There has been plenty of hype about the potential for blockchain technology to transform the financial services sector, but a new survey from Deloitte LLP indicates that many other industries are also exploring the technology’s potential.
Specifically, consumer products, manufacturing, technology, media and telecommunication sectors are planning to make substantial investments in blockchain technology in 2017, the survey reveals.
“Most financial services companies have been involved in blockchain via their labs, investments and pilots for a while now,” says Eric Piscini, principal with Deloitte Consulting LLP, in a statement. “Other industries are now starting to realize the potential for disruption, as well as the new opportunities that blockchain creates.”
Deloitte reports that executives in the consumer products and manufacturing industries are most bullish on the prospects for blockchain, with 42% planning to spend at least US$5 million in the year ahead. This is followed by executives in technology, media and telecom, at 27%, and financial services, at 23%.
The survey also found that the actual implementation of blockchain technology varies by industry, with tech, consumer products and manufacturing in the lead. In fact, 30% of survey participants in those industries say their companies are already using blockchain technology.
This compares with just 12% of financial services sector executives, although 24% of financial services executives say their companies aim to adopt some form of blockchain technology in the coming year.
Deloitte’s survey also found that executives have diverse views about the primary advantage of blockchain technology compared with conventional transactional technology. For example, 36% of executives surveyed say blockchain has the potential to improve operations, either by reducing costs or increasing speed; 37% see superior security features as the main advantage; and 24% see the potential for blockchain to enable new business models and revenue streams.
“This diversity may be a testament to the versatility of the technology,” said David Schatsky, managing director with Deloitte, in a statement. “But it is likely also a reflection of the fact that, despite the hype, the impact that blockchain will likely have on businesses in various industries is not yet fully understood.”
The main barriers to adoption, the survey found, are lack of technical standards and support from regulators. Specifically, 56% of survey participants believe that the emergence of technical standards would create a “tipping point,” leading to widespread adoption, and 48% say that federal regulations supporting the use of blockchain could also drive mass adoption.
The survey, which was conducted online between Nov. 14 and Dec. 1, sampled 308 senior executives in the U.S. at companies with US$500 million or more in annual revenue.
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