EY report: Blockchain is at a critical point of development, and the digital revolution is unstoppable (download the full report)

EY, the world's third largest multinational professional services company, believes that blockchain technology is at a critical stage of development. In its recently released report (download the full text), " Blockchain Reaction: Tech companies plan for critical mass ," EY details how blockchain, a technology with unlimited potential but not yet mature, will affect the future development of technology companies.

EY provides insurance, financial audit, consulting and advisory services to clients around the world. In this report, EY details the potential of blockchain technology and the main factors hindering its full development.

The report was written by several EY executives. Angus Champion de Crespigny, head of blockchain strategy, said: We advise companies not to think about how to integrate blockchain into their business processes, but to think about how their products and services can be integrated into the blockchain.

EY believes that blockchain is "the right technology at the right time". Nowadays, data leakage and security vulnerabilities are rampant, so blockchain, a tamper-proof digital record, is very important for enterprises. In addition, the algorithmic trust brought by distributed ledgers is enough to replace the trust mechanism within the enterprise (trust in employees). Moreover, blockchain, an emerging operating model and emerging market architecture, can promote the development of some existing industries, such as the Internet of Things (IoT) and the sharing economy, bringing about a digital revolution.

However, the report also mentioned that blockchain protocols have not yet matured, and their development scale is limited and the pace is slow. Blockchain technology also brought about Bitcoin, which has always been controversial in the financial field. The above problems have hindered the pace of investors and innovators in developing blockchain technology.

In addition, for blockchain technology to succeed, innovative companies and traditional institutions must conduct a lot of early experiments and R&D testing. Blockchain transparency, privacy, supervision and taxation issues have also always troubled most companies.

However, if businesses view blockchain technology as just a hype, they are making a big mistake. Angus Champion de Crespigny said:

The development of blockchain is surprisingly fast. If you think that blockchain technology is far away, you are wrong. Don't always be a follower. It's time to think about how to surpass others and shine in emerging markets in advance. Enterprises should accept the opportunities brought by blockchain, assess the risks, and gain a favorable competitive position.

The EY report mentioned that blockchain technology has already created a stir in the financial sector. Jeff Wong, EY’s Chief Innovation Officer, said: Blockchain technology is at a turning point in its development, and it would be too late if we don’t conduct in-depth research now.

The report also noted that blockchain is developing at a relatively slow pace because standards in the financial and technology industries have yet to be fully ironed out. But that doesn’t mean companies should sit on the sidelines. The report said:

As long as the development of blockchain breaks through the critical point, its influence will be astonishing.