This study provides an empirical overview of the current state of both enterprise and public sector use of blockchain and distributed ledger technology (DLT). The study gathered data from over 200 enterprise DLT start-ups, established corporations, central banks and other public sector institutions, including non-public data obtained through confidential online surveys.
The study also explains the concept of ‘blockchain’ and DLT, highlights the different DLT architectures, and dives into governance-related issues. Finally, an entire section is dedicated to investigating how the public sector is approaching DLT.
Key Highlights Of The Report
- Significant growth of the enterprise DLT ecosystem: at least 115 DLT start-ups employing more than 2,000 people are active in the ecosystem, in addition to large established corporations that increasingly set up entire business units and research labs exclusively dedicated to DLT
- The protocol layer is slowly maturing: several dozen start-ups and established corporations are building and improving the core infrastructure (protocol frameworks,
core building blocks), but ‘immature technology’ is still considered one of the key challenges to broader DLT adoption
- Only limited network and application deployment to date: the vast majority of users are experimenting with small-scale, isolated networks; live applications are mostly built as ‘permissioned layers’ on public blockchains
- Majority of use cases focus on financial services: the majority of enterprise DLT companies are targeting financial and insurance-related use cases and actors, but increasing attention is being given to non-monetary applications (e.g., identity, supply chain, intellectual property)
- Trend towards opening core infrastructure platforms: an increasing number of companies are open-sourcing their codebases, shifting monetisation of the platforms to higher stack levels (e.g., consulting, application development, support)
- Key challenges to broader DLT adoption remain: unclear regulatory environment and legal risks are most often mentioned as key challenges; study participants consider privacy and confidentiality to be more of an issue than scalability and performance concerns
- Interoperability still in its infancy: the current landscape is fragmented and comprised of incompatible protocols, but there is an increasing focus on developing common standards via the joint development of enterprise DLT frameworks by a variety of consortia
- Significant public sector DLT activity observed: local, regional, national and multilateral institutions are all engaged in DLT-related activities; 77% of countries represented in the study have multiple institutions showing an interest in DLT
- Public sector institutions are experimenting with a variety of DLT protocols: 63% of central banks and 69% of other public sector institutions (‘OPSIs’) have already been involved in proofs of concept and/or running trials; OPSIs are generally further ahead than central banks
- Ethereum has been widely tested at central banks: 57% of central banks are experimenting with either the public Ethereum network or a permissioned version
- Existing DLT deployment plans: 15% of OPSIs plan to deploy DLT-based applications this year, and another 23% plan to do so within the next two years; the timetable for central banks is more conservative than for OPSIs
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Posted in Blockchain, Report, Technology Tagged with: Blockchain, Cambridge Judge Business School, Distributed Ledger Technology, DLT, Peer-to-Peer
Which control principles are essential for blockchain adoption on a global scale?
Since its mention by Satoshi Nakamoto in the 2008 white paper ‘Bitcoin: A Peer-to-Peer Electronic Cash System’, blockchain technology, also called Distributed Ledger Technology (DLT), has attracted significant attention among the global financial services community. Researchers and investors are increasingly interested in the transformative and disruptive ability of this technology to:
- Facilitate an exchange of value
- Enable the safe storage of value
- Achieve operational efficiencies
- Secure cost savings
- Increase industry transparency
- Enhance customer experiences
In this paper, we consider three macro factors which we consider essential to the widespread adoption of private DLTs within the financial community in the long term. These macro factors are:
- Legal and Regulation
Although this paper discusses each factor in isolation, financial institutions should view all three as interdependent and complementary when considering DLT adoption.
When introducing DLT into the enterprise, it is essential that the DLT system is capable of integrating and interoperating with other systems, including other blockchain solutions or technologies. Even within individual DLT implementations, the blockchain component is likely to be a single part of a larger whole, with additional data stores, messaging systems, interfaces and touch points to both internal and external systems. Institutions therefore need to ensure that all systems are capable of interconnecting and communicating with one another.
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Posted in Deloitte, Report Tagged with: Bitcoin, Blockchain, Cybersecurity, DLT, ERC20, Financial Services, Peer-to-Peer, PKI, Smart Contract