APAC set for the rise of blockchain
With 72.6% CAGR in the period of 2017–2022 (by IDC statistics), blockchain in APAC is the fastest-growing region in the forecast period.
With the characteristic of an open market to new technology adoption, blockchain in APAC is blooming and has shown an incredible number of 522.7 million USD total in 2019 — recording an increase of 81% compared to 2018. The ability to maintain data privacy, improve the efficiency of the routine and the consistency durability are blockchain’s remarkable factcả titlors that are impacting the market growth.
APAC gets the highest CAGR of blockchain adoption by region
According to Gartner’s Blockchain scenario report, APAC accounts for 5.3% of surveyed organizations having already deployed blockchain applications. The number will rise up to 8.1% (excluding China and Japan) by 2025, showing a remarkable potential of blockchain in the area.
Enterprises, from startups to SMEs and technology giants, have adopted blockchain at different levels since its broad range of usages across industries.
As the first of its applications, blockchain in finance is the most flourishing above all due to multi-beneficial applications, namely smart contracts, payments, cross-border transactions, digital ID, and so on.
Another IDC statistics show that blockchain growth in APeJ (Asia-Pacific excluded Japan) will maintain pace with the rest of the world at 72.6% CAGR in the period of 2017–2022 with 11.7 billion USD total spending by 2022. Japan, at an estimate of 108.7% CAGR, is also presumed to lead the entire world in blockchain spending.
China is one among other major and dynamic economies contributing to the enormous growth of blockchain in APAC with 3.6 billion USD investment. “Blockchain is an important breakthrough in independent innovation of core technologies”, said Xi Jinping, which further undermines China’s ambition in becoming the world leader in implementing blockchain.
Experts expect blockchain in Singapore to reach up to US$272 million by 2022 and US$2.6 billion by 2030 with a 32.5% CAGR.
Three highlights that make APAC an ideal environment for emerging technology like blockchain to swell
- Enthusiastic Regulatory Environment:
While other major economies like the U.S, Europe still hesitate to blockchain, countries in APAC are more eager to blockchain solutions. According to a Cognizant report, Australia and Hong Kong’s regulators are providing the necessary thrust for blockchain innovation by establishing regulatory sandboxes to ease testing and piloting of blockchain projects. Investors also showed a willingness to participate in risky play.
- A cross-border workforce:
A vast number of people working abroad creates a demand for a more secure and convenient way to send money home. Blockchain-backed cross-border payment solutions can give them this convenience and cut off the fee significantly. Besides, blockchain payment solutions also help governments to control the transactions more effectively.
- A growing middle class:
As the growing number of billion people being Asian (88% in 2020), the need for reliable financial services is rising. Blockchain has shown the potential to provide solutions to tackle these demands.
Barriers that impede blockchain adoption
Ernst & Young’s 2019 survey said that 68% of firms in APAC lack an understanding of blockchain, what is enterprise blockchain and its applications. This gap in knowledge causes the top challenge to blockchain adoption in enterprises.
These firms also emphasized that a more thorough understanding of blockchain’s benefits and risks would be an impulse to implementation. 46% of survey participants said that they believe in blockchain possibility, but their concern mostly generates from the misconceptions surrounding blockchain and its hype.
Moreover, the scalability and interoperability are also the challenges for enterprise blockchain to deal with while attempting to boost up blockchain adoption.
The future of blockchain in APAC
After witnessing a trial period of POC and pilot applications, governments, investors, and enterprises have drawn some notices of both the pros and cons of blockchain. The future of blockchain in APAC is becoming more sustainable.
In the public sector, governments are actively promoting the development of blockchain with many blockchain applications, typically creating digital IDs for people, such as Singapore with Singpass, Malaysia with MyKad, the Philippines with Phil-ID, Thailand with NDID and so on.
Companies are also paying more attention to the impact of security and privacy after many personal data breaches that cost them billions of dollars. Blockchain, however, is not the solution for every business problem. So, leaders should question themselves about the issues inside their companies before adopting blockchain or even any emerging technology.
Numerous blockchain failure solutions due to lack of knowledge have caused a vigilance to companies. Now the priority should come to blockchain education to truly understand the ability of blockchain in business.
To accelerate the adoption, both regional and global standards for blockchain implementation are essential for the future of a connecting blockchain system.
“Our plan for a unified blockchain system starts with building up blockchain applications/systems for separated clients. Currently, we are providing our clients (namely Masan, Bayer, VPBank) different blockchain solutions, such as Loyalty & Reward Network, Digital ID, credit scoring, eKYC,… In the future, akaChain will connect these systems into a mutual one as soon as the estimations and conditions are met”, said Mr.Giang Tran, CTO of akaChain and member of Forbes Technology Council.
akaChain is backed by FPT Software, a globally leading technology, and IT services provider. It is an end-to-end, permissioned, multi-chain network based on the Hyperledger Fabric. Since Establishment in September 2018, akaChain’s product has assisted many enterprises, from SMEs to Fortune 500 firms, to transform with distributed ledger technology. The company provides a broad range of permissioned blockchain-based products and services in multiple sectors, including retail, supply chain, banking and finance, insurance, shopping mall management, etc. to transform with its distributed ledger technology. For more information, please visit https://blog.akachain.io/.
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