Blockchain and distributed ledger technology not living up to the hype, Gartner CIO survey shows

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Only 1% of CIOs have deployed blockchain in their organisation, according to Gartner's 2018 CIO Survey, as IT business leaders struggle to find the real business value behind the hype.

Just 8% of the more than 3,000 CIOs in 98 countries that Gartner surveyed had short-term plans to adopt the distributed ledger technology, while more than three quarters (77%) of them had no plans to use blockchain.

The survey suggests that many people who claim to be deploying blockchain are in fact just slapping a buzzword on other forms of database.

"They seem to be calling something blockchain which arguably is existing technology, and from our perspective, that's going to be more expensive," Gartner Fellow and vice president David Furlonger told CIO UK.

"It'll add to TCO [total cost of ownership] because of an integration of risk and a whole bunch of other things and they're forgoing the potential that blockchain affords in terms of tokenisation and decentralisation."

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Those CIOs who are exploring blockchain are struggling to find the necessary skills and accommodate the changes to their operating and business models that blockchain will enforce.

The level of adoption varies widely across sectors. CIOs from insurance and financial services remain at the forefront of blockchain deployment, while transportation, government, telecoms and utilities sectors are gaining interest, but many of their blockchain initiatives would be more successful if they used other technology.