Top five blockchain use cases will be provenance, payments and financial instruments, identity, contracts, and disputes resolution and customer engagement, the report by PwC predicts
A new PricewaterhouseCoopers (PwC) study has found that blockchain technology may potentially add $1.76 trillion to the global gross domestic product in the next 10 years through its wide range of use cases.
The study by the accounting giant, titled Time for trust: The trillion-dollar reasons to rethink blockchain, explores the impact blockchain technology could have on the global economy. It further looks at how blockchain can create opportunities for organisations to deliver value by building trust and improving efficiency.
More than 50% of CEOs believe that declining trust in business processes was negatively affecting their organisation, a PwC survey had previously stated. The emerging interest in blockchain can be attributed to the need for a more efficient system that can integrate trust in processes that depend on intermediaries, the study found. Blockchain technology would contribute to 1.4% of global GDP by 2030, the report explained.
PwC economists assessed that blockchain technology could impact various industries, ranging from healthcare, government and public services, manufacturing, finance, retail, and logistics. They further claimed that a majority of businesses in the above-mentioned industries will be integrated into blockchain in one form or the other by 2025.
Blockchain will play an important role in helping organisations verifying contracts, identity documents, certificates, records, and agreements. The study found that provenance, payments and financial instruments, identity, contracts, disputes resolution and customer engagement will be the top five use cases of blockchain in the next 10 years.
The use of blockchain for provenance is expected to add $962 billion to global GDP. Payments and financial instruments may potentially add $433 billion, while identity contracts and disputes resolution, along with customer engagement are expected to have an impact of $224 billion, $73 billion, and $54 billion, respectively, by 2030.
“Serious activity around blockchain is cutting through every industry across the globe right now. It’s driven by an acute need to win trust in the digital world. Businesses are rethinking their operations and are discovering not only is blockchain technology key to delivering trust, but it’s an opportunity open to all,” Steve Davies, Partner and Blockchain Leader, PwC UK said.
Blockchain will add $66 billion to the global economy by the end of 2021, the report claimed. By 2025, blockchain’s impact will increase 6.5 times, taking the valuation to $422 billion. China and the US are expected to add $440 billion and $407 billion to their GDP through blockchain.
Written by Harshini Nag