# Giving substance to the hype: Digital Catapult reveals strength and depth of British blockchain industry
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2019-01-05
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: UK DLT Market Report: Impact and Potential Revealed
Meta Description: Discover the potential impact of distributed ledger technologies on UK businesses with the largest market research project of its kind by Digital Catapult.
URL: https://financedigest.com/giving-substance-hype-digital-catapult-reveals-strength-depth-british-blockchain-industryhtml

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_More than 260 DLT companies surveyed in largest market mapping project of its kind to underline the potential impact of this technology on UK businesses, as Digital Catapult creates new initiative to deploy distributed ledger technologies into industry._

The most in-depth market research report to date mapping the UK’s distributed ledger technologies (DLT) landscape has revealed the potential of this nascent technology to disrupt industries across the country.

New research from Digital Catapult, the UK’s leading advanced digital innovation centre, discovered a vibrant ecosystem active across a wide range of sectors, with British companies at different stages of development and numerous industry-spanning applications to help lower costs, enable more efficient public services and improve supply chain traceability.

After a difficult start – Bitcoin’s early associations with the dark web and very few examples of DLT in use outside of cryptocurrency – the UK became [globally recognised as a leader](https://www.financedigest.com/over-100-global-leaders-pledge-to-end-deforestation-by-2030.html "Over 100 global leaders pledge to end deforestation by 2030") in DLT in 2015. During the intervening three years, [rapid changes](https://www.financedigest.com/rapidly-changing-fashion-lifestyle-is-expected-to-spur-demand-for-clothes-closets-market.html "Rapidly Changing Fashion Lifestyle Is Expected To Spur Demand For Clothes Closets Market") have seen the UK’s early lead potentially slip behind China, Singapore, Malta and the USA, countries which have been more agile in their approach to DLT pioneers.

The report shows how capturing the early promise, and smoothing out the road to success, will [push the UK back](https://www.financedigest.com/ukraine-pushes-russian-forces-back-restricts-gas-flow-to-europe.html "Ukraine pushes Russian forces back, restricts gas flow to Europe") into a leadership position. **Jeremy Silver, CEO, Digital [Catapult](https://www.financedigest.com/the-cosmetic-threads-market-to-get-catapulted-to-growth-with-digitized-innovation.html "The Cosmetic Threads Market to get catapulted to growth with digitized innovation")**, commented: “Digital Catapult is taking an active step to improve understanding of DLT in multiple sectors for the wider benefit of the UK economy. To do that, and encourage further adoption of this technology, we must dispel the myths, cut through the hype, and educate organisations outside of the financial [services sector](https://www.financedigest.com/protecting-the-uk-financial-services-sector-from-cyberattacks-now-and-in-2023.html "Protecting the UK financial services sector from cyberattacks now and in 2023") to the varied applications of DLT and how we can help them to de-risk innovation.”

The new [research report](https://www.financedigest.com/fucoidan-extract-market-research-report-2022-global-forecast-till-2028.html "Fucoidan Extract Market Research Report 2022 – Global Forecast till 2028"), ‘Blockchain in Action: State of the UK Market’, surveyed over 260 UK DLT companies, gathering concrete data on the breadth of the ecosystem for the very first time. It highlights the opportunities from adopting blockchain and other DLT, as well as identifying the [major challenges](https://www.financedigest.com/refurbished-medical-imaging-equipment-market-comprehensive-study-with-key-trends-major-drivers-and-challenges-2018-2026.html "Refurbished Medical Imaging Equipment Market: Comprehensive Study with Key Trends, Major Drivers and Challenges 2018-2026") which must be addressed if the UK is to benefit from this high-potential technology.

The report was launched alongside DLT Field Labs, a new initiative from [Digital Catapult that brings together technology](https://www.financedigest.com/the-digital-ir-revolution-how-new-technology-is-bringing-companies-and-shareholders-closer-together.html "The digital IR revolution: how new technology is bringing companies and shareholders closer together") businesses, industry partners and researchers to deploy and test the latest distributed ledger technology in real world (and close to real world) environments. DLT companies are grappling with an unclear and fragmented regulatory landscape, amid damaging preconceptions about the viability of their [sector and lack of authoritative legal](https://www.financedigest.com/what-does-good-look-like-for-legal-sector-it-security.html "What does ‘good’ look like for legal sector IT security?") advice. As such, the first DLT Field Labs will look at barriers in the [construction industry](https://www.financedigest.com/growth-of-construction-industry-is-creating-demand-for-screw-washer-market.html "Growth Of Construction Industry Is Creating Demand For Screw Washer Market") that blockchain and other DLT solutions could help to overcome.

Law [firm Mishcon de Reya has signed up as a lead](https://www.financedigest.com/prefabricated-building-system-markets-advanced-research-growth-opportunities-in-global-industry-by-2025-edited-by-leading-research-firm.html "Prefabricated Building System Market’s advanced Research & Growth Opportunities in Global Industry by 2025 Edited by Leading Research Firm") sponsor for the DLT Field Labs initiative. **Dr Alastair Moore, Head of Analytics and Machine Learning**, said: “We’re thrilled to support Digital Catapult in its exploration of the practical applications of [blockchain and other distributed ledger](https://www.financedigest.com/blockchain-a-case-for-the-general-ledger.html "BLOCKCHAIN: A CASE FOR THE GENERAL LEDGER") technologies, not just in the legal profession but throughout any number of industries where there is opportunity for impact. Our hope is that by being a part of the DLT Field Labs we can help to accelerate the use and comprehension of DLT in our industry and, ultimately, provide better advice to [enable UK DLT companies](https://www.financedigest.com/game-company-roblox-enabled-girls-sexual-exploitation-lawsuit-claims.html "Game company Roblox enabled girl’s sexual exploitation, lawsuit claims") to fulfil their potential.”

**Key findings:**

- The UK’s DLT ecosystem can be divided into four major categories: distributed ledger developers ( **13%), dApp developers (35%), [service providers](https://www.financedigest.com/unprecedented-constructive-disruption-to-drive-the-sleep-service-providers-market.html "Unprecedented, constructive disruption to drive the Sleep Service Providers Market") (37%), and centralised systems (15%).**
- DLT is not confined to the financial services [sector](https://www.financedigest.com/the-technologies-set-to-boost-the-finance-sector-in-2022.html "The technologies set to boost the finance sector in 2022") – the companies we spoke to are active across a wide range of sectors from manufacturing to the creative industries
- **38%of the companies interviewed feel that their [technology could be applied to all vertical markets](https://www.financedigest.com/medical-device-technologies-market-expectations-and-growth-trends-highlighted-until-2028.html "Medical Device Technologies Market Expectations and Growth Trends Highlighted Until 2028"), not just FinTech**

74%of DLT companies have products ready to demonstrate and are already [generating revenue](https://www.financedigest.com/digitally-projected-revenue-to-be-the-unique-selling-point-of-next-generation-centrifuge-market.html "Digitally projected revenue to be the unique selling point of Next Generation Centrifuge Market") - **80%had used personal funds to start their companies, and are often led by mature [business leaders](https://www.financedigest.com/business-leaders-flexibility-for-everyone-contributes-to-gender-equality-in-the-workplace-without-affecting-your-bottom-line.html "Business leaders: flexibility for everyone contributes to gender equality in the workplace, without affecting your bottom line") using their own money to found the company.**
- **41%had raised a traditional [seed round](https://www.financedigest.com/jetlearn-the-worlds-first-web-3-0-online-academy-for-k-12-raises-e1-2m-in-seed-round-to-launch-its-platform-in-the-uk.html "JetLearn, the world’s first Web 3.0 online academy for K-12, raises €1.2m in seed round to launch its platform in the UK") of investment**
- **25%** were not currently seeking investment
- **74%of companies expressed regulatory uncertainty as their most pressing challenge, with the irreconcilability of GDPR with permissionless, public blockchain [development and a lack of clarity around ICO regulation quoted as key](https://www.financedigest.com/automotive-actuator-market-key-manufacturers-development-trends-and-competitive-analysis-2028.html "Automotive Actuator Market Key Manufacturers, Development Trends and Competitive Analysis 2028") concerns.**
- Over half ( **54%**) of companies have struggled to open a UK [bank](https://www.financedigest.com/how-accountants-can-improve-financial-planning-and-results-through-open-banking-to-help-smes.html "How accountants can improve financial planning and results through Open Banking to help SMEs") account with several resorting to opening multiple accounts around the world
- Almost half ( **45%**) of companies consulted required additional specialist legal advice to bring their companies to fruition. Many are concerned that lawyers do not understand the intricacies of the technology and believe they have received poor advice around ICOs and [intellectual property](https://www.financedigest.com/white-bullet-releases-ad-funded-piracy-report-for-world-intellectual-property-organisation-wipo.html "White Bullet releases Ad Funded Piracy Report for World Intellectual Property Organisation (WIPO)") protection.

The report highlights a number of [case study](https://www.financedigest.com/demand-from-retail-food-and-beverages-sector-to-account-for-over-70-of-refrigerated-display-cases-sales-study.html "Demand from Retail Food and Beverages Sector to Account for over 70% of Refrigerated Display Cases Sales: Study") examples of British companies already successfully using Distributed Ledger Technologies:

**FilmChain** is a platform for collecting, tracking and settlement of [revenues generated by film](https://www.financedigest.com/box-and-carton-overwrap-films-revenue-to-exceed-us-5-9-bn-in-2019.html "Box and Carton Overwrap Films Revenue to Exceed US$ 5.9 Bn in 2019"), TV and digital video content. Powered by blockchain, it provides transparency for payment and [revenue analysis](https://www.financedigest.com/automated-liquid-handling-systems-market-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Automated Liquid Handling Systems Market Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027"). Developed in collaboration with Imperial College London, and with a grant from Innovate UK, FilmChain is currently piloting its technology with three feature films.

Founded in 2017 by Irina Albita and Maria Tanjala [filmchain.co](https://filmchain.co/)

**Blokur** has [developed a blockchain-based platform to help musicians and music companies](https://www.financedigest.com/impact-com-appoints-a-raft-of-new-business-development-representatives-as-the-technology-companys-client-roster-grows-by-more-than-50.html "impact.com appoints a raft of new Business Development Representatives as the technology company’s client roster grows by more than 50%") get paid what they should, when they should. Partnered with many of the world’s most influential artists and rights-owners, Blokur is building the most accurate source of music rights [data in the world](https://www.financedigest.com/u-s-yield-curve-inverts-after-strong-jobs-data-world-shares-mixed.html "U.S. yield curve inverts after strong jobs data; world shares mixed").

Blokur worked with Digital Catapult on a collaborative R&D project around smart contracts, and was founded in 2016 by Phil Barry [www.blokur.com](http://www.blokur.com/)


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