Time For Trust: The Trillion-Dollar Reason To Rethink Blockchain

October 17, 2020

In this PwC report, the consultancy explores the impact of blockchain technology on the overall global economy. The following are excerpts from the report.

Blockchain technology has the potential to boost global gross domestic product (GDP) by US$1.76 trillion over the next decade. That is the key finding of PwC economists, who have assessed how the technology is currently being used and gauged its potential to create value across every industry, from healthcare, government and public services, to manufacturing, finance, logistics and retail.

Organisations are rethinking the way they operate as they grapple with the impacts of COVID-19 and the way the pandemic has accelerated many disruptive trends – such as the shift towards more digital ways of working, communicating and transacting with customers.

Set for success: The top five uses driving blockchain adoption

  • Provenance (potential boost to global GDP by 2030: US$962bn)
    Blockchain has enormous potential to help organisations verify the sources of their goods and track their movement at every step, strengthening transparency in any supply chain. Fraud, contaminations or counterfeits can be pinpointed immediately, ensuring customer safety and enhancing efforts to be socially and ethically responsible.
  • Payments and Financial Instruments (US$433bn) Central Banks around the world have been exploring how blockchain can improve their nation’s payments infrastructure through central bank‑issued digital currencies (CBDCs).Wholesale CBDCs can facilitate more efficient clearing operations between central banks and their member banks, while retail CBDCs would effectively be the equivalent of a bank note, in digital form, for public use.
  • Identity (US$224bn)Blockchain can safeguard valuable personal credentials online, from personal identification, such as driving licenses, to professional credentials and certificates, bringing vast cost efficiencies and helping to curb fraud and identity theft.
  • Contracts and Dispute Resolution (US$73bn) Blockchain holds great promise in the realm of contracts and dispute resolution. The technology can bring together ledgers, contracts and payments, improving the flow of commercial agreements and flagging any disputes.
  • Customer Engagement (US$54bn) Blockchain can breathe new life into traditional, card-based loyalty and reward programmes. The technology can boost engagement through integration with customer relationship management (CRM) platforms such as Salesforce3, HubSpot CRM and Microsoft Dynamics 365 Sales and generate more value by making them more user-friendly for smartphone users.

PwC economists expect China and the United States to benefit the most from blockchain technology over the next decade.

Our economists expect blockchain technology to bring benefits across a wide range of industry sectors.

Much of the value will be realised behind the scenes. We expect between 10% and 15% of worldwide infrastructure to be using blockchain within a decade.
The biggest beneficiaries look set to be the public administration, education and healthcare sectors.

PwC economists expect these sectors to benefit to the tune of $574bn by 2030, by capitalising on the efficiencies blockchain will bring to the world of identity and credentials.

Meanwhile, there will be broader benefits for business services, communications and media, while wholesalers, retailers, manufacturers and construction services will benefit from using blockchain to engage consumers and meet demand for provenance and traceability.

Source: PwC

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