Global accounting firm Deloitte released its annual blockchain poll, entitled "Breaking Blockchain Open" recently in which the company provides insights on the opinions and actions of established organizations and their managers for regarding the blockchain technology.
Deloitte interviewed 1,053 senior executives from organizations with an average of over 500 million annual revenue. The managers were based in Canada, China, France, Germany, Mexico, the United Kingdom and the United States. Most respondents came from the United States (284). The Chinese respondents were 205, followed by the United Kingdom at 150 and Germany at 132.
Respondents identified a medium to above average understanding of blockchain technology. Furthermore, due to their higher status, respondents were able to provide in-depth insights into the views of their organization on blockchain technology. They were also able to comment on the company's future plans as they were aware of this type of information.
Deloitte conducted the online survey between March 26 and April 5, 2018. Respondents represented organizations from 10 different sectors. While most came from the financial sector, a significant portion worked in the technology, media and telecommunications sectors. Consumer products and production were also well represented.
Pros and Cons
For most respondents, the strength of blockchain technology over existing legacy structures in their organization was speed. Thanks to the intrinsic design of blockchain, they allow the sharing of information in real time. Executives believe this factor would be able to help their companies maximize productivity and increase profits. Furthermore, they thought that blockchain technology would help reduce inefficiencies and costs wherever possible.
Another important advantage was the increase in security. 84% of executives believe that blockchain technology is secure. In fact, respondents said that blockchain is safer than traditional registries or databases. Despite the perceived advantages that organizations would have obtained if they had to include blockchain technology in their organizational structure, respondents indicated a number of problems that affected the pace of adoption.
Interestingly, most of these problems have to do with the technology itself. Instead, they focused on the problems affecting the cryptocurrency industry as a whole. Respondents said that the fluctuating nature of the cryptocurrency market has led to a negative view of blockchain technology at the meeting room level. Due to a lack of understanding, meeting room managers confused the blockchain technology with cryptocurrencies and were therefore unwilling to get on board.
In addition, an uncertain regulatory framework meant that top executives were less likely to consider blockchain technology. Moreover, due to the fact that the blockchain sector is fairly new and yet is growing at a rapid pace, the "expert" labor of blockchain is not available and this creates a significant barrier to entry for those who make want to incorporate blockchain into their company.
Finally, respondents revealed that organizations were slow to adopt blockchain technology because it would require a complete overhaul of their business model and organizational structure. "Because blockchain, if properly implemented, should radically change the way a company operates, affects the entire organization, creating new tax and IT implications along with a variety of governance and regulatory issues that must be addressed, "says the report.
These broad implications lead to a significant level of apprehension which, in turn, influences the pace of adoption. "Blockchain represents a fundamental change for their business, and in itself, this helps to explain that while a majority (74%) of our respondents report that their organizations see an" irresistible business case "for 39; use of blockchain technology, only 34% say their company has initiated some sort of blockchain implementation, "said Deloitte.
The Clamor of Tokens Influencing the Adoption of Blockchain
Crypto's ability to capture headlines with stories of imminent large-scale perturbations, with little evidence of the real world, is also counterproductive as 39% of the global champion said he believed the blockchain was "overhyped". This anti-clamor sentiment was more evident in the United States, where 44% of respondents believe that the blockchain technology is overwritten.
Curiously, the number of executives with this conviction has grown. In 2016, the percentage was 34. Attempting to explain this metric, Deloitte states: "This perception can be driven by the strong increase in token values over the last 18 months, and survey members have merged with the blockchain with the public blockchain incentives, ie tokens. "
For most organizations, their blockchain activities are handled by their IT functions (39%) or their innovation / R & D functions (16 %). This indicates that blockchain technology is not seen as a business tool, is seen as a technological tool, but it is interesting to note that the majority of Chinese companies took the opposite position with their blockchain-related businesses managed as a & # 39; whole business decision. 19659009] 41% of respondents revealed that their organizations were working to bring the blockchain into their organizational structure within the next year. Global respondents said they did not find enough reasons to justify the significant resources that would be used to implement blockchain technology. Again, this number was higher in the United States, where 30% of respondents believed the same.
It is interesting to note that 78% of respondents believe they lose the competitive edge if they do not implement blockchain technology. However, for those already working on the implementation of blockchain technology, they revealed the uncertainty that they would see a return on investment. One third of respondents expressed this belief
Projects for the Future
Overall, the survey shows that companies think that blockchain is important or very important. Nearly half of the respondents revealed that blockchain technology was a priority for their organization. 43% of organizations characterized blockchain technology as one of the top five priorities. In addition, the survey found that 39% of the organizations interviewed expect to invest five million dollars or more in blockchain technology in the next year. Another 16% planned to spend more than ten million dollars.
Despite this apparent enthusiasm, security concerns about decentralized public registers were in the forefront and for most organizations, attention was reserved for individuals, consortia or blockchains consortia. Open and decentralized blockchains as they exist in cryptocurrencies were not a popular choice.