Report warns that companies may have underestimated the scale of the blockchain challenge
More than half of large corporations across the world are considering deploying blockchain technology, new research finds.
UK analysis firm Juniper Research’s Blockchain Enterprise Survey found that 57 per cent were either actively considering, or are in the process of, deploying blockchain.
Almost 400 company founders, executives, managers and IT responded to the study and among companies which have reached the proof of concept (PoC) stage, two-thirds expected blockchain to be integrated into their systems by the end of 2018.
However, Juniper issued a note of caution that while awareness of blockchain and its benefits had increased dramatically in the past 12-18 months, there is a danger that companies might seek to deploy blockchain without having first considered alternative options.
“In many cases, systemic change, rather than technological, might be a better and cheaper solution than blockchain, which could potentially cause significant internal and external disruption,” said Dr Windsor Holden, head of forecasting and consultancy at Juniper Research, and author of the report.
Indeed, the research found that companies may have underestimated the scale of the blockchain challenge. For issues such as interoperability, the proportion of survey respondents expressing concerns progressively increased as companies proceed towards full deployment, while concerns also rose sharply regarding client refusal to embrace blockchain.
Using data from the survey, the report identified settlement, land registry and digital fiat currency as ‘best fit’ opportunities for blockchain deployment, but warned that for each of these opportunities the scale and variety of barriers were significant.
The research claimed that those companies which would benefit most from blockchain include those with:
a need for transparency and clarity in (trans)actions;
current dependence on paper-based legacy storage systems;
a high volume of transmitted information.
Juniper Research is a leading analyst house in the digital commerce and fintech sector, delivering research into payments, banking and financial services for more than a decade.
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