Greenwich Associates, a provider of market intelligence and advisory services to the financial services industry, recently published a survey report on the adoption of blockchain technology by corporations.
Entitled as ‘Greenwich Associates 2018 Blockchain Adoption Study,’ the report attempts to answer the question “Why have the tech and financial industries lagged their own blockchain expectations?”
Greenwich Associates interviewed 213 global market participants involved in blockchain initiatives. The respondents included representatives from a wide range of corporations, like technology vendors, exchanges, and consultancy firms, banking sector, etc.
According to 57% of the blockchain executives actively associated with blockchain, “implementing enterprise technology designed to replace decades of legacy market infrastructure is no simple task.” They pointed out that it was in fact “harder than expected.”
Additionally, 42% of respondents highlighted scalability as a major concern among corporations in implementing distributed ledger technology (DLT) solutions.
Moreover, the most distinctive feature of the blockchain, i.e., transparency, was something that not all companies were comfortable with. Almost two-thirds of respondents indicated that incorporating zero-knowledge proofs (ZKP), or similar technology, are an essential part of an enterprise solution.
Richard Johnson, Vice President of Greenwich Associates Market Structure and Technology and author of Building Blockchains, commented,
“ZKPs are a recent innovation… They require an additional layer of cryptography in the consensus protocol that allows one party to prove to another that something is true without revealing any other information.”
Based on its survey, Greenwich Associates report also identified a few other daunting challenges faced by firms like hardware security, transaction confidentiality, the payments leg, and ‘editable blockchains.’
Interestingly, the report also stated that only 14% of companies were reportedly working with central banks for a solution to digital currency.
However, being optimistic regarding the findings, Johnson said:
“It’s important to note that a few firms have achieved much faster transaction speeds with DLT solutions—showing that competitive speeds are possible.”