Blockchain technology, which hit the stage back in 2009, is still in its early stages and a lot of its potential has yet to be discovered. The decentralized digital archive is currently used to transfer ownership of property, properties, patents, and even contracts. Enterprises are rapidly implementing blockchain technology to add value to their companies.
Moreover, a report by Gartner back in 2019, predicted that the business value added by blockchain will slightly increase by more than $176 billion by the year 2025. In addition, the research advisory firm’s forecast suggests that the business value will then surge upwards exceeding a massive $3.1 trillion by the year 2030.
The Gartner report indicated that, by 2025, more realistic use of the technology should have been identified, instilling confidence in the blockchain. As a result, this will spur the rapid growth and adoption of blockchain technology.
Ignore Blockchain at Your Own Peril- Report by Wipro & HFS
Moving forward, a recent report conducted by IT firm, Wipro Limited in partnership with research firm HFS, suggests that 75% of executives respondents are exploring how to utilize blockchain technology to the advantage of their firms. The report released on March 5 by Wipro, titled ‘Ignore blockchain at your peril, but don’t drive blindly’, claims that only 1% of executives find blockchain as unnecessary.
The report is a result of a global study by Wipro & HFS, conducted with 300 executives, who include over 100 c-level executives who are directly involved in their firm’s blockchain projects . Additionally, during the survey, 940 blockchain initiatives across the industry were analyzed. The study looks at the state of enterprise blockchain and how enterprises are embracing it.
According to the chief research officer at HFS, said Saurabh Gupta:
“In 2019, we witnessed pioneering blockchain initiatives succeed and proceed from proofs of concept to pilots to ‘live, in-production’ while several other efforts failed to move beyond laboratories. 2020 promises to be the most exciting year with enterprise blockchain adoption coming of age to solve real-world business problems.”
‘Blockchain 6-Pack’ Driving Enterprise Blockchain Adoption
As per the report, the ‘blockchain six-pack which includes; distributed shared data, consensus-driven trust, immutable transactions, data security, smart contracting, and permissioned and permissionless flavors; is what is driving enterprise blockchain adoption.
The report claims that more than 95% of enterprise blockchain’s key focus areas are:
- Identity
- Crypto and tokens
- Trade such as trade finance peer-to-peer trading and commodity trading
- Remittance
- Supply chain asset management and logistics
- Fraud prevention
- Finance
Furthermore, the report claims that blockchain adoption is gradual but progressive. In fact, at the moment only 14% of all blockchain engagements globally have reached the production stage. Nevertheless, the majority of blockchain users are ambitious and want to get to that level within the next two years.
Despite all the blockchain craze, the report found out that 60 percent of enterprises; are limpid about blockchain adoption and only 30 percent are ambitious but struggle to hit the ground. As per the report, taking a balanced approach towards implementing enterprise blockchain is crucial to its success. Gupta adds that it’s not possible for businesses to ignore blockchain since it is a value creation lever. However, she contemplates that people should not get carried away by the hype surrounding it.
Indeed, the findings of the survey suggest that 75 percent of executives; are employing blockchain for immediate impact or gain competitive advantage. The areas of focus include enhancing process efficiency and excellence, management of data and identity; business productivity, IT on top of transparency, trust and immutable payments and transactions.
Conclusion
The survey involved all major geographies of the planet including; Europe, North America, Asia Middle East, Latin America, and South-east Asia. Substantial coverage was on industries which include Banking, Financial Services, Insurance, Energy and Utilities, Industrial Manufacturing, Retail and CPG, Hi-tech and Telecom, Healthcare and Life Sciences, Travel and Hospitality, and Government and NGOs.