16 PwC Global FinTech Report 2.5 Blockchain: an untapped Figure 10: Familiarit with bloc­chain technology is rewriting the FS rulebook Please describe the extent to which you are familiar with blockchain technology 4‰ Blockchain is a new technology that combines a number of 35‰ mathematical, cryptographic and economic principles in order to maintain a database between multiple participants without 3‰ the need for any third party validator or reconciliation. In simple terms, it is a secure and distributed ledger. Our insight is that blockchain represents the next evolutionary jump in business 25‰ process optimisation technology. Just as Enterprise Resource Planning (ERP) software allowed functions and entities within 2‰ a business to optimise business processes by sharing data and logic within the enterprise, blockchain will allow entire 15‰ industries to optimise business processes further by sharing data between businesses that have different or competing economic 1‰ objectives. That said, although the technology shows a lot of promise, several challenges and barriers to adoption remain. 5‰ Further, a deep understanding of blockchain and its commercial implications requires knowledge that intersects various ‰ disparate fields and this leads to some uncertainty regarding its ­ot at a famiiar Sighty famiiar ‘oderatey famiiar ›ery famiiar Etremey famiiar potential applications. tremely familiar• I feel as if I am epert on blockchain technology and how it works– Uncertain responses to the promises —ery familiar• I feel as if I have fairly complete knowledge of blockchain technology and how it works– of blockchain ˜oderately familiar• I have read or heard about blockchain technology in the news and have researched it to some degree– Compared to the other trends, blockchain ranks lower on the Slightly familiar• I have read or heard about blockchain technology in the news– agendas of survey participants. While a majority of respondents “ot at all familiar• I do not know about blockchain technology at all– (56%) recognise its importance, 57% say they are unsure or Source: ‚ƒ …oa FinTech Sur€ey 21† n A€erage a industries n Fund transfer Ž payments n ‡anˆs n A‘ Ž —‘ n Insurance unlikely to respond to this trend. This may be explained by the low level of familiarity with this new technology: 83% of respondents are at best “moderately” familiar with it and only very few consider themselves to be experts (see Figure 10). This lack of understanding may lead market participants to underestimate the potential impact of blockchain on their activities.