Global advisory firm has a forecast potential for blockchain systems of $3 trillion USD by 2030 where 10% to 20% of global economic infrastructure would be running on blockchain-based systems at that time.
PwC conducts research in emerging business fields, and with such high potential for blockchain, their business services will benefit from a deep understanding of the issues currently impeding the technology. They have released the results of a survey to 600 executives in 15 territories on their development of blockchain and views on its potential.
The Integration Process
“Creating and implementing blockchain to maximise its potential is not an IT project. It’s a transformation of business models, roles, and processes. It needs a clear business case and an ecosystem to support it; with rules, standards and flexibility to deal with regulatory change built in.” - Steve Davies, blockchain leader at PwC
84% of executives around the world report having blockchain initiatives underway via research, development, a pilot or live project. 25% have a fully live blockchain implementation or pilot project running. Only 14% have no work being done in the field.
The prevalence of the technology by industry is extremely unbalanced, where 46% of those surveyed see Financial Services as leaders in blockchain technology. Industrial products and manufacturing, energy and utilities, healthcare and government, follow with 12% to 8% supporting their view as a leader.
The big change over 2017 was separating bitcoin from blockchain. Many executives noted they are unsure of exactly what blockchain really is, and s businesses begin to understand the true benefits of blockchain technology for broad categories like supply chain management, this ratio will likely even out. As is, the 46% was a decreased figure from the same questioned in an older PwC study.
Barriers to Blockchain
“Businesses tell us that they don’t want to be left behind by blockchain, even if at this early stage of its development, concerns on trust and regulation remain.” - Steve Davies, blockchain leader at PwC
The four most prominent issues cited by those surveyed holding back integration of blockchain technology were:
Lack of trust among users
Ability to bring network together
Separate blockchains working together
The biggest developments currently happening are in streamlining processes to mediate these four issues. Governments are hard at work garnering information on the technology. Established companies are trying to educate the public and raise awareness, as well as develop their products. New startups are focusing on platforms that don’t function on their own, but rather bring together existing platforms, or are simply functioning on the protocol level, to allow to different networks to communicate together.
PwC and VeChain
The study found that China is expected to overtake US as leading blockchain developer within three to five years. Back in May PwC and VeChain formed a partnership and released a “Market Survey Report for Application of Blockchain in China.” Findings highlighted logistics, government and medical industries as areas that stand to benefit most from implementing blockchain technology.They found that the greatest challenge at hand is standardising policy. The most glaring statistic was security - 85.7% of respondents cited “tamper-resistant” as a core feature of blockchain technology.
By: BGN Editorial Staff