Blockchain 2030 A Look at the Future of Blockchain in Australia - April 2019
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
April 2019 Blockchain 2030 A Look at the Future of Blockchain in Australia
Report prepared by Alexandra Bratanova, Dinesh Devaraj, Joanna Horton, Claire Naughtin, Ben Kloester, Kelly Trinh, Ingo Weber and David Dawson CITATION Bratanova, A., Devaraj, D., Horton, J., Naughtin, C., Kloester, B., Trinh, K., Weber, I., Dawson, D. (2019) Blockchain 2030: A Look at the Future of Blockchain in Australia. CSIRO Data61: Brisbane, Australia. ACKNOWLEDGEMENTS We are grateful for the many individuals who kindly offered their time, expertise and resources in this project. In particular, we thank the members of CSIRO’s Data61 who kindly provided blockchain use cases for this report. We also thank the individuals who participated in the stakeholder workshop and interviews conducted as part of this project, as well as to the reviewers of the report draft including ACS Blockchain Committee members. Special thanks to Neil Alexander, Kevin Brown, Karen Cohen, Katrina Donaghy, Vincent Gramoli, Robert Hanson, Davor Miskulin, Mick Motion- Wise and Mark Staples for their constructive feedback on the draft report. We also thank Burning Glass Technologies for their assistance in navigating the online job advertisement data. Finally, we are grateful to Melissa Johnston and Dmitry Bratanov from Queensland University of Technology for their help with the design and 3D printing of the scenario model. CURRENCY CONVERSION All dollar values indicate AUD figures unless specified otherwise. AUD figures were converted from other currencies wherever it was methodologically sound to do so. Past and present conversions were done using a yearly average exchange rate for the relevant year, whereas forecast value conversions were done using 2018’s average exchange rate since November 2017. IMPORTANT DISCLAIMER CSIRO advises that the information contained in this publication comprises general statements based on scientific research. The reader is advised and needs to be aware that such information may be incomplete or unable to be used in any specific situation. No reliance or actions must therefore be made on that information without seeking prior expert professional, scientific and technical advice. To the extent permitted by law, CSIRO (including its employees and consultants) excludes all liability to any person for any consequences, including but not limited to all losses, damages, costs, expenses and any other compensation, arising directly or indirectly from using this publication (in part or in whole) and any information or material contained in it. CSIRO is committed to providing web-accessible content wherever possible. If you are having difficulties with accessing this document please contact csiroenquiries@csiro.au.
Foreword
Few technologies in recent memory have been as polarising
as blockchain, with positions divided into camps of
‘blockchain evangelists’ and ‘blockchain sceptics’. The
distributed ledger technology – originally developed for
the Bitcoin cryptocurrency – has been billed as holding the
potential to revolutionise the internet and change the very
nature of trust.
Even as the frenzy around Bitcoin has died down, blockchain has started
Yohan Ramasundara to be deployed across Australia by start-ups, government agencies and
President, ACS large corporates. Exciting start-ups like AgriDigital are deploying it for
the purpose of provenance tracking. Major financial institutions like the
Commonwealth Bank are deploying it as a trusted B2B fintech platform.
The government has created blockchains that store smart contracts for
use by businesses and individuals.
ACS’ December 2018 Blockchain Innovation – A Patent Analytics Report
outlined that blockchain patent filings have grown 140% or more each
year since 2013. Australia ranks sixth globally with 49 patent families in
blockchain, with patents divided into two broader functional categories:
• Applications – solving problems in payments and transaction
systems, financial services, business administration, and shopping
Andrew Johnson
Chief Executive and commerce.
Officer, ACS • Data processing – solving problems in encryption and security,
networking and data transmission, data manipulation, management
and interrogation.
In undertaking this body of work, we wanted to investigate our instincts
that investments in blockchain did not necessarily represent the growing
capabilities of the technology, but more the excessive hype surrounding it.
By doing this, we are applying the Gartner Hype Cycle lens, which suggests
that any new technology initially generates a massive amount of hype and
inflates expectations before almost invariably being followed by a ‘trough
of disillusionment’, where it fails to meet hyperbolic expectations.
This report has been initiated to determine whether we have entered that
trough of disillusionment, and to inform how Australia can become a world
leader, being that catalyst for blockchain to enter a plateau of productivity.
We would like to thank the Data61 Foresight team for undertaking
this investigation, and consulting with ACS and other blockchain
experts domestically and internationally through a series of interviews
and a validation workshop, to provide an evidence-based insight
into plausible futures, and inform our technology, business and
government leaders on enablers that can be enacted for Australia to
become a global leader in blockchain.
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 1
Contents
01 03
Current profile of
Australian blockchain
Introduction:
industry and skills 17
Blockchain
Blockchain activity in
beyond Bitcoin 8
Australia 18
Industry profile of blockchain
activity 19
Executive
summary 4 02 The workforce of blockchain
professionals 21
04
Overview of
blockchain 12
Why now? The evolution
of social and economic
trust 15 Future trends
shaping blockchain
Regulating blockchains 16
in Australia 24
Technological and
environmental trends 25
Economic trends 30
Geopolitical trends 32
Social trends 34
2
05 07
Conclusion 55
Future scenarios
for blockchain
application 37
Axes of critical impact
and uncertainty 39 Appendix A:
Plausible blockchain Strategic foresight
adoption scenarios 41 methodology 58
Appendix B:
06
Regulatory measures
for blockchain 60
Appendix C:
Approach used in
Strategic implications labour and industry
and actions 50 analyses 62
Australia’s competitive Appendix D:
advantage 51 High-profile use cases
The transition period 53 of blockchain in
Australia 63
References 64
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 3
Executive
summary
Blockchain technology is a distributed ledger
technology whereby a database is distributed
across numerous users, and changes to the
database are validated by consensus among the
users. While it is best known as the platform
for Bitcoin, blockchain technology can be widely
applied to improve business processes, increase
transparency, and drive the creation of new jobs
and industries.
Over the last decade, blockchain technology in Australia. For
technology has grown in instance, there are unknowns
popularity and use, and has around blockchain’s capacity to
already begun to disrupt existing work at scale while remaining
markets in Australia and around decentralised, and protect
the world. The opportunities confidentiality whilst also
blockchain presents have been being transparent. The extent
invested in, studied, explored, and to which the public will trust
considered, in almost all sectors decentralised systems is also
of the economy. Blockchain uncertain. These uncertainties
has attracted significant public raise the question: can
and private investment, and blockchain progress beyond the
introduced previously non- hype to deliver tangible, high-
existent products and services value applications and a thriving
across multiple industries. industry for Australia, or will
blockchain amount to little more
Despite its potential, there is
than a market bubble?
significant uncertainty regarding
future adoption of blockchain
4
Using the Gartner Technology Hype Cycle (see Figure 1), this report investigates plausible futures for
the adoption of blockchain technology in Australia out to 2030, with a particular focus on Australia’s
emerging blockchain industry and workforce. Using strategic foresight methodologies, it aims to identify
critical risks, challenges and opportunities for Australia’s blockchain industry and assist stakeholders in
developing informed strategic responses to these potential futures. Two specific techniques under the
umbrella of strategic foresight are employed in this report—horizon scanning and scenario planning.
These techniques are used in combination to craft and communicate a narrative about the future of
blockchain adoption in Australia.
Estimated position
of blockchain Blockchain
technology in 2018 Blockbuster
Expectations / benefits
Ozzy
Blocky
Blockchain
Superstition
Block-what?
Innovation Peak of inflated Trough of Slope of Plateau of
trigger expectations disillusionment enlightenment productivity
FIGURE 1. PLAUSIBLE FUTURE SCENARIOS FOR BLOCKCHAIN, MODELLED AGAINST THE GARTNER
TECHNOLOGY HYPE CYCLE
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 5
WHERE ARE WE AT, AND is growing interest and away from traditional institutions
WHERE ARE WE GOING? investment in blockchain and towards decentralised
as a decentralised, peer- systems? Will the blockchain
To understand the future,
to-peer solution with offer significant cost efficiency
we need to understand the
the potential to deliver compared to legacy systems?
present state of the Australian
significant cost savings. This report explores eight
blockchain industry. An analysis
While there is booming scenarios for future adoption
of 138 blockchain activities
global demand for of blockchain technology in
in Australia shows a general
blockchain developers, Australia out to 2030 (see
upwards trajectory, with
a short supply of talent Figure 2). The scenarios are
most of this activity coming
may limit future growth of designed to challenge current
from small-to-medium-sized
blockchain-related products, perspectives, define and explore
businesses in New South Wales
services and industries. key uncertainties, and provide a
and Victoria. Further analyses
common set of shared narratives
of the current state of the • Blockchain presents
for industry, government and
blockchain workforce point to a opportunities for more
community stakeholders.
clear skill gap, with demand for transparent and efficient
blockchain-related skills rapidly governance methods, FUTURE STRATEGIC
increasing, despite the limited but also increased risks IMPLICATIONS AND
supply of skilled talent from associated with scams ACTIONS
information and communication and illegal activities. The These trends and scenarios
technology domains. Asia-Pacific region holds highlight key risks, challenges
key blockchain export and opportunities for future
This report also identifies future
opportunities for Australia, blockchain adoption in Australia
trends that are likely to influence
along with increased over the coming decade. This
the development and adoption of
competition for both talent report explores the implications
blockchain in Australia over the
and technology development. of these findings for future
coming decade. These include
the following: strategic decisions concerning
• In parallel with rising
the Australian blockchain
economic inequality, trust
• Supported by increasing industry, including:
in centralised institutions is
computational power,
eroding. Many people now • Leveraging Australia’s areas
blockchain technology
have lower trust in social of competitive advantage
is becoming more
and traditional media, banks in blockchain technology
sophisticated, efficient
and governments to report by (i) developing the
and user-friendly.
the truth, protect privacy, appropriate skills mix, (ii)
However, it shows signs
and act in the interests growing the information and
of limited scalability.
of everyday people. Given communication technology
Current high levels of
this context, blockchain talent pool, (iii) addressing
energy consumption
and other decentralised the blockchain knowledge
by public blockchains
technologies may be gap, and (iv) resolving digital
with proof-of-work
increasingly preferred to infrastructure bottlenecks.
consensus mechanisms,
traditional intermediaries.
as well as broader digital • Successfully transitioning
infrastructure and cyber Australian industries and
SCENARIOS FOR
security concerns for the businesses by (i) meeting
BLOCKCHAIN
technology in general, may the regulatory challenge, (ii)
TECHNOLOGY ADOPTION
prove problematic for future assisting businesses with
IN AUSTRALIA
blockchain adoption. the transition, (iii) adopting
The trends raise key a rolling strategy approach,
• Alongside the rise of uncertainties: to what extent will (iv) developing a plan to
platform businesses and the blockchain technology advance? manage cyber security, and
‘sharing economy’, there Will social trust shift decisively
6
(v) using research and data risks that the future could hold—
to drive decision-making. as well as the opportunities
This report provides multiple that blockchain technology
views of the future of blockchain could provide for the Australian
adoption in Australia and economy—government and
the impact this could have industry can make more
on existing and emerging informed decisions that best
industries and businesses. By position the nation for decades
understanding the potential to come.
Ozzy Blocky Blockchain Blockbuster
Blockchain technology has advanced significantly, Blockchain technology has advanced to a high
High technology advancement
to become highly scalable and secure. Australia level, enabling scaled solutions at minimal cost.
has gained competitive advantages in the global Social trust has shifted away from conventional
blockchain industry, and is a world leader and institutions and toward decentralised systems.
exporter of blockchain solutions and products. Australia is a world leader in blockchain
However, domestic adoption lags as social trust is development and adoption, but there have been job
still placed largely in existing institutions. losses along the way.
Low cost efficiency High cost efficiency Low cost efficiency High cost efficiency
• High perceived costs • Cost-efficiency • Widespread use of • Low costs drive wide
have stifled domestic benefits outweigh low private blockchains, and adoption of public and
adoption. trust in blockchain some public blockchain private blockchains.
technology, with some use.
• Blockchain is both an • Blockchains are used
firms adopting private
export opportunity and a • High costs mean that for data-producing and
blockchains.
brain drain risk for the industries search for data-storing processes
Australian industry. • Mistrust among alternative distributed where relational
consumers remains ledger solutions. databases are
high. unsuitable.
Trust in existing institutions Trust in decentralised systems
Block-what? Blockchain Superstition
Blockchain technology has failed to advance and Technical problems continue to hinder blockchain
offer tangible, competitive market products. performance and scalability. However, the high
People generally do not trust decentralised degree of distrust in conventional institutions
systems, and prefer established intermediaries. spurs blockchain adoption regardless of the
‘Blockchain’ is considered just another buzzword, technology’s constraints. Low levels of blockchain
and there is little chance that the technology will core skills mean that Australia becomes an
Low technology advancement
reach the ‘plateau of productivity’ in Australia. importer of blockchain technology.
Low cost efficiency High cost efficiency Low cost efficiency High cost efficiency
• Cost of transitioning • Transition costs for • High transaction and • Despite high costs for
from legacy systems is private blockchains are transition costs for scaled blockchain
high, especially manageable. blockchain adoption. solutions, the costs of
considering low rates of • Where clear transitioning have
• Growing trust in
domestic expertise. cost-efficiency gains blockchain as an alterna- lowered due to wide
• Blockchain is not exist, blockchain tive to established adoption.
considered a viable solutions are adopted by intermediaries spurs • Private blockchain
business solution. technical and many firms to adopt solutions are the norm
management experts. private blockchains. for intra-firm operations.
FIGURE 2. PLAUSIBLE FUTURE SCENARIOS FOR BLOCKCHAIN ADOPTION IN AUSTRALIA
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 7
01 INTRODUCTION: BLOCKCHAIN BEYOND BITCOIN 8
IN BRIEF: WHAT IS
BLOCKCHAIN?
As a distributed ledger technology
(DLT), blockchain is a system of
electronic record keeping, which
is supported by a consensus-
maintaining distributed database.
Blockchains consist of sequential
records (transactions) that are
organised into groups (blocks) before
being added to the ledger. A new
block is added to the chain if it is
validated by consenting parties in the
network. The Bitcoin cryptocurrency
was the first widely adopted
implementation of a blockchain.
Since then many other blockchain
platforms have emerged offering an
ever increasing variety of features
and applications.
Blockchain has arguably 100
RELATIVE SEARCH INTEREST (100 = PEAK POPULARITY)
3D PRINTING
become the most hyped
VIRTUAL REALITY
technology of recent times 80
ARTIFICIAL INTELLIGENCE
(see Figure 3). Over the last
60 BLOCKCHAIN
decade interest in blockchain
technology has grown
40
enormously, catalysed recently
by the surge in cryptocurrency 20
prices and market capitalisation
(see Figure 4). Since these 0
spikes, new applications of 2014 2015 2016 2017 2018
blockchain technology have FIGURE 3. INTEREST IN BLOCKCHAIN COMPARED TO OTHER NEW
been developed, new industries TECHNOLOGIES BY GOOGLE USERS
Source: Google Trends
and government regulations
have emerged, and demand
300
for the blockchain engineering STELLAR
workforce has grown worldwide. 250 LITECOIN
RIPPLE
Blockchain technologies and 200
$ (BILLIONS)
ETHEREUM
systems have been investigated
150 BITCOIN
and trialled in a wide range of
industries around the world.5,6 100
There are potential applications
50
in both existing and emerging
industries7,8—from provenance, 0
2016 2017 2018
registries2 and energy trading9,10
to blockchain for courts11 FIGURE 4. MARKET CAPITALISATION OF SELECTED CRYPTOCURRENCIES
Source: Coindesk22 and RBA Exchange rates23
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 9and spacecraft systems.12 body of literature indicates position has its strengths and
Smart programmable money that investments in blockchain drawbacks; while blockchain
facilitated by distributed ledger might not necessarily represent has great potential to deliver
technology (DLT) could open the growing capabilities of the economic and social benefits,
up new horizons for global technology, but rather reflect the there are significant unknowns
trade13,14 and become the next excessive hype surrounding it. around its future development
step in the evolution of monetary This hype has also polarised the and risks to its application.
systems.15 Blockchain became discussion about blockchain’s
The Gartner Technology
a priority topic on the agenda of potential, with positions divided
Hype Cycle is often used to
international forums (e.g. World into ‘blockchain sceptics’
represent the stages of maturity
Economic Forum16) and national and ‘blockchain evangelists’.
and adoption of emerging
industry organisations (e.g. Sceptics tend to think that
technologies and applications.24
Australian Digital Commerce blockchain cannot succeed
Blockchain is currently
Association17). The analysis of or will have minimal benefits
progressing through its ‘peak
Australian blockchain activities (if not costs) to individuals,
of inflated expectations’, and
(see Chapter 3) demonstrates organisations and society in the
over the next decade could
that Australia is home to a future.21 Blockchain evangelists
transition onto its ‘plateau of
number of innovative blockchain believe blockchain will
productivity’ (see Figure 5). As
developments and has potential radically transform the global
the hype around blockchain
to grow its competitive economy for the better.16 Each
wanes, a suite of new, high-
advantage and develop a thriving
domestic blockchain industry.
Estimated position
However, blockchain technology of blockchain Blockchain
technology in 2018 Blockbuster
is still relatively immature
Expectations / benefits
Ozzy
and applications are niche.5 Blocky
Blockchain has facilitated new
cyber security attacks, scams, Blockchain
privacy concerns, market Superstition
disruption and major regulatory
Block-what?
challenges.2,5,18,19 Challenges
such as data portability, privacy Innovation
trigger
Peak of inflated
expectations
Trough of
disillusionment
Slope of
enlightenment
Plateau of
productivity
and private key security, user
savviness and safety,20 and
accuracy of data on blockchains
FIGURE 5. PLAUSIBLE FUTURE SCENARIOS FOR BLOCKCHAIN, MODELLED
are yet to be resolved. A growing AGAINST THE GARTNER TECHNOLOGY HYPE CYCLE
10value applications could begin to explore future industry and the labour force (Chapter 3).
emerge, but there are significant workforce trends and better Chapter 4 presents a horizon
uncertainties around this future understand how blockchain scan of the technological,
development and its impact on could impact the Australian environmental, economic, social
the Australian economy. economy. This report aims to and geopolitical trends likely to
assist government and industry shape the future of blockchain
Building on previous blockchain
stakeholders in navigating the adoption. Drawing on these
research conducted by
uncertainty around blockchain trends, Chapter 5 identifies a
Data61 and the Australian
and making informed strategic set of scenarios for the future of
Government,1,2 this report
responses that maximise the blockchain uptake. The report
explores plausible futures
technology’s potential. concludes with implications that
for blockchain technology
these plausible futures raise
uptake in Australia over the The report begins with a brief
for future policy and strategic
coming decade. It combines explanation of what blockchain
decision-making (Chapter 6).
qualitative strategic foresight is (Chapter 2) and a current
methods (see Appendix A) profile of blockchain activities
with quantitative analysis to in Australian industries and
WHAT’S NEW?
In early 2017, Data61 published two major strategic foresight reports on distributed ledger technology.1,2
However, the past two years have seen substantial changes in the environment for blockchain
development and adoption both globally and nationally. This report seeks to further explore plausible
futures for blockchain in the context of this changed environment. The report’s novel features include:
• A focus on blockchain labour and industry.
• An emphasis on recent events and data.
• A series of current trends likely to shape the future uptake of blockchain technology.
• A novel set of eight scenarios, derived from structured strategic foresight methodology3,4 and
exploring a 10-year time frame.
• Shaping scenarios around three axes of uncertainty determined through a horizon scan and
stakeholder consultations.
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 1102 Overview of
blockchain
Blockchains fall under the broader umbrella of distributed ledger
technologies (DLTs). DLTs are shared databases or ledgers, where
read/write access is distributed across numerous computers
(referred to as ‘nodes’ in the network). The resulting database is
stored in multiple locations, meaning that a DLT allows many nodes
to append and view the database simultaneously. By contrast, in
a centralised database, write access is granted to one person or
organisation and the database is stored centrally.1
12Blockchains are a particular type The consensus mechanism Nakamoto.27 This paper built
of DLT. At their core is a shared enforces validity to create trust upon a peer-to-peer system
database that is organised as a and a copy of the database is for consensually maintaining a
list of blocks, with the constraint distributed and synchronised distributed ledger, and provided a
that an additional block of data amongst numerous nodes. A solution to the ‘double-spending
is appended to the ledger only if falsified ledger would be detected problem’ for digital currencies
a majority of nodes ‘agree’ that and rejected by other nodes (i.e. if digital currencies are
it is valid. Agreement between as being invalid. By contrast, made up of ones and zeros, how
multiple nodes about the centralised databases are do you prevent someone from
validity of a block is derived via a updated and stored by a single duplicating and re-using these
‘consensus mechanism’, of which node, making the data subject numbers after each spend?).
there are several types. The new to tampering, falsification or Without the need for a trusted
block is cryptographically chained systems failure. Only the central intermediary (e.g. a bank), a
to the previous block that was node can confirm the validity of network of participants enforcing
added to the blockchain, which data or if it is corrupted or lost, consensus rules can verify
was chained to the block before and corrupted/lost data cannot be transactions and the integrity
it, and so on, all the way to the retrieved without a backup. of the ledger. The network was
first block (the genesis block). ‘public’, meaning that anyone
The first widely adopted
Hence the name ‘blockchain’.25,26 could participate.
blockchain was implemented in
The usefulness of blockchains Bitcoin, which was first defined
comes from their decentralising in a 2008 white paper authored
and trust-producing potential. by the pseudonymous Satoshi
Consensus mechanism: A means of
reaching a consistent state in a distributed
system, in which a majority of agents
in the system ultimately agree about a
state, provided they follow the rules of
the consensus mechanism. The rules
are transparent and reaching consensus
includes validating the proposed state.
In a proof-of-work consensus mechanism,
the valid state is selected as the one with
the most ‘work’ attached, where ‘work’
is an unforgeably costly process such
as computing the result of an arduous
mathematical puzzle.
In a proof-of-stake consensus mechanism,
agents ‘stake’ capital to partake in state
updates and are incentivised to act in the
best interests of the network. The valid
state is selected as the one with the most
votes for its validity, where votes are
granted in proportion to the ‘staked’ capital
each agent controls.
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 13In a permissioned (private) blockchain, a predefined set of privileged members, defined by the blockchain
creator, play a special role in the consensus mechanism and may have other special rights to write and/or
read to and from the blockchain.
In a private blockchain, any participation — including participating in consensus, writing to the chain, or
even reading from the chain — is controlled by a central party issuing permissions to do so.
In a permissionless (public) blockchain any full node can read and write from the chain, and participate in
the consensus process.
However, some blockchains where not everyone can participate in the consensus process are still
referred to as public (e.g. Ripple and Stellar). These could be thought of as ‘public but permissioned’.
Later implementations of which have strong (often crypto- multiple parties, who are willing
blockchains include Ethereum economically secured) guarantees to agree on certain beliefs, to
and Hyperledger Fabric and of enforcement. Different come together and coordinate
other recent platforms.26 types of blockchains represent records without needing
Many of these blockchain different trade-offs between individual trust. Blockchain also
platforms allow adopters to trust, scalability, functionality and enables new forms of distributed
deploy computer programs efficiency. For example, many opt software architecture, where
on them, called ‘smart for a private ledger over public networks of untrusted (and
contracts’. Smart contracts network participation with a sometimes even corrupted)
are computer programs that greater level of trust required for participants can securely
represent an agreement which nodes to participate.25 establish agreements on shared
is automatically executable and states for decentralised and
The unique ability of blockchains
enforceable.26 With this added transactional data without a
to establish a single, canonical
capability, second-generation central authority.
source of truth without any
blockchains have become
central authority opens up a range
versatile enough to support
of potential uses. While currency
complex real-world applications.
is the most established and best-
These include tracking goods
known example, blockchains
along supply chains or securing
can be used to maintain any kind
multi-party transactions, where,
of record of ownership (e.g. of
for example, settlement and
physical assets) in a decentralised
title transfer happen in one
manner. Blockchains could also
transaction.
be used to record, transact and
Today, the term ‘blockchain’ is transfer virtual assets. In a purely
broadly used to refer to many digital realm, actions in one
technologies that build on the sphere (e.g. an online game) can
approach originally proposed by be directly contingent on actions
Nakamoto. These technologies occurring on the blockchain.
commonly allow multiple
Many assets (e.g. shares
untrusted parties to keep shared
in a company) are virtual
records that are consistent
representations of information,
and immutable, and to append
sustained by human belief and
updates to records without the
legal frameworks that belief
need for a central authority. They
has written into existence.
do so using well-specified rules
Blockchains provide a way for
14Why now? The evolution of social and economic trust
Blockchain is fuelling a qualitative evolution from the first generation of the internet (i.e. internet of
information) to the second (i.e. internet of value).28 The internet of information enabled parties previously
unknown to each other to search, collaborate on and exchange information. The lower transaction costs
that came with the first generation reduced barriers to entry for many businesses. But these advantages
were accompanied by problems of trust between unknown parties across the globe; there was no way of
guaranteeing the identity of participants or the quality of information they provided.
Many countries are experiencing growing distrust in institutions. Indeed, in 2018, an analysis of trust in
institutions found 20 of the 28 countries (including Australia) surveyed were classified as distrusters.29 But
what is driving this loss of trust in institutions? Trust in institutions started dropping during the 2008 global
financial crisis and has continued to decline as a result of rapid globalisation and technological change, the
effects of which have not been equally shared across society.30,31 Recent scandals involving intermediaries,
including the Australian banks32 and Facebook33, have also fuelled public distrust and privacy concerns.
These problems of trust are likely to have hindered the true potential of e-commerce and other internet-
related activities. The second generation of the internet should provide better guarantees about participant
identity and information quality, enabling the effective exchange of value between otherwise distrusting
participants. DLTs, which have the ability to automate the three functions of a trusted third- party
intermediary (validating, safeguarding and preserving transactions)1, seem like a natural step in the new
stage of trust evolution.
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 15Regulating blockchains
While blockchains have been for blockchain, as blockchain is protection, as indicated at a
trialled across a wide range of a dynamic industry with adopters discussion on crypto-assets at
industries, various barriers to spanning across organisations, the at the G20 Leaders’ Summit
their implementation have been industries and jurisdictions. in Buenos Aires in November-
encountered. These include Countries are trialling different December 2018.35 For more
regulation, legal enforceability, regulatory approaches to crypto- examples of discussions on
systems compatibility and assets and blockchain in a crypto-assets and blockchain
usability.34 It is challenging to search for a balanced solution regulation, see Appendix B.36-42
develop and implement clear between innovation support
regulatory and taxation regimes and consumer and business
1603
CURRENT PROFILE OF AUSTRALIAN
BLOCKCHAIN INDUSTRY AND SKILLS
To understand the future of the blockchain industry in Australia, we
need to understand its contemporary state. At present, there are limited
data on blockchain activities in Australia, and indeed globally, making
it difficult to identify current trends. This report presents novel data
compiled from an analysis of current blockchain activities in Australia,
including organisational actions aimed at implementing or developing
blockchain innovation to yield a blockchain-related product (see Appendix
C for further details). It reflects a cross-section of 138 Australian
blockchain activities with information available in the public domain as of
August 2018.
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 17Blockchain activity in Australia
There has been an increase in ANZ,43 and Australian National capital cities, there were
Australian blockchain activities Blockchain initiative44). The some examples of regional
since 2010 (see Figure 6). Over majority of Australian blockchain blockchain activities. For
50% of activities are undertaken activities focused on a single instance, over 30 businesses
by blockchain firms and application product (50.7%), with in the Central Queensland
start-ups (e.g. PowerLedger, other activities associated with towns of Agnes Water
CivicLedger, AgriDigital and greater productisation (18.1%) and Seventeen Seventy
Shping) or larger companies or providing blockchain-related (1770) are now accepting
with active blockchain projects services (31.2%). cryptocurrency as a form of
or trials (e.g. Australia Post, payment, designed to appeal
New South Wales (NSW)
Australian Securities Exchange, to international tourists in the
had the greatest share of
and Commonwealth Bank of niche market of crypto-funded
blockchain-related activities,
Australia). Some activities travel.45 Similarly, blockchain-
followed by Victoria and
also account for a consortia related jobs are concentrated
Queensland (see Figure 7).
of organisations working on in NSW and Victoria, but this
Although the majority of
collaborative projects (e.g. the distribution has widened in
activities were recorded within
partnership of IBM, Westpac and recent years (see Figure 8).
35
NUMBER OF BLOCKCHAIN-RELATED ACTIVITIES
30
25 2015/16
20
15
NT
10 QLD
WA WA
2.9%
5 SA
0 NSW
2010 2011 2012 2013 2014 2015 2016 2017 52.6%
FIGURE 6. NUMBER OF BLOCKCHAIN ACTIVITIES IN AUSTRALIA BY ACT
STARTING YEAR VIC
47.4%
Source: Data61 Australian blockchain activities dataset
TAS
0.7% 2015/16 2017/18
2.9% 0.7%
5.8%
ACT
6.5% TAS
NT NT
SA
QLD QLD
WA OVERSEAS/ WA 9.6%
8% 42% 2.9%
UNIDENTIFIED
SA SA
WA 1.0%
NSW NSW
QLD 52.6% 44.1%
VIC ACT ACT
VIC VIC 1.5%
47.4%
NSW 40.9%
TAS TAS
33.3%
FIGURE 8. DISTRIBUTION OF
BLOCKCHAIN-RELATED JOB
FIGURE 7. NUMBER OF BLOCKCHAIN ACTIVITIES IN AUSTRALIA BY STATE ADVERTISEMENTS BY STATE AND
AND TERRITORY TERRITORY
Source: Data61 Australian blockchain activities dataset Source: Burning Glass Technologies46
18Industry profile of blockchain activity
The leading industry for blockchain activities in Australia is financial and insurance services, followed
by professional, scientific and technical services, and retail trade (see Figure 9). The dominance of
the financial and insurance services in blockchain adoption can be partly explained by the nature
of financial services, and blockchain’s application in digital currency and Bitcoin. Over half of all
blockchain activities in financial and insurance services (51%) and professional, scientific and technical
services (52%) are facilitative.
MINING
TRANSPORT, POSTAL AND WAREHOUSING
EDUCATION AND TRAINING
CONSTRUCTION
ACCOMMODATION AND FOOD SERVICES
AGRICULTURE, FORESTRY AND FISHING
ELECTRICITY, GAS, WATER AND WASTE SERVICES
PUBLIC ADMINISTRATION AND SAFETY
ARTS AND RECREATION SERVICES
INFORMATION MEDIA AND TELECOMMUNICATIONS
HEALTHCARE AND SOCIAL ASSISTANCE
RENTAL, HIRING AND REAL ESTATE SERVICES
RETAIL TRADE
PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES
FINANCIAL AND INSURANCE SERVICES
0 5 10 15 20 25 30 35 40
SHARE OF BLOCKCHAIN ACTIVITIES (%)
FIGURE 9. SHARE OF AUSTRALIAN BLOCKCHAIN ACTIVITIES BY INDUSTRY
Source: Data61 Australian blockchain activities dataset
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 19There were no examples of been undertaken by small-to- first blockchain applications
blockchain activities identified medium-sized organisations in: bonds operations,49,50 smart
in other industries such as with 1 to 200 employees (see programmable money,13 a
manufacturing, wholesale Figure 10). Indeed, a growing national blockchain system44
trade, and administrative share of start-ups in Australia and international standards,51 as
and support services. There identify with the blockchain well as industry-specific trials
could be novel opportunities industry—up from 3.4% in 2016 in energy,9 agriculture52,53 and
for blockchain application to 8.1% in 2018.47,48 the public sector.54 For a more
products and innovations to Analysis of blockchain activities detailed summary of some high-
seize a first-mover advantage also demonstrates that Australia profile use case of blockchain,
in these industries. Around 93% is home to a number of world- see Appendix D.
of blockchain activities have
7.1%
6.3%
43.3%
200+ EMPLOYEES
51-200 EMPLOYEES
11-50 EMPLOYEES
1-10 EMPLOYEES
43.3%
FIGURE 10. SHARE OF AUSTRALIAN BLOCKCHAIN ACTIVITIES BY COMPANY SIZE
Source: Data61 Australian blockchain activities dataset
20The workforce of blockchain professionals
DEMAND FOR 500
BLOCKCHAIN-RELATED
SKILLS 400
NUMBER OF BLOCKCHAIN-RELATED
Since the emergence of
JOB ADVERTISEMENTS
300
blockchain technology, the
demand for blockchain-related
200
skills has been growing
globally.55 Using online job
100
advertisement data from
Burning Glass Technologies
(see Appendix C for details 0
2015 2016 2017 2018
on methodology), Data61
analyses revealed that the FIGURE 11. NUMBER OF BLOCKCHAIN-RELATED ONLINE JOB
ADVERTISEMENTS IN AUSTRALIA
number of blockchain-related Source: Burning Glass Technologies46
job advertisements has grown
rapidly in Australia over the past
three years (see Figure 11). This
indicates an increased demand
BANKING
for workers in blockchain
in the Australian workforce. SOFTWARE PUBLISHING
Analyses of US data from online ACCOUNTING SERVICES
job advertisements shows a HIGHER EDUCATION
similar, rapid increase from 500
COMPUTER SYSTEMS DESIGN AND
job advertisements in 2014 to RELATED SERVICES
3,958 in 2017.56 The majority of ALL OTHER INDUSTRIES
Australian job openings in 2017– 0 5 10 15 20 25 30 35
18 were in computer systems NUMBER OF BLOCKCHAIN-RELATED JOB ADVERTISEMENTS
design and higher education
FIGURE 12. DEMAND FOR BLOCKCHAIN SPECIALISTS BY INDUSTRY
sectors (see Figure 12). Source: Burning Glass Technologies46
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 21The top five technical skills enterprise skills, including of blockchain-related jobs
required for blockchain-related research, communication, pay more than AUD$100,000
jobs are based on knowledge of problem solving, creativity and per year, compared to around
mathematics and programming: writing skills (see Figure 13). 45% of professional jobs (see
JavaScript, artificial intelligence, Figure 14). However, there is
The majority (97%) of
machine learning, the Internet no evidence that blockchain
blockchain jobs require at
of Things and software developers have a wage
least a bachelor’s degree. The
engineering. However, premium compared to those in
higher education qualification
analysis shows that blockchain jobs with a comparable skillset,
requirement translates to a
specialists are also required to for instance, data scientists or
wage premium for blockchain
demonstrate complementary software engineers.
professionals too. Almost 60%
JAVASCRIPT
JAVA
ARTIFICIAL INTELLIGENCE
MACHINE LEARNING
INTERNET OF THINGS
SOFTWARE ENGINEERING
BIG DATA
SOFTWARE DEVELOPMENT
PYTHON
C++
0 5 10 15 20 25 30
RESEARCH
COMMUNICATION SKILLS
PROBLEM SOLVING
CREATIVITY
WRITING
ENGLISH
PLANNING
PRESENTATION SKILLS
BUILDING EFFECTIVE RELATIONSHIPS
TROUBLESHOOTING
0 5 10 15 20 25
FIGURE 13. THE TOP 10 SPECIALISED TECHNICAL SKILLS (TOP) AND COMPLEMENTARY ENTERPRISE SKILLS
(BOTTOM) REQUIRED FOR BLOCKCHAIN-RELATED JOBS
Source: Burning Glass Technologies46
BLOCKCHAIN JOBS
PROFESSIONAL JOBS
$150,000 + $100,000 - $149,999 $75,000 - $99,999 $50,000 - $74,999
FIGURE 14. SALARY DISTRIBUTION OF JOBS IN BLOCKCHAIN AND OTHER
PROFESSIONAL JOBS
Source: Burning Glass Technologies46
Note: Professional jobs are defined as jobs requiring at least a bachelor’s degree
22SUPPLY OF BLOCKCHAIN- A lack of skilled workers with Relative to other countries
RELATED SKILLS blockchain-related skills could though, Australia accounts
impact future development and for a small proportion of ICT
The supply of blockchain-
uptake of blockchain technology graduates, with Singapore,
related skills has also increased
in Australia. Finland and New Zealand having
along with demand. According
Australia currently has around larger shares (see Figure 15).
to LinkedIn, since October
470,000 people in occupations Data from the Organisation
2013 there has been a 28-fold
using skills such as software for Economic Cooperation
increase in the number of
development, computer and Development (OECD)
people citing cryptocurrency
networking, and information Programme for International
skills on their profiles (and a
and communications technology Student Assessment also
5.5-fold increase in citing Bitcoin
(ICT) management.59 With suggests that Australian high
skills).57 But this supply is not
additional support and school students perform at a
keeping pace with demand;
training, these workers could lower level than their peers in
one analysis suggests that
arguably transfer their skills mathematics (see Figure 16).
there are 14 job openings for
every blockchain developer.58 into blockchain-related roles. Some Australian universities
(e.g. RMIT and the University
of Technology Sydney) have
SINGAPORE recently begun offering
FINLAND blockchain-related courses and
NEW ZEALAND modules, and the University of
New South Wales also plans to
AUSTRALIA
follow suit and offer two new
U.S.A
blockchain courses in 2019.62,63
U.K Despite this though, most of the
FRANCE training options for blockchain
CANADA are provided online by providers
such as Coursera, Edx and
0 2 4 6 8 10
Udemy,64-66 or single universities
SHARE OF ICT GRADUATES (%)
(e.g. University of Nicosia67).
FIGURE 15. SHARE OF TERTIARY GRADUATES WITH INFORMATION AND
COMMUNICATIONS TECHNOLOGY (ICT) QUALIFICATION BY SELECTED
COUNTRIES IN 2015
Source: UNESCO Institute of Statistics60
600
PISA MATHEMATICS SCORE
500
400
2003 2006 2009 2012 2015
JAPAN FINLAND U.S.A CANADA AUSTRALIA
FIGURE 16. PROGRAMME FOR INTERNATIONAL STUDENT ASSESSMENT
(PISA) PERFORMANCE OF HIGH SCHOOL STUDENTS IN MATHEMATICS BY
SELECTED COUNTRIES
Source: OECD data for PISA61
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 2304 FUTURE TRENDS SHAPING BLOCKCHAIN IN AUSTRALIA 24
This chapter explores the emerging trends
shaping how blockchain is adopted and applied,
and its impact on the Australian economy
over the coming decade. These trends were
informed by consultations with key industry
and government representatives, along with a
broad horizon scan of technological, economic,
environmental, social and geopolitical literature.
They draw on local, national and global examples
of patterns of change that will likely impact
blockchain adoption in the Australian economy
and economies around the world. This evidence
base was used in developing plausible future
scenarios for blockchain adoption in Australia out
to 2030 (see Chapter 5).
Technological and environmental
trends
Computing power, enabled greater processing there are other ways to continue
memory and data storage speed and memory capacity.68,69 increasing computing power and
There are predictions that this driving down costs associated
capabilities continue to
trend could taper off in the next with data processing and
grow. In line with Moore’s
decade, as further shrinking storage72-74, including emerging
law, the density of transistors of transistors becomes less off-chain storage solutions.75
in computer chips has doubled technically feasible and Growth in data storage and
every two years up to 2012 (see economically desirable.70,71 computing power could fuel
Figure 17). This has decreased However, new technological future blockchain opportunities.
the cost of computer power and developments suggest that
400,000 1,500
MILLION OF TRANSISTORS PER INTEL CHIP
COST OF COMPUTER MEMORY
COST OF COMPUTER MEMORY ($/MBYTE)
350,000
1,200
300,000 INTEL CHIP - NUMBER OF TRANSISTORS
250,000
900
200,000
600
150,000
100,000
300
50,000
0 0
1972 1978 1985 1993 1998 2003 2008 2012
FIGURE 17. NUMBER OF TRANSISTORS PER INTEL CHIP AND COST OF COMPUTER MEMORY
Source: Intel Chips Timeline (2012),68 Memory Prices (1957-2018)69
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 25Growing internet connectivity opens new avenues for blockchain, but may be limited
by digital infrastructure. Between 1993 and 2016, the global share of individuals using the internet
grew from 0.3% to 45.9%, almost half of the world’s population.76 Increased internet connectivity allows for
greater application of digital technologies, including blockchain. Availability, reliability and affordability of
internet connectivity are essential for storing, mining and validating operations in a blockchain. Australia’s
broadband network falls behind global standards; however, in 2017 its average connectivity speed placed
it 50th worldwide and ranked it in the middle of its Asia–Pacific neighbours (see Figure 18).
Blockchain technology SOUTH KOREA
is advancing. New HONG KONG
SINGAPORE
developments signal that JAPAN
scalability for blockchain TAIWAN
THAILAND
technology may be on the
NEW ZEALAND
horizon; for instance, SegWit, AUSTRALIA
an update to the Bitcoin Core VIETNAM
MALAYSIA
software, increased transaction
SRI LANKA
throughput by around 40%.78 CHINA
Throughput of new blockchain INDONESIA
INDIA
systems is also rapidly
PHILIPPINES
increasing; the Australian Red
0 5 10 15 20 25 30
Belly Blockchain79,80 can now
AVERAGE CONNECTION SPEED (MBPS)
handle 660,000 transactions
per second on 300 machines,81 FIGURE 18. AVERAGE INTERNET CONNECTION SPEED ACROSS ASIA-
compared to 2,000 transactions PACIFIC COUNTRIES IN 2017
Source: Akamai77
per second globally on the VISA
network.82 Scaling solutions
such as Lightning Network83, a 660,000
second layer operating system
on top of the blockchain, also
raise the possibility of orders- 5,000
VISA
THROUGHPUT (TRANSACTIONS PER SECOND)
of-magnitude scaling for public
4,000
blockchains while largely 4,000
retaining decentralisation.
Forfeiting some decentralisation 3,000
has also allowed for greater
2,000
scaling. For instance, 2,000
1,500
blockchains leveraging different
1,000
consensus algorithms have 1,000
been shown to handle much
7 20
greater transaction loads (see 0
BITCOIN ETHEREUM RIPPLE STELLAR ZILLIQA EOS RED BELLY
Figure 19). Further advances (2008) (2013) (2012) (2014) (2016) (2017) BLOCKCHAIN
(2017)
in blockchain software and
FIGURE 19. NUMBER OF TRANSACTIONS PER SECOND ACROSS
hardware will likely drive DIFFERENT BLOCKCHAIN SYSTEMS
adoption and innovations. Source: Blocksplain,71,84 Stellar,85 Zilliga,86 Red Belly Blockchain80 and Coincodex87
26Energy costs associated worth of copper or gold.90
with Bitcoin mining are The ‘low-hanging fruits’ of
mining energy cost reductions
skyrocketing. Despite
have already been picked, for
improvements in the energy
example, by concentrating
efficiency of Bitcoin mining
mining in regions with low
hardware,88 it still consumes
electricity prices and in close
significant amounts of energy
proximity to energy-generating
(see Figure 20),88 and all Bitcoin
facilities including hydropower
mining energy consumption
stations.91 Further efficiencies
in Iceland is comparable to
might be gained by using the
the total consumption of all
excess heat generated from
households.89 Researchers
mining computers (e.g. Bitcoin
demonstrate that between 2016
space heaters92). However,
and 2018, on average, mining
global environmental concerns
one dollar worth of crypto-
around energy consumption
assets (Bitcoin, Ethereum,
could limit future blockchain
Litecoin and Monero) took
adoption worldwide.93
more energy than it did to
conventionally mine one dollar
80
BITCOIN’S ESTIMATED ENERGY CONSUMPTION
70
60
50
(TWH PER YEAR)
40
30
20
10
0
FEB-17 AUG-17 FEB-18 AUG-18
FIGURE 20. BITCOIN’S ESTIMATED ENERGY CONSUMPTION
Source: Digiconomist94
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 273,000
AVERAGE TIME TAKEN TO CONFIRM BITCOIN
2,500
TRANSACTION (MINUTES)
2,000
1,500
1,000
500
0
AUG-2017 OCT-2017 DEC-2017 FEB-2018 APR-2018 JUN-2018
FIGURE 21. AVERAGE CONFIRMATION TIME FOR BITCOIN
Source: Blockchain95
Transaction costs on instance, in December 2017, the New protocols and crypto-
major blockchains can popularity of CryptoKitties—an economic incentives (e.g. fees,
online crypto-game that trades mining rewards, alternative
vary substantially. The
virtual collectable kittens— consensus reaching systems
time taken to confirm Bitcoin
halted the processing of 30,000 such as proof-of-stake98) may
transactions in the first six
transactions in the Ethereum improve the scalability of
months of 2018 was highly
network.96 As the slowing blockchains using proof-of-
volatile, varying from 12
hype pushes down the price of work algorithms in the future.
minutes to almost 43 hours
cryptocurrencies like Bitcoin, However, further technological
per transaction, but this has
it is estimated that miners only advancement will be required
since improved (see Figure
break-even on operating costs for blockchain technology to
21). The spikes in demand can
when the price of Bitcoin is feasibly provide high-speed and
cause network congestion and
around AUD$9,700.97 Below this low-cost transactions at scale.
slower processing times. For
price, it is unprofitable to mine.
28Cyber security is 100
a growing concern
(and opportunity) for 80
NUMBER OF DATA BREACHES
blockchain businesses.
60
The number of cyber attacks
in Australia continued to
40
rise in 2018 (see Figure
22). Blockchains are not
20
immune to this risk. In fact,
the hype around blockchain
technology, as well as its rapid 0
JAN-18 FEB-18 MAR-18 APR-18 MAY-18 JUN-18
growth, development and
FIGURE 22. NUMBER OF DATA BREACHES REPORTED UNDER THE
innovation, arguably makes
NOTIFIABLE DATA BREACHES SCHEME IN AUSTRALIA
many blockchain applications Source: Office of the Australian Information Commissioner99
an easier target for cyber
attacks. There has been a
industry worth AUD$266 million Microsoft and Apple have done
suite of reported attacks in
in annual revenue in 2018.101 for personal computing. At
recent years, including data
At the same time, the rise of present, there are no dominant
exfiltration of the wallets and
cybercriminal activity creates blockchain designs. Future
users’ keys. For instance, in
new market opportunities for dominant blockchain solutions
January 2018, Coincheck lost
cyber security firms and service will need to overcome the
roughly AUD$584 million in
providers to offer secure challenges of scalability, speed,
NEM coins, making it one of the
blockchain activity solutions.101 flexibility and interoperability.
largest losses of cryptocurrency
Once a dominant design
through a security breach.18,100
The emergence of a emerges and is widely
As blockchain technology
dominant blockchain accepted, it could serve as
matures, so too does the cyber
security risk,18 with some design could accelerate an industry standard and
future developments. reduce adoption costs through
cybercrime methods applying
When a product design acquires cumulative learning.
specifically to blockchain.
For example, a malicious over 50% of the market for a
Google Chrome plug-in mined significant period of time, it
cryptocurrency coins without is considered the ‘dominant
device users realising it.18 Some design’.102 The presence of
estimates suggest that crypto- a dominant design helps to
hacking has grown into an standardise the market, as
BLOCKCHAIN 2030: A LOOK AT THE FUTURE OF BLOCKCHAIN IN AUSTRALIA 29Economic trends
The peer-to-peer in Australia alone has grown of ICOs has shown exponential
economy is growing. from 5.1% in 2016 to 18.4% in growth from 2014 to 2018 (see
2017.103,104 The decentralised Figure 23). Increased funding for
The peer-to-peer economy is
nature of peer-to-peer blockchain could be a precursor
providing new opportunities to
economies could facilitate to innovation and adoption.
connect buyers with sellers,
uptake of future blockchain However, some researchers
and employers with employees.
solutions, and also indicates see the hype around ICOs as
Popular marketplaces such as
the preparedness of businesses analogous to a gold rush,106
Freelancer, Upwork, Kaggle,
and consumers to adopt and predict that blockchain’s
Etsy and Madeit allow people
decentralised solutions. accelerating funding growth will
to both outsource tasks and
level out in future, with investors
connect with sellers for a wide Global blockchain funding seeking real returns from
range of products and services.
is growing. All-time venture capital recipients and
The peer-to-peer marketplace
cumulative venture capital ICO issuers.
has also enabled new business
funding in blockchain has grown
models to emerge; for instance,
at an accelerated pace, up from
in transport, new app-based
AUD$1.9 million in 2012 to
mobility services like Uber,
AUD$7.6 billion as of November
Lyft and Ola have come online.
2018.105 Similarly, both the
The proportion of people aged
number and cumulative sum
14 years and older using Uber
500 30,000
CUMULATIVE ICO FUNDING
CUMULATIVE ICOS (IN AUD MILLIONS)
25,000
400 NUMBER OF ICOS
20,000
NUMBER OF ICOS
300
15,000
200
10,000
100
5,000
0 0
2014 2015 2016 2017 2018
FIGURE 23. NUMBER OF INITIAL COIN OFFERINGS (ICOS) AND CUMULATIVE ICO FUNDING
GLOBALLY (UP UNTIL NOVEMBER 2018)
Source: Coindesk ICO Tracker107
Flexible workforce arrangements are on the rise. The workforce is becoming more flexible
as emerging generations of workers increasingly demand flexible working environments.108,109 Flexible
working arrangements are also enabled by technology, with enhanced connectivity providing opportunities
for people to work as mobile, portfolio workers and earn a living based on their outputs rather than having
a fixed place of employment. The popularity of these employment models is evident from the increased
number of co-working centres,110 but also in the increasing share of part-time workers in Australia (see
Figure 24). Management of flexible working arrangements could reflect a potential use case for future
blockchain, in providing assurance around digital identity and payments for individual contractors.
30You can also read
