During my summer internship at BECO Capital, a technology-focused Venture Capital firm based in Dubai, I put together this primer on blockchain that demystifies this hyped up technology, covers key investment trends in the space both globally and regionally within the GCC*, and highlights both the barriers and enablers for wider blockchain adoption in the region. *The GCC is the Gulf Cooperation Council - comprised of the United Arab Emirates, Saudi Arabia, Kuwait, Bahrain, Qatar, and Oman.
3. 1. Blockchain 101
“...it requires a fresh realization that those who won’t be a part of the
discussion are going to be replaced.”
- Mark Smargon, Colu
4. A blockchain is a distributed database that maintains an ever-growing list of records
• A blockchain is a distributed database, or digital ledger, managed
by a peer-to-peer network that agrees on a documentation
protocol.
• “Blocks”, or records of any type of information are added to the
blockchain once validated by the network according to their
protocol. The records are permanent, verifiable and secure.
• The protocol for the Bitcoin cryptocurrency’s blockchain, for
example, is for “miners” – caretakers of the blockchain – to perform
a complex calculation that meets the network’s criteria.
• Miners can then upload a block of information (transactions in
the case of Bitcoin) to the blockchain, linked to the previous block
and to every one before it.
• Every node or miner has a copy of the system so fraudulent
information would have to be replaced on every single node, and
this becomes tougher as more blocks are added, which is the
strength of the blockchain.
What is a blockchain? Example of a blockchain formation
The Genesis
(initial) block
The main chain
Orphan blocks
A “hard fork” where the
blockchain splits into two
Source: Wikipedia; www.coinbase.com 4
Blocks are
continuously added
to the chain to form
the blockchain
5. An example: individual purchases with Bitcoin and how the blockchain is updated
5
• Joe pays Amazon
0.1 BTC for a
couch
• Transaction 2
• Transaction 3
6. As a reward for their correct
calculation, 12.5 Bitcoins are awarded
to the first miner to solve the
calculation. This is to incentivize more
individuals to mine and justify the
CAPEX of investing in the vast amount
of computing power required.
2. Joe wants to buy a piece of
furniture from Amazon, who accept
payment in Bitcoins.
1. Bitcoin operates on its own
blockchain, i.e. there is one
blockchain – a digital ledger –
devoted to recording all
transactions that occur for the
cryptocurrency Bitcoin.
3. Thousands of others around the
world also perform transactions with
Bitcoin around the same time Joe
does. These transactions are
gathered into a block of transactions.
5. Every 10 minutes, miners
compete to be the first ones to solve
the complex calculation, and verify
that their answer is correct with all
miners. If over 51% of all other
miners around the world agree, they
have the right to upload that new
block of transactions to the
blockchain.
4. This blockchain is not controlled
by one authority, like a government
entity or a bank; rather it is operated
by “miners” – individuals all around
the world whose powerful computers
perform complex mathematical
calculations to validate the
authenticity of the transactions in
each block.
7. The blockchain is updated with this
new block, and all miners receive a
new copy of the blockchain, with the
additional block.
8. If anyone wanted to reverse a
transaction or upload a false block of
transactions, they would have to (1)
alter an entire block of transactions,
(2) alter all subsequent blocks which
are linked to all previous blocks, and
(3) overwrite every single miner’s
copy of the blockchain with this false
chain. Estimates suggest that there
could be up to 100,000 Bitcoin miners
in the world, so false transactions are
virtually impossible.
Source: https://bravenewcoin.com/news/number-of-bitcoin-miners-far-higher-than-popular-estimates/
6. The blockchain emerged in 2008, as an enabler of Bitcoin
6
• The first blockchain was conceived in the midst of the 2008 financial crisis
• It was implemented in 2009 as a core component of the digital currency Bitcoin
• In October 2008, the creator of Bitcoin published a paper online describing the Bitcoin
digital currency. It was titled Bitcoin: A Peer-to-Peer Electronic Cash System, available
here
• Satoshi Nakamoto is the alias given to the unknown person or group who designed Bitcoin
and its implementation, part of which included the first concept of a blockchain database
• Nakamoto has claimed to be a man living in Japan, born on 5 April 1975, however the true
identity remains unknown to this day
• As of May 2017, Nakamoto is believed to own up to roughly one million Bitcoins, with a
value estimated at approximately $2.7 billion USD as of June 2017
• Digital currencies face the “double-spending” problem: the risk of people copying and
pasting a digital currency and spending it as much as they’d like
• A conventional solution was to use a digital central clearinghouse to track all transactions
and balances. This prevented fraud, but required a trusted third party to administer it
• Bitcoin avoided the need for a third party by publicly distributing the ledger, which
Nakamoto called the blockchain
When was it
conceived?
Who came up
with the idea?
What problem did
it originally
solve?
Source: Wikipedia
7. There are 4 key features that enable the power of blockchain
Source: http://www.mckinsey.com/industries/financial-services/our-insights/the-promise-of-blockchain
• New data on records or
transactions are only
added to a chain once all
relevant peers have
validated them
• Bitcoin’s validation
process, for example, is
having at least 51% of all
nodes (miners) validate
blocks of transactions
1
• The blockchain is
repeatedly replicated on
most or all peers on a
network, making failure
virtually impossible
• Hackers would have to
tamper with a block and all
subsequent blocks on all
nodes in the network
• Each data point in the
blockchain is registered
with a unique digital
fingerprint that cannot be
replicated. False entries
would not be accepted
• The blockchain is
secured by digital
signatures based on pairs
of cryptographic public or
private keys
• These signatures can
authenticate transactions,
data entries, and any type
of record on the
blockchain
Decentralized
validation
Redundancy Immutable storage Encryption
2 3 4
7
8. One which is adopted more slowly, and
typically has the potential to create new
foundations for global technology systems over
the longer term
Examples include:
• The industrial revolution
• Electricity
• TCP/IP which led to the World Wide Web
• The on-demand economy, e.g. Uber
• Sensors
• VR
• Blockchain
Blockchain is more a foundational technology than a disruptive one
One which attacks a traditional business model
with a lower-cost solution and overtakes
incumbent firms quickly
Examples include:
• Mobile internet
• IoT
• Advanced robotics
• The cloud
• Autonomous vehicles
• 3D printing
• Advanced materials
A disruptive technology A foundational technology
Sources:
https://hbr.org/2017/01/the-truth-about-blockchain
https://www.intelligenthq.com/technology/12-disruptive-technologies/
https://www.sigalow.com/2015/01/15/foundational-technologies/ 8
9. 2. The opportunity
“The practical consequence […is…] for the first time, a way for one Internet
user to transfer a unique piece of digital property to another Internet user, such
that the transfer is guaranteed to be safe and secure, everyone knows that the
transfer has taken place, and nobody can challenge the legitimacy of the
transfer. The consequences of this breakthrough are hard to overstate.”
- Marc Andreessen, Andreessen Horowitz
10. Blockchain has the potential to disrupt record keeping and transactions
Record keeping
• Before the blockchain, 3rd parties or mediators such
as governments or hospitals had to be entrusted
with securing official documents
• With the blockchain, records of any sort could be
permanently and securely documented, making
them immutable and inerasable
Birth certificates Title deeds to assets
Votes of any kindSmart contracts
• Before the blockchain, 3rd parties such as banks,
retail establishments and other commercial
organizations had to be entrusted with providing the
promised good or service
• This comes with inefficiencies such as high costs
and processing times, and data privacy concerns
• With the blockchain, transactions of any sort can
be made peer-to-peer, eliminating the middleman
Money transfer Organic farming
Pension plansP2P phone calls
Transactions
10
11. Blockchains can be private or public; the revolutionary impact will come from public ones
Private Public
• Fully controlled by 1 owner
• Essentially a more cost-
effective private database
• Quicker to setup but has a
single point of failure
• Example: a bank setting up
an internal blockchain to
enable it to process transfers
faster and more cost
effectively
• Controlled by 1 owner but
parts are decentralized
• Approach mixes control and
trust
• Achieves some benefits of
distributed type
• Example: a government
setting up a blockchain that
shares control with multiple
subsidiary entities
• Fully decentralized
• Has maximum potential to
establish openness and trust
• Costlier and more energy
intensive to operate
• Example: Bitcoin which is
operated through the
collaboration of thousands of
miners, without one central
node in charge
Graphic sourced from CB Insights 11
12. Public blockchains could give individuals control over their privacy again
“Imagine each of us having our own identity in a black box on the
blockchain. When you go to do a transaction, it gives away a
shred of information required to do that transaction and it collects
data. You get to keep your data and monetize it if you want, or
not. This could be the foundation of a whole new era whereby
our basic right to privacy is protected, because identity is the
foundation of freedom and it needs to be managed responsibly.”
Source: http://www.mckinsey.com/industries/high-tech/our-insights/how-blockchains-could-change-the-world 12
13. Public blockchains could enable billions of people to enter the global financial system
“Imagine all those people who have a supercomputer in their
pocket, who are connected to a network but don’t have a bank
account, because they only own a couple of pigs and a chicken.
That’s their bank account. Imagine if they could be brought in,
2 billion people, into the global financial system. What could
that do?”
Source: http://www.mckinsey.com/industries/high-tech/our-insights/how-blockchains-could-change-the-world 13
14. Blockchains could help facilitate trillions of IoT transactions
In the case of the Internet of Things, we’re going to need a
blockchain-settlement system underneath. Banks won’t be able
to settle trillions of real-time transactions between things.
Source: http://www.mckinsey.com/industries/high-tech/our-insights/how-blockchains-could-change-the-world 14
15. Smart contracts on the blockchain could automate away the people in businesses…
Source: http://www.mckinsey.com/industries/high-tech/our-insights/how-blockchains-could-change-the-world
Imagine a world where foreign aid didn’t get consumed in the
bureaucracy but went directly to the beneficiary under a smart
contract? Rather than a $60 billion car-service aggregation, why
couldn’t we have a distributed app on the blockchain that
manages all these vehicles and handles everything from
reputation to payments? Ultimately, they’ll be autonomous
vehicles moving around. Or blockchain Airbnb? This is all about
the value going to the creators of value rather than to
powerful forces that capture it. In the process, we can protect
our privacy. Privacy is a basic human right, and people who say
“It’s dead—get over it” are deeply misinformed. It’s the foundation
of a free society.
15
16. …and a human-less company already exists today
Source: https://www.nytimes.com/2016/05/22/business/dealbook/crypto-ether-bitcoin-currency.html
• The DAO, or Decentralized Autonomous Organization, is a venture capital firm founded in 2016 that has no
employees, executives, or board of directors
• It operates smart contracts on the Ethereum blockchain and invests in cryptocurrency startups
• Investment decisions are made by polling its investors
• It raised $150M in crowdfunding with the Ethereum cryptocurrency
• It was hacked and lost $50M in Ethereum
• The hack was reversed after a short period, leading to a hard fork (split) of the Ethereum blockchain
• This led to the cryptocurrency residing on the genesis (initial) block of the blockchain being called Ethereum
classic, and the newly forked cryptocurrency being called Ethereum
• This case is a glimpse into the future where our definition of a company may not necessarily need to
include human employees, and also where public blockchains enable decentralized bailouts
• Imagine what other jobs or industries could be automated away by smart contracts enabled by the blockchain
16
17. Despite this potential however, there are reasons to remain cautious
Source: https://amp-weforum-org.cdn.ampproject.org/c/amp.weforum.org/agenda/2017/07/four-reasons-to-question-the-hype-around-blockchain
We should keep an eye on the widening gap
between the claims being made about
potential DLT1 applications and the actual
roll-out of such applications
Are we sure that we either need or want a
technological fix for a decline in trust?
We should recognize that there are hard
limits to the extent to which we can sidestep
the need for trust, even in a world replete
with DLTs1
What might the unintended consequences
be if the idea took root of replacing socially
grounded methods of generating trust with
technologically distributed methods?
We should at least consider the possibility that trying to outsource trust to technology
might entail complications and side-effects that we can’t currently envisage.
1: DLT stands for Distributed Ledger Technology
17
18. 3. Market size
“We need to see more cases where central authorities are no longer a
requirement for operating a business or service.”
- William Mougayar, Virtual Capital Ventures
19. Expected Size of Global Blockchain Technology Market, USD Millions
The global blockchain market is expected to surpass $7.5Bn by 2024 with a CAGR of 57%
7,740
5,430
3,871
210
2019
1,431
CAGR: +57%
20242021 20232022
2,313
20202016
340
549
2017 2018
886
19
North America accounts for
the most revenue in the
forecast, with Europe
coming in second.
The Banking, Financial
services and Insurance
sector is the leading sector
and is forecast to maintain
this.
Private blockchains are the
leading segment in the
global market. This is
expected to continue, as is
the high growth of public
blockchains.
Source: Statista; Allied Market Research; Grand View Research
20. 4. Main players & applications
“If history is a guide, it is likely that the dominant platform over the long term
will be one that has not yet entered the market.”
- Gartner
21. Financial services firms have aggressively entered the space since 2014
Source: CB Insights Corporate Trends in Blockchain Webinar 21
22. Financial services firms are the most active corporate investors into blockchain technology
Source: CB Insights Corporate Trends in Blockchain Webinar 22
23. Legacy firms across several industries have come together as consortia to develop blockchain solutions
Source: CB Insights Corporate Trends in Blockchain Webinar
Abu Dhabi Global
Market (ADGM),
the UAE’s financial
center, joined the
R3 consortium in
May 2017
23
24. 5. M&A activity
“Thesis: riding on the prior 20 years of internet innovation, the next digital
wave will arrive much more quickly, and if we can catch it, allow society to
hang ten for much longer.”
- Yorke Rhodes, Microsoft
25. VC investment into blockchain-enabled startups is across 7 categories, currently driven by Bitcoin-related
startups
25
VC funding
into
blockchain-
related
startups
Infrastructure
(blockchain
platforms)
Financial
services
Cryptocurrency
exchanges
Cryptocurrency
payment
solutions
Wallets
Mines
Autonomous
organizations
26. Since 2012, over $1.8Bn in VC funding has gone into Bitcoin-related startups, the bulk of which, $459M, has
been on blockchain solutions
12
83
107
160
216
396
397
4591,820
Payment
processor
WalletExchangeUniversal2 Venture
Capital3
"RegTech"
(Regulation
Technology)
MiningInfrastructure1 Financial
Services
Total VC
Funding
1: Mainly comprised of blockchain infrastructure companies but also includes wallet and exchange infrastructure providers
2: Companies that offer solutions across multiple Bitcoin verticals, e.g. an exchange with a wallet supported by its own blockchain
3: A $2M Series A round for NeuFund, an autonomous VC firm based in Germany that executes smart contracts based on the Ethereum blockchain
Source: CoinDesk
VC funding into Bitcoin-related startups since 2012, USD Millions Accurate as of July 2017
26
27. 70% of this $1.8Bn, or ~$1.2Bn, went into US-based Bitcoin startups alone
45222326
172
310
1,258
Asia AfricaSouth AmericaUnited States Middle EastLatin AmericaEuropeTotal VC
Funding
North America1
1,819
1: Of the $1.258Bn invested in North America, $1.23Bn went into US-based Bitcoin startups and $26.9M into Canadian-based startups
Source: CoinDesk
VC funding into Bitcoin-related startups since 2012, USD Millions Accurate as of July 2017
27
28. 9 companies, each with funding of over $50M, represent about 50% of the total VC spend on Bitcoin startups
Source: CoinDesk
VC funding into 9 most well-funded Bitcoin-related startups since 2012, USD Millions Accurate as of July 2017
60
66
76
90
96
107
117
121
136869
21 Inc (21e6) Ripple LabsTotal funding
of 9 most
well-funded
Bitcoin
startups
R3Circle Internet
Financial
Coinbase Bitfury Digital Asset
Holdings
Blockstream Revolut
28
29. Financing rounds going into blockchain startups are happening at later stages, indicating more mature
companies
Source: CB Insights Corporate Trends in Blockchain Webinar 29
30. ICOs are becoming a more popular funding method for blockchain startups: 37% of funding came through
ICOs in Q1 2017
Source: CB Insights Corporate Trends in Blockchain Webinar 30
31. Since 2014, 16 blockchain companies have exited to an acquisition
Target Acquirer Deal specificsYear
DH Misys Acquired through CAD 4.8 Bn public-to-private LBO20171
InspiRUSSIA Qiwi Acquired for an undisclosed amount20172
Mediachain Spotify Acquired for an undisclosed amount20173
Inversiones Montepino Merlin Logistica Acquired for EUR 118.3 Mn20174
Lawnmower Coindesk Acquired for an undisclosed amount20175
Bitnet Rakuten Blockchain IP assets acquired for an undisclosed amount20166
Elevence Digital Asset Holdings Acquired for an undisclosed amount20167
Xapcash BTL Group Acquired for $147,00020169
Coinmotion Prasos Acquired for an undisclosed amount201610
Blockstack Digital Asset Holdings Acquired for an undisclosed amount201512
HashingSpace David Darling & David Burgess Acquired for an undisclosed amount201611
MezzaCap The Streetwear Acquired for EUR 300,000201513
PRO Securities Overstock.com 25% stake acquired for an undisclosed amount201514
Blockr.io Coinbase Acquired for an undisclosed amount201415
Cloudhashing HighBitCoin Merger of equals201416
#
Source: PitchBook 31
ChangeTip AirBnb Acquired for an undisclosed amount20168
33. The GCC could benefit greatly from adopting blockchain for public, private, and individual use cases
Public sector use cases in the
GCC
• Land registry database
• National ID database
• Police records
• Pension plan management & distribution
• Healthcare records (public institutions)
• Tax collection
• Sustainability tracking: fishing and farming
• Food sourcing
• Academic degree issuance (public universities)
• Charity funding (public sector)
Private sector use cases in the
GCC
• Bank ledger of transactions
• Healthcare records (private institutions)
• Supply chain management and tracking
• Academic degree issuance (private
universities)
• Smart contracts for insurance payouts
• Charity funding (private sector)
• Authentication of valuable goods
Individual use cases in the
GCC
• Digital identity storage
• A P2P money transfer service via
cryptocurrency
• Car leasing & sales
• Wills and inheritances
33
Below is our hypothesis on some of the use cases that would most benefit residents in the GCC, and our expectation of the type of blockchain that would be adopted.
Gartner expects that it would take blockchain 5-10 years to reach mainstream adoption.
NOT
EXHAUSTIVE
34. There are currently 5 startups that offer blockchain-backed services in the GCC
34
Year founded 2014 2017 2012 2014 2016
Headquarters Dubai Dubai Helsinki Kuwait Dubai
Services offered
Exchange offering right
to buy and sell Bitcoins
and Ethereum in all
GCC countries
Islamic crypto-currency
backed by physical
gold, offering ability to
buy Gold on their
exchange
Exchange offering
users to bid and ask for
Bitcoins in local
currencies around the
world
Platform for buying
Bitcoin in Kuwaiti
Dinars
Open source project
building a decentralized,
consensus-driven, P2P
blockchain-based
platform for distributed
applications
Founder/MD Ola Doudin Mohammed Khan
Nicholas & Jeremias
Kangas
Abdullah Al-Mezairee
Mohammed Alsehli &
Walid Messaoudi
35. Dubai’s Government and banks in the UAE are beginning to embrace blockchain technology
In October, the UAE’s largest lender, Emirates
NBD, said it was working with Indian bank ICICI on
a pilot project to use blockchain technology for
global remittances and trade finance.
35
Smart Dubai, a government-run entity, partnered
with IBM and ConsenSys for a plan to implement
Bitcoin database technology blockchain.
The National Bank of Abu Dhabi (NBAD) became
the first bank in the MENA region to introduce real
time, cross-border payments on the blockchain,
supported by their partnership with Ripple, a US
startup specializing in blockchain technology
Dubai Future Foundation set up the Global
Blockchain Council to explore how blockchain can
drive finance and business in the country.
Source: Inc. Arabia
36. 7 blockchain-related startups were accepted into Dubai Future Accelerators’ first 2 cohorts
Dubai Future Accelerators is an intensive 9-week program pairing the world’s most exciting technology companies with
leading government organizations to create transformational solutions. DFA announced a $33.5M deal between
government entities and their first cohort of startups to pilot their technology in Dubai.
BlockApps is a scalable Ethereum compliant platform for rapid development,
deployment and management of enterprise blockchain applications.
ConsenSys is building decentralized applications and various developer and
end-user tools for blockchain ecosystems.
Loyyal is a universal loyalty platform leveraging blockchain technology to
increase efficiency and improve engagement for commerce and beyond.
RSK Labs is the first open-source smart contract platform powered by the
Bitcoin Network.
CrossVerify provides biometric authentication in combination with blockchain
technology to create a Utility which digitally stores verified key personal
information, including AML and KYC documentation, for access by
permissioned CrossVerify customers.
Luther Systems provides blockchain technology solutions.
Shellpay is a Fin-tech company based in Shanghai. It is a recognized block-
chain company which provides the most advanced platform technology for
blockchain and a chosen partner for the Chinese government.
ConsenSys is building decentralized applications and various developer and
end-user tools for blockchain ecosystems.
Loyyal is a universal loyalty platform leveraging blockchain technology to
increase efficiency and improve engagement for commerce and beyond.
36
Blockchain related startups in Cohort 1 – Sep to Dec 2016 Blockchain related startups in Cohort 2 – Feb to Apr 2017
Source: https://dubaifutureaccelerators.com/en
37. 7. Challenges for local application
“Blockchain was not created to be financial infrastructure for old legacy
businesses.”
- Rumi Morales, CME
38. Adopting blockchain to its maximum potential in the GCC faces 3 main types of challenges
Technical Mindset Skillset
• Performance challenges: the
transaction speed, verification
process, and data limits will need
to improve for widescale adoption
• Large energy consumption: the
Bitcoin blockchain network’s
miners are attempting 450
thousand trillion solutions/second
to validate transactions
• High initial CAPEX despite cost
savings and efficiencies down the
line
• Complication of integration:
blockchain applications offer
solutions that require significant
changes to, or complete
replacement of, existing systems
• Fear of the unknown: willingness
and understanding of individuals
and organizations to get on board
with the blockchain, a complete
shift to a decentralized network, is
unclear and will take time
• Unclear regulation: national
governments have always
regulated certain activities within
an economy, such as the money
supply. If regulation remains
unsettled, this is a hurdle for true
widespread blockchain adoption
• Potential for illicit activity:
because transactions can be
anonymous and are currently
unregulated, illicit transactions can
be carried out over the blockchain
• Limited availability of talent to
develop, implement, and maintain
the blockchain
• Slower adaption of institutions
of higher education to offer
relevant course content to match
the jobs of the future
• Employee upskilling
requirement: organizations will
need to educate their employees
on how to use the blockchain to its
maximum potential
Source: https://www2.deloitte.com/nl/nl/pages/innovatie/artikelen/blockchain-technology-9-benefits-and-7-challenges.html# 38
39. As a result, 4 enablers are needed in the GCC to facilitate widespread blockchain adoption
Regulation
Education &
awareness
Adoption by major
organizations
Collaboration within
the ecosystem
• Governments and all
concerned
stakeholders need to
put forward regulations
and requirements for
operating in the space
• This will facilitate
incumbents’ and
startups’ ability to
develop business
models based on
blockchain, financial or
otherwise
• Companies and
universities will need to
educate their
employees and
students respectively
around the benefits
and uses of blockchain
• Widespread adoption
will only happen once
people understand the
benefits of, say, P2P
payments over the
blockchain versus
traditional methods
• Even when people are
more aware of
blockchain and
understand its
potential, they may be
wary of adopting or
using it
• Governments and
major organizations or
corporations can
alleviate that concern
by adopting blockchain
solutions themselves
and further cementing
its potential
• Like any mature
industry today, value
grows exponentially
once players within the
space collaborate
• The increasing
involvement of startups
in the region with
global, and potentially
regional, blockchain
consortia will be a
further enabler for their
growth and access to
knowledge, partners,
and customers
39
40. 8. Conclusion
““As with any digital transformation the paradigm is not displacement and
replacement but connectivity and recombination.”
- Leanne Kemp, Everledger
41. Blockchain has massive potential to change how we live and work in the GCC; harnessing that potential
depends on several factors
41
• Blockchain has the power to reshape the way we go about recording information and conducting transactions, through
immutable, secure, and distributed records or “blocks” that are sequentially updated to form a chain of blocks: the blockchain
• Blockchains can be private or public; the more revolutionary impact will come from public distributed blockchains, managed by
peers who secure the network and verify blocks’ authenticity
• The global market for blockchain is expected to surpass $7.5Bn by 2024, with a CAGR of 57%
• Corporations are investing heavily into exploring blockchain solutions and of those, financial services firms are the most active
• Since 2012, over $1.8Bn in VC funding has gone into Bitcoin-related startups, the bulk of which, $459M, has been on
blockchain solutions
• The GCC could benefit greatly from adopting blockchain for public, private, and individual use cases depending on the
extent to which it enables 4 critical factors: government regulation, education & awareness, adoption by major organizations, and
collaboration within the ecosystem
• There are 3 main types of challenges that could hinder blockchain adoption in the GCC, and globally: technical limitations,
mindsets of organizations that are wary about adapting to change, and a scarcity in the supply of qualified talent with the right skillset
to develop blockchain solutions
• Even if all these challenges are overcome, blockchain is still a nascent technology which is at the peak of its hype due to the
rise of Bitcoin; whether or not this will continue as it makes progress in other applications/avenues, in the GCC and
elsewhere, is yet to be seen