. Only around one percent of the CIOs surveyed stated that they already use blockchain technology in their companies. After all, around 22 percent plan to use the technology in the short or long term. Although the largest portion (43 percent) is roughly familiar with the advantages, they have not yet planned to use the blockchain in their own company. A surprisingly large proportion of 34 percent of the CIOs surveyed said they were “not interested” in the topic. Overall, around 77 percent of the companies themselves see no need in the longer term.

Only in the financial, telecommunications and insurance sectors do decision-makers see the benefits of the blockchain much more positively. They are actively driving this development forward. The blockchain supports these companies in streamlining outdated business models and making them more efficient. Other companies are still very sceptical about the recent digital change. The decentralized idea behind the blockchain is a hitherto unfamiliar and drastic change for classic companies.

Companies cannot simply remain stuck in their old structures. “Blockchain technology requires a deep understanding of security aspects, legislation, exchange values, decentralized management, procedural and commercial architecture,” explains David Furlonger. He notes that today’s silo structures are no longer compatible with tomorrow’s technology.

Some industries are slowly realizing the potential of the Bitcoin revolution

Other industries such as logistics or supply chain management are slowly recognizing the potential of the Bitcoin revolution: Some time ago, SAP developed such use cases. Logistics companies can digitize freight documents and handle the entire process digitally and paperless. In conjunction with the Internet of Things (IoT), shipments can be tracked conveniently across the globe in real time. Consumers know the benefits of their parcel services. In the business-to-business context, however, customers are still waiting for such digitized processes. These efficiency gains have a positive effect on quality and delivery times in the supply chain.

Psychology will play an important role in the coming months. Many companies do not want to take the first step and remain in a waiting position: How does competition behave and which industries rely on the blockchain? As David Furlonger explains, the restrained mode does not have to be to the detriment of the companies. If companies were to desperately try to integrate blockchain applications into their companies, this could do more harm than good.

The technology is young and experience is limited. Those who burn their hands now with a larger investment could be critical of an otherwise very sensible technology in the future. In addition, there is another problem: The popularity of the blockchain has increased explosively in recent months. The supply of developers could not keep up with the growing demand. The study proves that companies will have to recruit employees with know-how in this field in the future. At the latest when the blockchain will one day increasingly find its way into the corporate world.

Worst share price performance: EOS

The EOS share price has been in a downward trend for some time now. It has now been below the EMA100 for about a month, and since the big price drop it is now also below the EMA50 and the EMA840 in the long term. Although the price was able to hold above the downward trend existing since the beginning of 2018, it has been moving sideways since then.

The negative, but rising MACD and the RSI at 48 together with the price and trend speak a neutral to bearish language. Support is described by the weekly minimum. The resistance is defined by the EMA50.

Stability of the Bitcoin revolution

The market capital of NEO and Cardano continues to be very closely linked, so that a rise from the Cardano price or a fall from the NEO price by 0.7% NEO would result in such a Bitcoin revolution. Stellar is also only 5% behind the two crypto currencies of the Bitcoin revolution. Like last week, Monero and EOS separate 1 % of market capital. After all, DASH is only 4 % away from a place in the top 10. Unless the crypto currencies continue to synchronize, the structure of the top 10 may well change.

Winners and losers in the Bitcoin loophole

On average, all Bitcoin loophole crypto currencies have fallen by 18% as seen on: The majority of crypto currencies therefore performed worse than Bitcoin this week as well. Within the top 100, the balance is even clearer: there, prices have fallen by an average of 19%. Of course, there were still some crypto currencies within the top 100 that performed significantly better than Bitcoin or Litecoin. NEM was even able to show a price increase of 16 %. Nexus was even able to show a price increase of almost 70 %. The presence of the NEM team at various blockchain-relevant events and the resumption of business by Coinchecks certainly did the NEM course good. Although the NEM rate would still have to rise by 20% to reach the top 10, this would be quite manageable.

The losers of the week are IOS Token and GBYTE, who had to cope with price losses of well over 30%. Although ZClassic was able to temporarily double its price last week, everything suggests that this was a Dead Cat Bounce.

Bitcoin Private, the crypto currency that emerged from ZClassic, has been listed on several exchanges since yesterday and is currently trading for 64 euros. With a supply of 18.5 million euros, the total market capital would be 1.2 billion euros.

Only 3% of the crypto currencies in the top 100 have recorded positive price developments this week. Altogether, however, 75% show a worse performance than Bitcoin. Bitcoin’s market share has risen accordingly from 41% to 42%.