Casper Labs report: Businesses highly interested in blockchain, but adoption gap persists

When you hear (or read) “blockchain”, what comes to mind?

Crypto? Bitcoin? Some terrifyingly complex technology?

These are all misconceptions, says Mrinal Manohar, CEO and co-founder of Casper Labs.

But even as such confusion persists—and widespread fundamental knowledge continues to lag—there is a unique conundrum: Interest in adopting blockchain is at an all-time high, according to a survey released today by the company.

“There is a huge misconception about what blockchain actually does,” Manohar said. “It’s about so much more than crypto.”

Blockchain, and benefits, defined

Simply put, blockchain is a ledger of information stored in a traceable and tamper-proof manner across a distributed network of computers.

“Blockchain ultimately provides the best version of copy protection and digital certification we’ve ever seen,” Manohar said.

These are both important for an “almost limitless” pool of business applications, he explained. And, yes, while the first use case was digital money in the way of Bitcoin, copy protection can be applied to anything.

For example, the supply chain. Blockchain technology enables organizations to manage the life cycle of an item from its creation, until it can be certified, until it is sold or transferred (and it can ultimately be sold or transferred multiple times). Not only that, the condition – such as temperature – can be verified at any given point on the journey from point A to point B.

Manohar cited other examples like patents, degree certificates, home ownership, “the list goes on.”

Persistent knowledge gap, steep learning curve

Despite such widespread benefits, business leaders and developers alike continue to lack basic knowledge about blockchain:

• More than half (54%) of respondents still see “blockchain” and “crypto” as interchangeable terms.
• Almost all (98%) respondents said they would be more likely to adopt blockchain if they learned more about the technology and understood how their peers were using it.

Furthermore, there is a steep learning curve for developers during or after blockchain implementation; this was cited by more than half (52%) of respondents, who called it the most common challenge with adoption (25%). This is followed by a lack of viable tools (24%), interoperability issues (20%) and anti-blockchain cynicism (18%).

“Today’s volatile digital asset markets limit the public’s perception of what blockchain is and how it can positively impact their business,” Manohar said.

The term and technology remain (wrongly) wrapped up with “crypto,” he noted, but the latter is really just a simple application of blockchain.

He pointed out that this obscures the reality that many organizations with meaning are adopting blockchain technology today.

Survey respondents reported using blockchain to meet security requirements (42%) and manage copy protection (42%). They also leverage technology to support operational improvements and innovations, such as:

• Building internal operational workflows (40%)
• Making supply chains more efficient (34%)
• Develop software (30%)
• Manage contracts (21%)
• Employment and recruitment (11%)

“Blockchain is a proven way to reduce costs and open new revenue streams,” Manohar said.

Despite ignorance, strong interest

Still, ignorance is not bliss: Survey respondents expressed a strong interest in adopting blockchain, and nearly 90% in the US, UK and China are beginning to use blockchain in some capacity. Also:

• 87% are likely to invest in a blockchain solution in the next 12 months. This is especially true in China, where more than half are “very likely” to make an investment.
• 81% expect technology budgets to increase in 2023, even amid an expected slowdown.

In fact, the global blockchain technology market size is expected to achieve a monumental compound annual growth rate (CAGR) of 85.9% between 2022 and 2030.

“Enthusiasm for blockchain’s potential remains quite high, as does a stated desire for more dedicated educational resources,” Manohar said.

And even in areas like China where adoption intent is high, the general consensus remains that more education is needed for successful widespread use.

“It’s not a one-size-fits-all solution by any means, but it’s an incredibly powerful tool to add to your organization’s IT tool belt if the right use case exists,” Manohar said.

To this point, Casper Labs—which calls its Casper Network the first live proof-of-stake blockchain built off the Casper CBC specification designed by Ethereum developers—first asks potential customers, “what is your comfort level with this technology and how it can potentially help you?”

Manohar explained that “we always want to make sure businesses understand what blockchain can and cannot do.”

A pivotal moment

But where to start?

To set themselves up for successful adoption, organizations should start by researching the right blockchain for their needs, Manohar advised. There is a lot of material online, as well as white papers and Casper’s own e-book, Everything you ever wanted to know about Blockchain.

In short, organizations should “look for blockchains that focus on interoperability with existing technology stacks so they don’t have to overhaul their infrastructure,” Manohar said.

It’s also key to look for blockchains written in languages ​​familiar to mainstream developers and compatible with an organization’s existing toolset, he said. And it’s also important to look for tools like upgradable smart contracts – which bring software development best practices like continuous deployment and continuous integration to the blockchain.

Finally, organizations should ensure they can find a partner that provides the dedicated professional services they need to “keep the lights on” if something breaks (eg at 2am).

Ultimately, Manohar said, “we’re really at a pivotal moment for both blockchain and enterprise technology in general.”

Businesses, governments and Wall Street are beginning to realize that blockchain is not here to “tear down and replace their current technology stack,” he said, but help them operate more efficiently within existing infrastructure.

As he put it, “blockchain is ready for the enterprise, and enterprises are ready for the blockchain – they just need the right knowledge and tools.”