Deloitte has published a new survey polling over 1,000 “blockchain-savvy” executives on where they believe the blockchain industry is headed. The executives surveyed made predictions for the future of the industry and the value of blockchain’s growing use cases in the coming technological revolution. The survey reveals a promising outlook for the future of blockchain and the cryptocurrency industry.
Details of the Deloitte Survey
The Deloitte survey sampled 1,053 senior executives from seven countries (Canada, China, France, Germany, Mexico, United Kingdom, and the United States) whose companies are currently generating over $500 million in annual revenue. All those surveyed are considered to have a broad understanding of blockchain technology and blockchain investment plans.
“When looking at the insights developed from our 2016 survey, the data suggested that blockchain adoption—and its move into production—would have happened at a faster pace than we have seen so far in 2018,” reads the report. “Still, even though blockchain is rolling out in a more moderated fashion than expected, its adoption remains promising.”
The report continues:
“The view further down the road is an inspiring one. We see blockchain enabling a completely new level of information exchange both within and across industries. As connections are made between blockchain and other emerging technologies, particularly the cloud and automation, we see the potential for blockchain to help organizations create and realize new value for businesses beyond anything we can imagine with existing technologies.”
Suggested Reading : Learn more about blockchain in our beginner’s guide.
Blockchain proves to be a priority investment for the executives polled in the Deloitte survey. Of those surveyed, 95 percent of respondents stated that their company would be investing at least $500,000 dollars into blockchain in the coming year, while 39 percent of respondents reported their organizations would be investing at least $5 million. Sixteen percent of those surveyed planned to invest 10$ million or more.
Attitudes on Blockchain Adoption
The Deloitte survey states that, “Overall, respondents are extremely bullish on blockchain’s potential, namely its ability to broadly scale and reach mainstream adoption. A majority also agreed that blockchain technology will disrupt their industry.”
84 percent of those polled agreed that blockchain technology is broadly scalable and will eventually achieve mainstream adoption. 74 percent agreed that there is a compelling business case for blockchain, and 68 percent of those surveyed agreed that businesses failing to adopt blockchain technology will lose a competitive edge. More than half of the executives believed blockchain will cause serious disruptions in the financial industry. Only 39 percent of those surveyed thought that blockchain was currently being overhyped.
Perceived Disruption of Blockchain Technology by Industry
Interestingly, a significant majority of the executives surveyed (73 percent) felt that the automotive industry would likely encounter disruptions from blockchain technology. Many perceived the oil and gas and life sciences industries (including biotech, medical devices and pharma) to also encounter disruption. The public sector was considered the least likely industry to be disrupted by blockchain, with only 46 percent of those surveyed predicting a significant future disruption.
Most Significant Advantages of Blockchain over Existing Systems
Out of those surveyed, 32 percent believed the most significant advantage of blockchain is its speed compared to existing systems. 28 percent believed blockchain would most importantly serve to create new business models and revenue sources, while a combined 37 percent believed blockchain’s greatest value would be attributed to increased security and lower costs. 84 percent of those surveyed agreed that blockchain-based solutions were more valuable than conventional IT systems.
Blockchain’s Relevance Within Organizations
43 percent of those surveyed considered blockchain to have critical importance within their respective organizations (ranked in top 5 company’s strategic priorities). A combined 50 percent of the executives reported blockchain having either relative or general importance, and only 8 percent of executives were either unsure or considered blockchain not to be relevant.
Barriers to Greater Investment in Blockchain Technology
39 percent of those surveyed agreed that regulatory issues posed a barrier to greater organizational adoption of blockchain technology. Over a third also agreed that legacy systems, potential security threats and uncertain return on investments (ROI) posed additional difficulties for greater adoption in the space.
Blockchain Decisions by Department
78 percent of executives surveyed stated that the majority of their company’s blockchain decisions were being directed by their IT departments or by their business as a whole. 15 percent reported innovation/R&D departments and 6 percent said finance departments were heading blockchain decisions.
52 percent of those surveyed reported their companies were focusing on developing permissioned blockchains, while 48 percent also claimed to be focusing on private internal company blockchains. 44 percent of executives were reported to be interested in public blockchains like Bitcoin and Ethereum.
Blockchain Use Cases
53 percent of those surveyed claimed to be working on supply chain focused blockchains. A significant number of the executives also reported interest in blockchains for the internet of things, digital identity, digital records and digital currency (51, 50, 44, and 40 percent respectively).
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