12 Oct Deloitte: 5 keys to accelerate blockchain development and adoption
A new report from Deloitte identifies five key areas for blockchain to develop before it’s ready for adoption in the business mainstream.
The report, “Blockchain and the five vectors of progress,” examines ways to enhance the technological capacity of blockchain, and opportunities to expand blockchain implementation in a broader array of industries.
Barriers to blockchain adoption
The five key areas limiting adoption of blockchain technology in the report include:
- Expansion of consortia and industry collaboration
- Regulatory advancements and clarity
- Ease of implementation
- Standards and interoperability
- Increase in transaction speeds.
Deloitte said there are more than 6,500 active blockchain projects on GitHub, many with different protocols, consensus, privacy measures, and written in different coding languages. A lack of standardization presents a big barrier to collaboration and adoption.
The cost and complexity of blockchain technology create big challenges for business adoption. Deloitte said companies such as Amazon, Microsoft, and IBM have made great strides in delivering less complex blockchain implementations and it hopes to see new products such as cloud services that simplify development and reduce cost.
Nearly 40% of blockchain-savvy executives said regulatory issues are a barrier to greater investment in blockchain technology. New technologies and tech-driven services often don’t fit within existing regulations or guidelines.
Where’s implementation at today?
It’s still early days for implementation of blockchain technology in most businesses. Deloitte provides several facts to illustrate:
- Blockchain is slow with bitcoin processing only 3-7 transactions per second and Ethereum up to 15 transactions per second
- Enterprise Ethereum Alliance now has nearly 600 members
- Hyperledger Foundation, an open-source collaborative effort created to advance cross-industry blockchain technologies, has reached 250 organizations
- 17 US state legislatures have passed dozens of bills pertaining to the adoption of blockchain technology
- A recent study counted some 61 blockchain consortia across a dozen industries globally
- 29% of respondents said their company was already participating in a blockchain consortium and another 45% said they were likely to join one.
The report concludes with recommendations to help companies get their arms around blockchain technology:
“Companies should keep an eye on emerging consensus mechanisms and techniques that could increase their transaction speeds exponentially. Developers of blockchain platforms and solutions should intensify their efforts to increase interoperability between ledgers and their connectivity with existing systems in the application landscape. As the vendor landscape for blockchain-as-a-service evolves further, the complexity of applying blockchain-based solutions will likely ease. Companies already have a wide array of options to help implement blockchain. They can evaluate these alternatives and choose the option most closely aligned to their needs.”
There is room for optimism but we’re at the very early stages of development of blockchain technology before implementation and adoption can take place.
More blockchain insights from Deloitte are available here.