News: Majority of APAC firms lack understanding of blockchain solutions: EY poll

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Majority of APAC firms lack understanding of blockchain solutions: EY poll

For 46 per cent of respondents of a poll, the most commonly heard myth about blockchain is that it is a "trust-less" system.
Majority of APAC firms lack understanding of blockchain solutions: EY poll

Over two-thirds or 68 percent of Asia-Pacific companies lack understanding of the application of blockchain solutions, according to a poll by Ernst & Young (EY).

This lack of education is the greatest roadblock for boards and executives when it comes to adopting blockchain solutions, the consultancy said.

Around 66 percent of those surveyed believe they need a better understanding of the possibilities, risks, and benefits of blockchain before applying it to their organizations, finds the study.

"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,” said Adam Gerrard, partner at Ernst & Young LLP, and EY Asia-Pacific Assurance blockchain leader.

For 46 percent of respondents, the most commonly heard myth about blockchain is that it is a "trust-less" system and "does not require a central authority". "Trust-less" refers to "not requiring trust" in this context, which is used as a term to describe the distributed nature of public blockchains, Gerrard said.

This is different from private blockchains, which usually has a central authority controlling the code and protocols needed. Therefore, the term "trust-less" may not be a myth, but rather misunderstood, he added.

The next most common myth about blockchain Asia-Pacific firms have heard is that it is not as "unhackable" as believed. It is found that 51 percent of attacks occur when a single entity gains control over 51 percent of the network hash-rate, which refers to the processing power of the network.

Jimmy Ong, partner at Ernst & Young Advisory, and EY Asia-Pacific blockchain leader, added that the terms "immutable" and "unhackable" have been overused in the context of blockchain. While these terms are not completely wrong – they give the wrong impression.

Topics: #Corporate, Technology

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