New report highlights blockchain could add £4BN+ to Scottish GDP

by Arthur · May 22, 2023

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“Blockchain Industry in Scotland Landscape Overview” – said to be Scotland’s first report on the blockchain economy – presents a summary of Scotland’s blockchain ecosystem as well as the technology’s benefits, challenges and features.

“This is the first review of its kind of the companies, investors and impact of blockchain that can unlock new and scalable innovation opportunities for our digital economy in Scotland,” said Suzanne Sosna, Scottish Enterprise’s Director of Economic Opportunities.

“The technology is most associated with the financial sector, but we wanted to look beyond that across industries where blockchain technology may be less well-known but no less innovative, for example in education where it is used to secure qualifications.

“Scottish Enterprise will continue to support the development of blockchain technology to help business growth and innovation in Scotland.”

The report found that there are 60 blockchain-centric companies in Scotland, with the majority located in Edinburgh. These companies use blockchain to develop new products or services, for recruitment and human resources, energy and climate change, crypto trading and more. Furthermore, there are 78 Scotland-based investors, 86 managers and 33 hubs with a blockchain focus.

In terms of the key economic opportunities for blockchain in Scotland, the report points to the finance, agriculture, manufacturing, healthcare, education, fast-moving consumer goods, space technology and energy sectors as the areas that will benefit the most.

However, the main challenges to wider adoption and use of blockchain technology include regulatory uncertainty, lack of technical expertise and public perception – blockchain is often associated with cryptocurrency, which can instill negative perceptions due to its association with rogue and/or illegal activities.

Mentioned as a notable Scottish blockchain company is The Scotcoin Project. The project designed their digital cryptocurrency to facilitate blockchain transactions in Scotland; they are also using their digital currency to help Scotland’s third sector, cutting across wider society’s perception of what a crypto company is and does. Last month, DIGIT spoke to the project’s CEO, Temple Melville – who has been listed in the report as a Scottish blockchain company leader – about their mission.

The report also highlights other blockchain-oriented companies such as Glasgow-based Gigged.AI – a firm that uses artificial intelligence blockchain technology to create secure and transparent records of candidate qualifications, experience and work history for companies. The company most recently secured £1.6m in a seed round led by Edinburgh-based Par Equity.

Commenting on the report, Dominic Jennings, head of Strategic Partnerships for Deep Knowledge Analytics – the research firm which produced the report on behalf of Scottish Enterprise – said: “The use of blockchain technology can encourage growth across a range of sectors through the development of innovative and secure solutions with the potential to to significantly increase Scotland’s economic growth.

“Deep Knowledge Analytics is proud to have worked with Scottish Enterprise to produce this landmark report and to promote the future growth of the blockchain industry in Scotland.”

To read a one-page version of the report click here, and for the full 80-page report click here.

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