Most global companies are slow to adopt blockchain technology: PwC survey

Peter Terlato

Posted: 29 August 2018 6:37 am News

Some companies have paused blockchain activities and enterprises, while others haven't even started.

Although the majority of business executives suggest that their companies are currently exploring some type of blockchain initiative, only a small proportion have active enterprises, while some have even paused activities.

New research released by multinational professional services firm PricewaterhouseCoopers (PwC) reveals that 504 out of 600 (84%) executives across 15 countries and territories have blockchain initiatives in their business.

Almost one third of executives said that their company's blockchain projects are at the development stage (32.65%), while one fifth are still researching opportunities (20.41%). One in ten divulged that they were testing pilots (10.20%) and a similar proportion said that their technology is live and working (15.31%).

However, a small number of executives (7.14%) explained that they have paused blockchain initiatives and about twice as many companies have not invested in any distributed ledger technology (DLT) at all (14.29%).

This means that only a fraction (25%) of the overall blockchain-for-business potential is actively in use.

Those executives with little to no interest in blockchain technology cited costs (31%), uncertainty over where to begin (24%) and governance issues (14%) as the main deterrents.

Blockchain technology and other digitalized ecosystems have been identified as one of a handful of emerging technology trends that "blurs the line between man and machine", according to Gartner.

PwC's survey reports that the United States (29%), China (18%) and Australia (7%) are seen as leaders in the blockchain space. Many respondents (30%) expect China to outpace the US within the next three to five years.

Almost half of all executives surveyed named blockchain as the leading financial services development (46%). In spite of this, executives are less convinced (41%) this will be the case in the next three to five years.

Respondents identified regulatory uncertainty (48%) and trust (45%) as the leading barriers to adoption. Concern about regulatory uncertainty was highest in Germany (38%), Australia (37%) and the United Kingdom (32%). Concern about trust was most prominent in Singapore (37%), UAE (34%) and Hong Kong (35%).

Building a functional decentralised network and cryptocurrency is kind of like trying to build a house of cards by throwing a full deck into the air and hoping they all land perfectly balanced. It's damn tough to accomplish.

A Gartner CIO survey found low interest and even lower adoption of blockchain technology in most businesses.

A separate survey of industry leaders suggests that blockchain technology is at a turning point, shifting from exploratory exercises to practical application among global businesses. However, there are issues to iron out.

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