Everything will be tokenized and connected by a blockchain one day. Fred Ehrsam
Co-founder of Coinbase, Fred Ehrsam provided some truthful insight into the future. Truthful eh? Yes, you read that right. His statement, although not completely true for now, does hold veracity partly. According to the PwC’s 2018 survey of 600 executives from 15 territories, 84% have started experimentation in the field of blockchain or cryptocurrencies. Companies all over the world have grown eager to research the technology to find multiple use cases to which they could provide ingenious solutions. Many of them believe blockchain to be the building blocks of a future where the internet and the entire computing network is decentralized.
Businesses and individuals are flocking towards the incorporation of blockchain because of the ton of advantages it provides over a centralized network system. Being fast and efficient, reducing costs and bypassing the central authorities are just few of its benefits. Where it promotes and supports transparency, it also helps in tracing transactions. According to the researchers and analysts at Gartner, the business value-add of blockchain will exceed $3.1 trillion by 2030. Additionally, the incorporation of blockchain in the infrastructure of organizations, all over the globe will become inevitable.
The global blockchain survey listed the following findings when they asked companies about how far along are their projects of blockchain. 14% of them have up until now taken no initiative towards integrating a decentralized system. Almost 20% of them are still conducting research in the respective field. Many of them are still in the development phase, 32% to be exact. 10% of them have completed the development phase and are now amidst testing the use cases. Only a measly 15% have completed the development of a blockchain platform and are now live. Some projects have halted due to unachieved goals in the ICOs. These projects make up for the rest of 7%.
As far as the industrial sector, which has seen massive adoption of blockchain, is concerned, the survey enlisted entertainment and media corporations to be the least inclined towards incorporation of blockchain, whereas Fintech makes up for the 46% blockchain projects. Industrial products and manufacturing accounts for 12% of the total and so does the energy and utilities’ industry. Blockchain has provided many utilities in the healthcare industry, most importantly for maintaining records of patients on a tamper proof distributed ledger. 11% can be attributed to healthcare systems. Governments of various countries have been delving into blockchain tech in order to keep records of the citizens to maintain law and order, making up for the 8%. Lastly, 4% of the masses inclined towards blockchain have been using it in the Retail and Consumer Industry.
Upon surveying the territories which are most likely to be the leaders in blockchain development, the results were as follows. US was listed at the top for the year 2018 followed by China, Australia and Japan in this respective order. However, the projected values were presumed to be slightly different. In the coming years, China is being pegged as the leading territory followed US and Australia.
Even with the myriad of advantages that blockchain can offer to its users, its adoption has seen some setbacks. The regulatory authorities have yet to provide a legal framework to regulate the use of crypto and development of blockchain based platforms. Being a relatively newer technology means there are a lot of inexperienced users who have yet to understand the utility of the tech. Additionally, with new cases of fraudulent activities involving crypto, users have a lack of trust in blockchain platform providers. Interoperability is another issue to which a solution is required. To audit these blockchain incorporating companies also requires an entirely different set of rules.
The survey has provided an insight into how far we truthfully are from a global adoption of blockchain technology. It goes without saying that there are some challenges that come along with blockchain. The biggest one is lack of trust within the customers, not to mention the lack of understanding among masses. However, many still believe that blockchain is the future.