Four out of five executives have adopted the blockchain technology

The new research from PwC – Blockchain is here. What’s your next move? – surveyed 600 executives in 15 countries and territories, on their development of blockchain technology and views on its potential. 

A quarter of executives report a blockchain implementation pilot in progress (10%) or fully live (15%). Almost a third (32%) have projects in development and a fifth (20%) are in research mode.

As blockchain rewires business and commerce, the research provides one of the clearest signals yet of organisations’ fear of being left behind as blockchain developments accelerate globally opening up opportunities including reduced cost, greater speed and more transparency and traceability.  

However, despite the technology’s potential, respondents identified trust as one of the biggest blockers to blockchain’s adoption with 45% identifying it as a blocker to blockchain adoption.

The survey reflects the dominance of financial services developments in blockchain with 46% identifying it as the leading sector currently. and 41% in near term (3-5 years). Sectors identified by respondents with emerging potential within 3-5 years include energy and utilities (14%), healthcare (14%) and industrial manufacturing (12%).
 

 “What business executives tell us is that no-one wants to be left behind by Blockchain, even if at this early stage of its development, concerns on trust and regulation remain,” comments Steve Davies, Blockchain Leader, PwC.

The study notes that Blockchain’s biggest benefits will be developed and delivered through shared industry wide platforms. But this won’t happen without industry specific companies – including competitors – agreeing common standards and operating together.  

The study identifies four key areas for focus in the development of internal or industry wide blockchain platforms: 

1. The business case: Organisations can start small, but need to set out clearly the purpose of the initiative so other participants can identify and align around it.
2. Ecosystem: Participants should come together from different companies in an industry to work on a common set of rules to govern blockchains. Of the 15% of survey respondents who already have live applications, 88% were either leaders or active members of a blockchain consortium.
3. Trust: Involving risk professionals including legal, compliance, cybersecurity – from the start will ensure blockchain frameworks that regulators and users can trust.
4. Regulatory uncertainty: The study warns that blockchain developers should watch but not wait as regulatory requirements will evolve over the coming years. It’s vital to engage with regulators to help shape how the environment evolves.