According to a new survey by consulting firm Ernst & Young, more than two-thirds of enterprises in the Asia-Pacific region do not have a clear understanding of the blockchain technology and how to apply it.
One of the world’s largest audit firms and part of the Big Four, Ernst & Young (EY), carried out the survey during the blockchain internet conference, which was attended by 576 representatives of companies from the Asia-Pacific region, of whom 13.7 percent were from Singapore.
The study by the New York-based audit firm indicates that 68% of respondents admitted that they lack the knowledge and sufficient training to implement the blockchain. The study states that this lack of knowledge is the biggest hurdle for boards of directors and executives to implementing blockchain-based solutions.
Furthermore, 66% of the participants expressed confidence that they would need a clearer understanding of the possibilities, risks, and benefits of the blockchain technology before they can apply it in their businesses.
Adam Gerrard, a partner at EY LLP and the head of the blockchain for EY Asia-Pacific Assurance, noted that:
“Trust is a key factor and current barrier for companies in Asia-Pacific. Understanding and education is required to build trust and confidence with aspects of a business.”
Common Myths About Blockchain
The study also indicates that 46% of respondents noted the unreliable nature or trustless nature of blockchain systems and the fact that they do not need a central authority, as being the most hyped myth that they most often encounter with regard to blockchain technology. The second most common myth, according to the survey, is the unchangeable nature of the blockchain architecture, which was misunderstood by most enterprises.
Gerrard explained that the trustless principle refers to not requiring trust in this context, which is used as a term to describe the distributed nature of public blockchains. This is different from private blockchains, which usually have a central authority controlling the code and protocols needed. Therefore, the term trustless may not be a myth, but rather misunderstood, he added.
The next most common myth about blockchain that Asia-Pacific firms have heard is that it is not as unhackable as believed. Jimmy Ong — partner at EY Advisory and also an EY Asia-Pacific blockchain leader said that the terms “immutable” and “unhackable” have been misunderstood by numerous enterprises when it comes to blockchain technology.
Ong explained that although blockchain is difficult to modify unilaterally making it immutable – due to its ability to store data by linking it in blocks of transactions cryptographically to the previous block, the applications on top of it may not be infallible. He explained further:
“Blockchains will do for networks of companies and enterprise ecosystems what enterprise resource planning does for a single company.”
Meanwhile, Cointelegraph reports that Ernst & Young has launched various solutions this year that are meant to make public blockchains more secure as well as highly scalable for firms.
In a similar report released by audit and consulting company Deloitte, not all Asian countries are lost when introducing the blockchain. The report showed that 73%of Chinese enterprises consider blockchains to be one of the five most important strategic directions of development.