Blockchain appears to be discerned as hype by some global executives – if understood at all.

GlobalData’s Q2 2022 Emerging Technology Trends Survey reported that 41.4% of execs responded either not knowing about blockchain’s substance or attributing it to puffery. 

The survey investigated global executives’ opinions surrounding major technology movements and whether they believed it to be substantial, puffed up, or both. Response options for the survey included “it’s all hype and no substance; the technology is hyped, but I can see a use for it; this technology will live up to all its promises; and, don’t know.”

Technology trends that were part of the survey included artificial intelligence (AI), cybersecurity, cloud computing, 5G, (IoT), augmented reality (i.e. metaverses), and blockchain. 

Blockchain had the highest percentage of respondents indicating “it’s all hype no substance,” or “don’t know” [both 20.7% respectively] from any of the surveyed sections – including augmented reality with only 11.6% marking “don’t know.”

“Blockchain has often been a poorly defined and misunderstood topic. Its association with the world of cryptocurrencies and digital assets has left it with a poor reputation among many people,” GlobalData Insurance Analyst Benjamin Hatton stated. 

A few factors seem to be inhibiting industry acceptance of the technology. Hatton told SDxCentral, “it is worth bearing in mind that many boards/executive teams are made up of middle-aged and older men, meaning that the acceptance and understanding of new technologies tends to be quite slow.”

Cryptocurrency remains a major perceptual tie to blockchain in the eyes of many, and GlobalData suggests this negative perception may be powered by the cryptocurrency value drops this year. 

Despite this misconstrued connection, blockchain uses are already being put to practice in different contexts. But “it hasn’t been helped by a lack of tangible, notable positives in the industry, despite the best intentions of a lot of significant players,” Hatton explained. 

“I think the fact that B3i has folded shows the real lack of willingness to drive blockchain forward in the industry,” he continued. 

He noted that startups and "insurtechs" like Nayms and OneDegree are looking to offer viable solutions to progress the technology, “but it seems less likely to become an industrywide thing after B3i folded."

“Although this may set back the development and implementation of blockchain in insurance, use cases will remain and continue emerging in the future,” Hatton stated in GlobalData’s release. “As regulation is gradually introduced and strengthened within the space, some firms may get the confidence in the technology they need to reconsider the power of blockchain.”