Organisations using blockchain smart contracts will increase overall data quality by 50% but reduce data availability by 30% by 2023, said Gartner recently.
Governance frameworks for blockchain participation, or the terms and conditions within the smart contract, can dictate the availability of the data generated from the smart contract transaction, from none to limited to unlimited, the advisory firm pointed out.
“This variable could leave participants in a worse position than if they did not participate in the blockchain smart contract process. As such, an organization’s overall data asset availability would decrease by 30% by 2023,” said Lydia Clougherty Jones, senior research director at Gartner.
Postitive impact for data & analytics ROI
The net impact however, is a positive result for data and analytics (D&A) ROI, Gartner said. The impact of blockchain smart contract adoption on analytical decision making is profound, adding that it enhances transparency, speed and granularity of decision making, the firm added.
It also improves the quality of decision making, as its continuous verification makes the data more accurate, reliable and trustworthy, Gartner said.
Smart contracts are important and D&A leaders should focus on them because they promise a near certainty of trusted exchange, Clougherty Jones noted .
Once deployed, blockchain smart contracts are immutable and irrevocable through non-modifiable code, which enforces a binding commitment to do or not do something in the future, she explained.
“Moreover, they eliminate third-party intermediaries such as bankers, escrow agents, and lawyers as well as their fees, as smart contracts, perform the intermediary functions automatically,” said Clougherty Jones.
How to deploy blockchain smart contracts
Organizations should start deploying them to automate a simple business process, such as non-sensitive data distribution or a simple contract formation for contract performance or management purposes, Gartner said.
Then organizations should engage with their affiliates and partners to pilot blockchain smart contracts to automate multiparty contracts within a well-defined ecosystem, such as banking and finance, real estate, insurance, utilities, and entertainment, the advisory firm added.