Interest in enterprise Blockchains and distributed ledger technology (DLT) has grown significantly in the past few years, with at least 115 DLT start-ups now employing more than 2,000 people and many large corporations and public sector institutions focusing on DLT, says the first Global Blockchain Benchmarking Study by the Cambridge Centre for Alternative Finance (CCAF), supported by VISA and professional services firm EY.
At least 25 cryptocurrency-focused companies have pivoted to DLT activities, says the study, which gathered data from more than 200 enterprise DLT start-ups, established companies, central banks and other public sector institutions.
The report by the CCAF, at University of Cambridge Judge Business School, aims to chronicle the rapid growth of the enterprise and public sector DLT ecosystem, while also highlighting governance, technical and economic issues that will need attention to unleash the full potential of Blockchains and related systems. The report was authored by Dr. Garrick Hileman, Research Fellow at CCAF, and Michel Rauchs, Research Assistant at CCAF.
A section of the report is dedicated to investigating DLT activity in the public sector (including central banks), which employs an estimated 500+ staff members who exclusively focus on DLT within their institution. Findings show that 67% of central banks and 86% of other public sector institutions surveyed are directly experimenting with DLT protocols, with 57% of central banks experimenting with versions of the Ethereum codebase – the public Ethereum network, a permissioned version, or both.
“This is the first major empirical DLT study focussed on enterprise and the public sector. The over 100-page report contains new, non-publicly available data on what is actually happening right now in DLT areas such as targeted use cases, emerging revenue models, timing of deployment, and remaining challenges”, said Dr Garrick Hileman.
Among highlights of the study:
- The number of enterprise DLT start-ups has trebled since 2014, from 37 to at least 115.
- About 47 per cent of all enterprise DLT start-ups are based in North America (primarily in the US), followed by Europe (28 per cent) and Asia-Pacific (19 per cent).
- Banking and finance account for 30 per cent of publicly reported DLT use cases, followed by government at 13 per cent, insurance at 12 per cent and healthcare at 8 per cent.
- “Immature” technology is still considered one of the key challenges to broader DLT adoption.
- There is significant public sector DLT activity at the local, regional, national and multilateral institution level.
- 58% of public sector institutions (excluding central banks) have planned advanced DLT trials this year compared to only one quarter of central banks; 42% of central banks cannot yet predict when trials might begin.
- Only limited network and application deployment has been observed to date: the vast majority of users are experimenting with small-scale, isolated networks.
“‘Blockchain’ and DLT are beginning to rewire our digital infrastructure and challenge our thinking on how data, information, assets and even governance can be organised and reimagined,” said Bryan Zhang, Co-Founder and Interim Executive Director of the CCAF. “We are grateful for the support offered by VISA and EY to help us research and better understand the rapidly evolving DLT landscape.”
The study was compiled through two online surveys of private and public sector actors between December 2016 and May 2017 through secure web-based questionnaires, supplemented by secondary sources.
The report aims to make Blockchain technology understandable to a wide audience, beginning with a section entitled ‘Blockchain and DLT 101’, which explains that a Blockchain in simple terms is a type of database that is replicated over a peer-to-peer network. Contrary to other distributed databases, Blockchains and DLT can reduce the need for trust among participants and eliminate the need for a central administrator as entities have shared control over data. The section addresses when using a Blockchain is appropriate and debunks a number of common “Blockchain myths”.
Other sections include the DLT Landscape, including how the enterprise DLT ecosystem has evolved and a taxonomy of key ecosystem actors; Use Cases and Business Models exploring investigated applications and business models; Architecture and Governance comparing various DLT software architectures; Challenges and Interoperability examining obstacles to adoption; and Public Sector use of DLT.
Hamish Thomas, Partner, Financial Services Advisory, EY, said:
“Distributed Ledger Technology promises increased speed and efficiency, greater transparency and improved trust across transaction value chains. However, while the future looks exciting, there is still work to be done in areas such as legal and regulatory frameworks, industry standards, governance and security. This global benchmarking study will be a rich source of information, helping leaders across all sectors better understand current areas of focus, attitudes towards the technology and the types of questions that still need to be addressed.”
- Zug, Switzerland, To Pilot Blockchain-Based Voting Pilot - June 30, 2018
- UC Berkeley Opens New Blockchain Lab – Steve Chen Appointed to Co-Lead Newly Formed Berkeley Blockchain Lab - December 10, 2017
- Peter Vessenes Announces Deluge Network To Support a Safe and Direct Way to Contribute Bitcoin Directly to ICOs - December 5, 2017
- EXMO Launches Token Sale with Blockstarter’s ICO Solution - December 5, 2017
- AdHive, A Blockchain-Based Native Advertising Platform, Engages with WINGS DAO Platform - December 5, 2017
- Perkins Coie Adds SEC Attorney in San Francisco with Fintech and Blockchain Experience - December 5, 2017
- Cryptocurrency Monero Announces Breakthrough Online Shopping Initiative Featuring Top Global Artists’ Music and Merchandise - December 5, 2017
- Bitcoin for a ‘bit’ of Caribbean paradise - December 5, 2017
- With the Launch of SunCoin, Solar Bankers Takes On the World’s Energy Giants - December 4, 2017
- Blockchain News Is Merging With Token Report - November 30, 2017
- Mira launches Pre-ICO for Mira – an Easy and Convenient Way to Buy, Store and Send Cryptocurrency - November 23, 2017
- Dash and KuvaCash Partner to Fight Inflation in Zimbabwe with Cryptocurrency - November 22, 2017
- INS Ecosystem Partners with Ambrosus to Overhaul the Grocery Supply Chain - November 22, 2017
- Global Debt Registry Unveils Collateral Pledge Blockchain Proof of Concept - November 22, 2017
- Ripple Appoints Former New York State Superintendent of Financial Services Benjamin Lawsky to Its Board and Ron Will as CFO - November 22, 2017
- Advised by the Co-Founders of YouTube and Twitch, Theta Announces a Blockchain-based Video Delivery Network - November 22, 2017
- Modex adds top advisor from Google ahead of ICO - November 22, 2017
- Decentralized Ad Exchange AdEx Partners with INK to Handle the World’s First Blockchain-based Ad Auction - November 22, 2017
- Zilliqa Lowers Funding Cap Despite Heavy Demand from Investors - November 22, 2017
- Health Startup Etheal Combines Blockchain Technology with Micro-Incentives to Build a Peer-Reviewed Global List of Health Professionals - November 22, 2017
- Bitquence Rebrands as Ethos.io, Charting a Course to Unlock Crypto and the Future of Investment for the Masses - November 22, 2017
- Eidoo Introduces User Friendly ICO Engine – Allowing Crypto Startups To Launch And Manage Their Own ICOs For Fundraising On The Blockchain - November 22, 2017
- Simdaq Launches Social Platform for Democratisation and Development of Cryptocurrency Trading - November 22, 2017
- Gameflip Shatters FLIP Pre-Sale Goals, Sets Sights on December 4, 2017 ICO - November 22, 2017
- Golden Alliance Gold Mining Launches Token Sale - November 22, 2017
- Genaro and Storj Labs Announce Collaboration and Product Integration - November 22, 2017
- Metal (MTL) Now Available on the Chinese Cryptocurrency Exchange - November 22, 2017
- Mark.space & Jaguar Land Rover Announce Cooperation - November 22, 2017
- Exscudo – EON Testnet Was Successfully Updated - November 22, 2017
- Valorem Foundation Launches All-new Cryptocurrency Platform - November 22, 2017
- WAX Partners with Xsolla to Offer Its Platform to More Than 2,000 Video Games - November 22, 2017
- Brave expands Basic Attention Token platform to YouTube - November 22, 2017
- Narrative Launches Blockchain Based Social Network That Puts Revenue In Your Pocket, Not Mark Zuckerberg’s - November 22, 2017
- Gladius Uses Blockchain and Spare Bandwidth to Revolutionize Cyber Security - November 22, 2017
- Indorse Announces Partnership with App Store Cryptocurrency, AppCoins, ahead of MVP Launch - November 22, 2017
- Secutix And The Paléo Festival Nyon Announce The Success Of Their Blockchain Pilot Project - November 22, 2017
- ING launches major addition to blockchain technology: Zero-Knowledge Range Proof solution - November 22, 2017
- Cofound.it Announces Teams Participating in Upcoming Live Crowdsale Event - November 22, 2017
- PUBLIQ goes public: The blockchain and AI company that fights fake news announces the start of its Initial Token Offering - November 22, 2017
- Blockchain for Business SophiaTX Reveals New Details of Platform; Confirms Date for Token Generation Event - November 22, 2017
- BCShop.io Launches Partner Program - November 22, 2017
- World’s First Social Entrepreneurship Platform Moms Avenue Challenges Etsy by Gearing Up With Blockchain - November 21, 2017
- WAX Partners with Xsolla to Offer Its Platform to More Than 2,000 Video Games - November 20, 2017
- Pundi X integrates NEM blockchain to Bring Cryptocurrency Payments Into Retail Stores - November 20, 2017
- Fujitsu Develops Security Technology to Safely Connect Blockchains - November 20, 2017
- Jibrel Network Announces a Highly Successful Pre-sale Round - November 20, 2017
- KRAFTWERK on Blockchain - November 20, 2017
- MintHealth: Empowering Patients to Take Control of their Health and Data via Blockchain Technology - November 20, 2017
- IBM Completes PoC Of Blockchain-based Shared KYC With Deutsche Bank, HSBC, MUFG And Cargill, IBM Treasuries - November 20, 2017
- LetsEnhance.io to process images on Neuromation Platform - November 20, 2017