A report from consultancy PricewaterhouseCoopers Hong Kong and Shanghai-based blockchain startup VeChain on the non-financial application of blockchain, has found that logistics, government and medical industries could be key beneficiaries of the technology.
The report was put together from a online questionnaire and focus group conducted in November and December 2017, with 130 questionnaires completed and 40 respondents in the focus groups.
85.7% of respondents say that a core feature of blockchain is that it is “tamper-resistant”.
“Blockchain’s tamper-resistant and distributed data storage features enable us to improve traceability and transparency for logistics and supply chain management. These characteristics will be put to use in optimising business transactions and trade relations,” said Sunny Lu, CEO of VeChain. He added: “With people’s increasing awareness and knowledge of blockchain, ‘killer’ applications are sure to emerge, and initially these are most likely to occur outside of the financial sector.”
Respondents think that management decisions will have the most influence over the speed of implementation of blockchain technology. Cost was deemed to have the least significance.
PwC China Partner Chun Yin Cheung said of the report’s findings: “Blockchain has transformative potential, its implementation can affect a company’s underlying business model. When it comes to technologies that impact the underlying architecture of the business model, an enterprise usually prefers to build a R&D team of its own. An in-house R&D team can facilitate system maintenance and information security while reducing costs. At the same time, many enterprises prefer to keep the underlying architecture of the business model under their control.”
The report, entitled 2018 Market Survey Report for (Non-financial) Application of Blockchain in China, concludes that a standardised framework will be critical for blockchain development and comes just as a Chinese government spokesperson has said it wants to see such standards implemented in the country by 2019.
Li Ming, director of the Blockchain Research Office at the standards institute, part of the Information Technology Ministry, says national blockchain standards need to be introduced in China “as soon as possible”.
China has the highest number of blockchain projects outside of the US.
VeChain is 7.36% higher Thursday, at $5.36.
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK’s second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane