How far we are in adopting blockchain technology – A view from blockchain savvy executives

Multinational professional services organization Deloitte released a report in 2018 titled “Breaking Blockchain Open”. The report shares insight into what organizations’ blockchain-savvy executives think about blockchain technology.

Important note:
(1) This is just a view from 1,000+ blockchain-savvy executives.
(2) Countries from where this data was polled were – China, Germany, the U.S., UK, Canada, France, Mexico.
(3) It’s not necessary that what people say, is what they do.

Summary of survey result:

Traditional enterprises plan to put more resources in 2019 behind blockchain than they had been earlier in an effort to achieve greater efficiency and to develop new business models and revenue sources.

Of all the participants from different industries, Consumer Products/ Manufacturing, Life Sciences, and Tech/Media/Telecom companies are leading the implementation of blockchain in their environment. Momentum is shifting from a focus on learning and exploring the potential of the technology to identifying and building practical business applications.

However, Companies today face a wide variety of barriers to greatly invest in the blockchain. The reasons highlighted were – regulatory barriers, replacing or integrating with legacy systems, potential security threats, and uncertain return on investment. Therefore, Consortiums will remain highly relevant in the near future as a resource for companies to learn about blockchain, understand its use cases, and develop blockchain applications.

As there are believers, there are some who believe blockchain is “overhyped.” This opinion is high among United States companies. They are also lagging behind those in other countries for deploying blockchain technology.

Details:

• More than 65% organizations plan to invest access of 1 Million $ in blockchain technology in the next calendar year.

• More than 85% of respondents think Blockchain technology is broadly scalable and will eventually achieve mainstream adoption while 39% think it is overhyped.

• Executives believe blockchain will disrupt mostly the following sectors – Automotive, Oil & Gas, Life Sciences (including Biotech, Medical Devices, and Pharma)

• Over 32% of the respondents believe blockchain will bring greater speed compared to their existing systems & 28% believe it can bring New business models and revenue sources.

• 84% of the respondents think the blockchain-based solution is more secure than conventional IT systems.

• A significant majority of respondents consider blockchain technology to be very important to their organization, with 43% calling it one of their “top 5 strategic priorities” and 50% feel it is relevant to their organization but not a strategic priority at the moment.

• Regulatory concerns & replacing the legacy system are the leading factors which are limiting organizations to greatly invest in blockchain technology. Other top reasons include Potential security threats and Uncertain about ROI.

• A wide majority of the respondents think their organization will use Permissioned / Private blockchain model for their organization needs.

• Supply chain, IoT, digital identity & records are the leading blockchain use cases companies are interested in.

It seems they are keeping an open eye on blockchain so that they can take advantage of opportunities when they present themselves.