The current state of Blockchain technology

Blockchain technology has been making waves across various industries, with an increasing number of organizations embracing its potential. According to PwC's 2018 survey, 84 per cent of organizations have some involvement with blockchain technology, signaling a significant level of adoption. Andrew Nevin, Partner and Chief Economist at PwC, joined CNBC Africa to discuss the findings of the report and shed light on the current state of blockchain technology adoption. The survey highlights that while blockchain offers a transformative way of creating a distributed ledger shared by multiple parties, trust remains a critical issue for businesses venturing into this space. Nevin emphasized the need for caution as the industry is still in its nascent stage and gaining confidence in the technology is crucial before widespread adoption. One of the key points Nevin raised was the distinction between Bitcoin and blockchain, noting that the two were often conflated in the early stages. However, with increasing maturity in understanding blockchain, there is a growing recognition of its potential beyond cryptocurrencies. Blockchain's ability to provide a single version of truth shared among industry players with varying permission levels for updating the ledger presents a powerful proposition. Nevin likened blockchain to being the most significant technological advancement since the internet, underscoring its transformative impact. The survey also explored real-world trials of blockchain technology, with notable examples in Africa demonstrating its practical application. Nevin cited the collaboration between the South African Reserve Bank and major banks in conducting real-time gross settlement using blockchain. The successful implementation showcased the efficiency and transparency that blockchain offers in financial systems. Additionally, Nevin highlighted a pioneering trial in Nigeria led by the customs department, which utilized blockchain for managing excise tax licenses and creating a shared ledger among regulatory bodies and manufacturers. These trials exemplify the tangible benefits of blockchain in streamlining processes and enhancing oversight. In terms of industry adoption, Nevin discussed the varying readiness across sectors, with financial services leading the way in exploring blockchain solutions. He noted the momentum within the financial services sector towards conducting real trials and emphasized the importance of gradual implementation through consortiums. Beyond financial services, Nevin identified potential use cases in land registry and pharmaceutical industry, where blockchain can enhance transparency and traceability of assets. He also speculated on the potential interest of tax authorities in leveraging blockchain, inspired by the success stories in other sectors. As organizations navigate the complexities of integrating blockchain technology into their operations, the key takeaway from PwC's survey is the need for a strategic and cautious approach. Building trust, understanding the technology's capabilities, and piloting real trials are essential steps towards realizing the full potential of blockchain. With Africa emerging as a hub for innovation in blockchain technology, the future holds exciting possibilities for businesses willing to embrace this transformative tool.