Gartner Research

Hype Cycle for Blockchain and Web3, 2023

Published: 02 August 2023

Summary

Blockchain/Web3 is still gaining traction in the enterprise sector. Interest declined around 2020, when intrigue in DeFi grew exponentially. Despite this, global spending on blockchain solutions continues as private and public sector organizations evaluate and experiment with hyped up technologies.

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What You Need to Know

Blockchain technology has evolved significantly and is being adopted by various industries. Software engineering leaders need to understand how to support potential use cases involving decentralized applications (dapps), decentralized finance and NFTs for example. However, there are still challenges to overcome, such as scalability, interoperability and regulatory compliance. With various blockchain platforms and consensus mechanisms available, it can be challenging to determine the best fit for a particular use case.

This Hype Cycle tracking blockchain and Web3 evolution can help software engineering leaders make informed decisions about the use of blockchain technology in their organizations. Software engineering

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The Hype Cycle: Understanding the pitfalls and opportunities of innovations

How does a Gartner Hype Cycle™ work?

A Gartner Hype Cycle provides an objective map that helps you understand the real risks and opportunities of innovation, so you can avoid adopting something too early, giving up too soon, adopting too late, or hanging on too long. Every Hype Cycle includes five phases:

The innovation trigger starts when an event, like a technological breakthrough or a product launch, gets people talking.

The peak of inflated expectations is when product usage increases, but there’s still more hype than proof that the innovation can deliver what you need.

The trough of disillusionment happens when the original excitement wears off and early adopters report performance issues and low ROI.

The slope of enlightenment occurs when early adopters see initial benefits and others start to understand how to adapt the innovation to their organizations.

The plateau of productivity marks the point at which more users see real-world benefits and the innovation goes mainstream.

The Hype Cycle is more than just a diagram. You also get:

Evidence-backed insight

Hype Cycles tap into deep research, surveys and conversations with technology suppliers and Gartner clients.

An analysis of objective and value

The y-axis measures expectations. The x-axis relates them to the proven value of that innovation over time.

A long-term view

It often takes between three and five years for an innovation to move through the Hype Cycle, but some fall off along the way.

Gartner Hype Cycle is just one of our many offerings.

We provide actionable, objective insight to help organizations make smarter, faster technology decisions to stay ahead of disruption and accelerate growth.

Pick the right provider with confidence

We work with you to select the best-fit provider to avoid the costly repercussions of a poor decision.

Align deal structures and optimize spend

We benchmark pricing against the market so you avoid unnecessary charges.

Reduce complexity and risk

We analyze contract terms and conditions to protect you against future price increases and unanticipated costs.

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