Blockchain Trends 2020
Blockchain Trends 2020
Blockchain Trends 2020
C-Suite Briefing
5 Blockchain Trends for 2020
March 2020
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5 Blockchain Trends for 2020 | Contents
Contents
A glance back… 2
The Hype is Over 3
Evolving platforms 4
Adoption Rates across Industries 6
Governance is Critical 9
The Rise of Tokens 13
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5 Blockchain Trends for 2020 | A glance back…
A glance back…
Now that we’ve settled into 2020 and the beginning of a new decade,
we have the opportunity to look back at how far we’ve come, and how
far we have to go.
1
World Economic Forum
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5 Blockchain Trends for 2020 | The Hype is Over
The corporate blockchain hype this trend and a greater focus Additional signs of blockchain’s
cycle is slowing developing on utilising the maturation could be seen in the
In recent years, Blockchain has been technology to solve real business
diverse—and sometimes discordant
heralded as a major disrupter on issues and deliver value. responses of surveyed `CEOs; the
track to rattle almost every industry barriers to entry that they faced
from agriculture and manufacturing 2019 revealed the emerging shared varied, as did the perceived
to FS and insurance. While in many belief that blockchain is real and that advantages of blockchain which they
cases, the technology’s promise can it can serve as a pragmatic solution identified. Such diversity of thought
be clearly seen, faith in Blockchain to business problems. Even leaders, can be viewed as a mark of
has fallen victim to “the massive initially wary of tech-based solutions, maturation because it reflects an
hype and irrational exuberance in theappeared to see potential in the enhanced sense of seriousness in
past, driven largely over a Bitcoin- technology. Specific supporting consideration of the technology’s
buying frenzy.” 2 indications from our 2019 Global possibilities and limitations.
Blockchain Survey include the
In the wake of the hype, a tendency increasing perception of blockchain Now, in 2020, we can see that the
toward Blockchain tourism developed as a top-five strategic priority, the prevailing question among executives
– where we would see intrigued sustained levels of blockchain is no longer, “Will the technology
companies come to gawk at the investment, and the improved work?” but rather, “How can we
technology, kick it around for a few sentiments measured across an array make technology work for us?”
weeks before deciding they were of attitude statements, including the
more comfortable where they share of respondents who agree that
currently were. But as we moved blockchain offers compelling use
through 2019, we saw a fall away in cases.
2
Forbes
3
5 Blockchain Trends for 2020 | Evolving platforms
Evolving platforms
The leading platforms at the end of 2020 will be those that can offer a
unique combination of features to players and consortia building
enterprise level solutions.
2018 saw a much needed clean up of The Blockchain Trilemma The balance of these three
the Blockchain ecosystem as characteristics is thus a major
overhyped projects failed and shady consideration for any blockchain
How do the different networks
get-rich-quick schemes were weeded network provider, as well as for their
measure up?
out; 2019 brought the rise of customers who choose to build their
Blockchain’s viable platforms and Corda Ethereum VeChain solutions on the network
more pragmatic developers such as
VeChain, Corda, Hyperledger, and Decentralisation In 2019, we saw a diversification in
Ethereum; Now in 2020, the leaders the industries investing in blockchain
will emerge based on the unique with a particular rise in players from
combination of features that they supply chain, life sciences and TMT.
offer to companies and consortia Their needs differ from the needs of
building production level solutions. the initial forerunner, FSI, and thus
the network that appeals the most,
also differs.
Decentralisation
Security Scalability
/Futile
4
5 Blockchain Trends for 2020 | Evolving platforms
5
5 Blockchain Trends for 2020 | Adoption Rates across Industries
6
5 Blockchain Trends for 2020 | Adoption Rates across Industries
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5 Blockchain Trends for 2020 | Adoption Rates across Industries
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5 Blockchain Trends for 2020 | Governance is Critical
Governance is Critical
As the technology matures, we can see that the core challenge in the
path of Blockchain’s large-scale adoption is stakeholder management and
bringing competitors and unlikely collaborators together to solve shared
problems.
2019 made clear that technology Core Challenges in developing driving a shared objective. A working
barriers are not holding blockchain blockchain consortia group does not operate as a legal
back – but rather human barriers. entity – each participant owns and
With our clients, we have discovered 1 Allying with competitors operates their own node.
that many of the core benefits of
blockchain technology are only
realized through collaborating with
other parties in the ecosystem or 2 Agreeing on participants
indeed forging new cross-industry
partnerships. In short, a solution’s
value is often directly linked to the Reaching consensus on
3 Private Sector Entity
value of the network it serves. shared goals A separate and autonomous legal
entity is created in order to establish
McKinsey has suggested that
a private sector entity governance
Blockchain is still three to five years
4 Defining a funding structure structure. The platform is typically
away from feasibility at scale,
offered as a utility for participants
primarily because of the difficulty of
who operate their individual nodes.
resolving the “coopetition” paradox
Sharing both risks and The project tends to be jointly funded
to establish common standards. 5
successes by founding members as core
Gartner’s senior VP for technology,
stakeholders in the Steering
Peter Sondergaard echoed this,
Committee.
‘there are still technical things that Consortia Governance Models
you need to solve and scale and
there are still counter-aspects – Three major governance options are
business model wise – that aren’t emerging for blockchain consortia;
necessarily fully clear.’
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5 Blockchain Trends for 2020 | Governance is Critical
Blockchain Consortia
Blockchain Consortia
Strategic Considerations
Goals of collaboration
Responsibilities of involved
parties
Contribution
Intellectual Property
Technology Considerations
Confidentiality Agreement
Legal Entity
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5 Blockchain Trends for 2020 | Governance is Critical
The human challenges that arise in the building of a blockchain solution require personal collaborations to be remedied
Equal participation can slow down decision making Start with an efficiency case as the business case is
much easier to assess
Votes should reflect investment and sub committees
should reflect interests The platform needs to bring some form of value to all
participants.
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5 Blockchain Trends for 2020 | Governance is Critical
“Coopetition”
—a willingness to work
with your competitors
and others in your
industrial ecosystem
toward some common
purpose.
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5 Blockchain Trends for 2020 | The Rise of Tokens
A new token economy could make It goes without saying that obstacles Where to play is a core question to be
the financial industry more continue to stand in the way of answered. The choice may vary from
accessible, cheaper, faster and widespread adoption, principally in advisor to token exchange broker
easier, thereby possibly unlocking the form of regulation. The bold depending on the institutions business
model.
trillions of euros in currently illiquid suggestion from industry in 2019 of
assets, and vastly increasing the an imminent digital currency will
volume of trade. push governments to provide Cybersecurity
guidelines on this unchartered
Tokens have been broadly sorted territory sooner than they may have Sufficient security measures need to
into two categories; Fungible and envisaged paving the way for the rise be ensured to secure the entire value
Non-fungible. of tokens to mainstream society. We chain when interacting with a
blockchain platform. SECaaS (Security
can remain confident that only
Fungible Token; Fungibility refers as a Service) could be an additional
institutions that engage with the revenue stream.
to the ability of a good or asset to
technology, plan for the future and
be interchanged for another good
adapt to the realities will thrive.
or asset for like kind. Therefore a Jurisdiction
fungible token is one which might
represent currency, crude oil, Ensuring a token’s compliance across
shares, bonds. Each token, or jurisdictions will bring new
fraction of a token, is equivalent to complexities which require
consideration.
the next.
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5 Blockchain Trends for 2020 | The Rise of Tokens
https://www.weforum.org/agenda/2020/01/blockchain-
predictions-2020
https://www2.deloitte.com/content/dam/Deloitte/lu/Doc
uments/financial-services/lu-tokenization-of-assets-
disrupting-financial-industry.pdf
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To find out more, contact:
David Dalton
Partner | Head of EMEA Blockchain Lab
Deloitte Ireland
ddalton@deloitte.ie
Antonio Senatore
Director | Global Blockchain CTO & EMEA Blockchain Lab Lead
Deloitte Ireland
asenatore@deloitte.ie
Amy Pugh
Manager | EMEA Blockchain Lab
Deloitte Ireland
apugh@deloitte.ie
Hannah Lynch
Analyst | EMEA Blockchain Lab
Deloitte Ireland
hlynch@deloitte.ie
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