A seamless user experience is one of the keys to the widespread adoption of blockchain technology, according to a report released on August 19 by digital marketing agency Zage.
The report is based on interviews with 102 blockchain leaders whose projects are all in practical use today, including venture capitalist Tim Draper, Civic Technologies COO Chris Hart, and Litecoin founding Director Franklyn Richards.
Matt Harding, head of blockchain marketing for Zage, noted that enough of the hype around blockchain is over, so that it is possible to, “focus on the projects that already have customers and are already making a difference. The time of easy ICOs has passed, and now real projects with real use cases that add value to users’ lives can flourish and show the substance beyond the hype.”
Many of the respondents in “The Real World Applications of Blockchain” believe user experience will be a key component of success, with 41% saying the “Blockchain DApp experience needs to live up to the web and mobile UX.”
Unsurprisingly, a majority (56%) said financial services was the industry that will benefit most from blockchain in the next five year, with that healthcare, supply chain, and gaming also frequently mentioned.
This emphasis on financial services matches a recent IDC Report that predicts that spending on blockchain will grow from $2.7 billion this year to $15.9 billion by 2023. Banking and financial services will be leading the way, IDC said, predicting it will account for nearly one third of that growth.
“People are already using blockchain in everyday life,” said Draper. “The blockchain is just a perfect ledger. It keeps perfect information on Bitcoin use, and it keeps perfect information on any other form of data, too. It is being used to secure data for everything from medical records to certification of education.”
While agreeing that traditional financial systems are likely to be revolutionized by blockchain, George Coxon COO at the Nano Foundation, predicted that the developing world is where the biggest change will be seen in the medium term.
“The most likely source of growth in the medium term will be in areas of the world in which there is a pressing need for more open and accessible economies,” Coxon said. “Cryptocurrency can provide people with the basis to build more stable local economies and take ownership of their wealth… The first big waves of adoption will not be people that have been convinced to use blockchain technology, but by people that need it—I think this is a crucially overlooked point.”
Another crucial point is the need for regulation, said Hugo Renaudin, co-founder and CEO of LGO Group. “[I]t allows companies to make structural decisions without the risk of a regulatory backlash. No regulation is worse than bad regulation, as this stifles innovation and inhibits entrepreneurs and companies.”
The Senate Banking Committee heard this same point during its July 30 hearing on cryptocurrency’s future.
“Without a national policy framework for digital assets, I’m concerned that the United States will not be the world leader in this critical new technology,” Circle chairman and CEO Jeremy Allaire told the committee. “It will continue to fall behind, and it will not fully reap the benefits of the economic transformation that digital assets will bring.”