Although the value of blockchain adoption for companies is still “more potential than actual,” barriers to entry in the space are being lowered and the technology is gradually getting closer to mainstream, consulting giant Deloitte pointed out in a new report.
The report dubbed Blockchain and the five vectors of progress noted that business leaders increasingly see its potential to “streamline business processes, enable new business models, and potentially reshape industries.” Still, however, many companies face “obstacles” that prevents them from fully realizing the potential that a blockchain can provide, contributing to the still-limited commercial adoption of the technology.
According to Deloitte, progress in these five areas can help overcome barriers to adoption:
- Increasing throughput and performance
- Enhancing standards and interoperability
- Reducing complexity and cost
- Regulatory support
- Multiplying consortia
The authors of the report, three Deloitte managers based in Mumbai and New York, went on to identify areas where blockchain technology has made an impact in recent years, ranging from research conducted by IBM, to the new concept of “blockchain-as-a-service” introduced by major cloud companies, and the many new bills passed by state-level legislators in the US pertaining to blockchain.
Further, the report listed potential benefits to enterprises of embracing blockchain technology, including improved efficiency, cost savings, and increased revenue by creating “new products, services, and business models.” According to the authors, companies are seeing these benefits, and are thus expected to double spending on blockchain technology this year to USD 2.1 billion.
Still, however, the report noted that only 9% of companies surveyed said they already have implemented, or is planning within a year to implement, blockchain-related projects, which still leaves plenty of room for adoption to grow over the coming years.
Even Deloitte itself has is known to be working with blockchain technology in relevant areas. For example, the global consulting firm is working with The Bank of Lithuania in setting up the LBChain sandbox to be used for trials and experimentation, as fintech companies explore potential uses of blockchain technology.
Meanwhile, a recent survey by PwC, another member of “Big Four” accounting firms, showed that three of the biggest reasons stalling blockchain adoption in businesses are cost, not knowing how to start, and lack of governance. Other reasons, such as users not seeing the benefits, audit/compliance demands and regulator discomfort are another big part of a slow rate of adoption. However, business executives “tell [PwC] that no-one wants to be left behind by Blockchain, even if at this early stage of its development, concerns on trust and regulation remain.”