Recently, in August of 2025, the UK’s former chancellor, George Osborne, warned the UK government about how it’s trailing behind in the Blockchain development landscape.
He further stated that he’s anxious about the UK’s stance on cryptocurrency. Osborne stated that the UK has left itself out of the crypto boom. More than that, they haven’t even given a thought to adopting Blockchain technology.
Osborne said that the crypto revolution might have started (with the enactment of the US Genius Act) and will replace USD as the world’s reserve currency. The UK government’s stance will ensure the pound does not even play a supporting role in it, he further said.
But, is Blockchain development that important?
Indeed, it is. And, connecting with the right Blockchain development company can do wonders for your business!
Blockchain is more than just cryptocurrencies, but a secure, transparent, and versatile technology that powers everything from finance to supply chains and digital identity. While the UK has a growing Blockchain ecosystem, inconsistent regulations and past crashes have slowed adoption, creating both opportunities and challenges for businesses. For companies, Blockchain development promises cost savings, security, transparency, and innovation, but adoption barriers like skills gaps, financial restraints, and lack of trust remain.
Do you want to learn about it all? Let’s go!
Does Blockchain only Mean cryptocurrencies?
How popular do you think Blockchain technology is? According to Statista, the global market for Blockchain technology is expected to grow to 1 trillion USD by 2032.
So, Blockchain development is quite popular among businesses globally.
Before understanding Blockchain development, we have to know what Blockchain is!
What is Blockchain?
It is an immutable and shared distributed ledger technology that allows transaction recording and asset tracking within a network. This is done to provide a single truth source for all parties.
Do you need it broken down further?
Imagine something like this. You and your friends have a notebook where you keep track of everything you trade among yourselves. Every time someone makes a trade, they write it down in the notebook.
Once a page is full, you can’t erase any of the information. You have to shift to the next page. Everyone has a copy of this notebook. So, no one can cheat by adding or deleting information in the notebook.
This notebook is an example of Blockchain. It is a secure record that keeps track of transactions, information, or money that everyone in the network trusts.
Does Blockchain only mean cryptocurrencies?
In 1991, Blockchain technology was first introduced. Led by researchers W. Scott Stornetta and Stuart Haber, the concept of Blockchain was outlined. They wanted a system in which no one can tamper with the timestamps.
However, the launch of Bitcoin (a cryptocurrency) in 2009 popularised Blockchain technology. It was the first practical application of Blockchain.
But that doesn’t mean that Blockchain development is only about cryptocurrencies like Bitcoin. Cryptocurrencies are a subset of Blockchain technology.
Crypto protocols like Bitcoin are developed using Blockchain. Satoshi Nakamoto defined Bitcoin as an electronic cash system that is completely peer-to-peer. It simply does not require a third party. That’s exactly where the Blockchain helps.
Bitcoin uses Blockchain development as a way to record transactions or payments between parties transparently.
On the other hand, Blockchain technology can be used to record any data (not just transactions). They can include product inventories, election votes, identification information, and more.
You would be surprised to know that globally, thousands of projects are implementing Blockchain. Be it for social causes or for businesses, Blockchain is revolutionising everything.
For instance, secure voting in democratic elections can be achieved through this technology. Blockchain will make sure that there are no fraudulent voting practices.
The transparent and trackable nature of Blockchain helps eliminate the need for human counting and the chance for malicious actors to tamper with the ballots.
Hence, Blockchain is a big term, and cryptocurrencies are just a small part of it!
Why is the UK Trailing in Blockchain and what does it mean for Businesses?
Before understanding how the UK is trailing in Blockchain, let’s take a look at the Blockchain ecosystem in the UK.
- The UK has a total of 546 companies (both dormant and active) in the Blockchain industry.
- Out of these companies, 60% are in the seed stage, 20.6% are in the venture stage, and only 3% in the growth stage.
- 86.8% of these companies are into application software development, and 33.7% of them are into FinTech
To understand the current lapses, we have to understand Blockchain busts and booms in the UK market.
This technology had its ups and downs in the UK market in the 2010s.
However, in 2021, the Blockchain market broke all records. The funding surged by almost 305% (on an annual basis) and totalled around 648 million Pounds. This growth was contributed to by the rise of DeFi (Decentralised Finance) and NFTs.
In 2022, a Blockchain crash saw billions of pounds wiped out overnight. This resulted in the collapse of FTX. The interests went bankrupt, and the attention was shifted to other technologies like AI.
Despite the market fluctuations, the core idea has remained and is evolving rapidly. The applications of Blockchain have expanded. It is relevant in areas like digital ID verification and cybersecurity.
What has been the UK government’s attitude toward the regulation of Blockchain and crypto regulation in the UK?
- In 2018, the CTF (Cryptoassets Task Force) collaborated with the HMT, FCA (Financial Conduct Authority), and the BoE (Bank of England) to work together and regulate DLT (Distributed Ledger Technology) and Cryptoassets.
- In 2022, the government said that it wants to make the UK a global hub for cryptoasset investment and technology.
- In 2023, the FSMA 2023 was enacted, which gave the nod to introduce a regulatory framework for fiat-driven stablecoins and other payment systems.
- In 2024, a plan to introduce CBDC (Central Bank Digital Currency) was proposed by the BoE. Even the House of Commons Treasury Committee published a report stating the need for a CBDC.
Despite all of these efforts by the UK government, there’s still no proper implementation of the regulations which was once imagined.
In 2025, CNBC reported that around 30 Blockchain industry experts wrote an open letter to the UK’s Finance Minister Rachel Reeves, which said that the government must act now to strengthen its Blockchain ecosystem, especially the digital assets.
Although the government spokesperson commented that they are bringing cryptoassets under a framework to boost investments, growth, and customer confidence, the reality of implementation is a distant thought.
What does this mean for businesses?
This shows that the UK shows considerable promise in Blockchain development. However, it also shows inconsistencies and uncertainty.
While the ecosystem is expanding along with the government’s intention to do something about the sector, past crashes and inconsistent regulations have created some hesitation among the investors and businesses.
So, even though there are opportunities present, businesses must navigate carefully until stronger policies and clearer frameworks are in place.
It means the following things for businesses in the UK that are in this industry or businesses that are looking to invest in Blockchain technology:
- Innovation Opportunities: Sectors like cyber security, digital ID, and FinTech remain the hot spots for Blockchain development solutions.
- Cautious Investments: Market fluctuations and unclear or incomplete regulations necessitate careful risk management for businesses and investors before committing resources.
- Need for Adaptability: Businesses must remain agile and track regulatory changes to stay competitive and compliant.
How can Blockchain Development help Businesses?
Now that we know the state of Blockchain in the UK, the most important question remains.
How can Blockchain technology help businesses?
Irrespective of your business’s industry, Blockchain technology can change the way you operate, and for good!
For instance, if you are in the automotive industry, Blockchain can help you track vehicle history, streamline supply chains, and prevent fraud.
In the same way, this technology can help a business in the energy sector by allowing energy trading, transparency in billing, and improving grid management.
So, the advantages of Blockchain development for businesses are countless. But here, we will give you the top 5 benefits briefly.
1. Costs
Conventional businesses often relied on banks, notaries, and lawyers. This added huge overhead costs. Blockchain can eliminate these middlemen as it is decentralised.
For instance, the World Economic Forum in 2024 reported that 30% of the high-value real estate transactions in major cities are being carried out with the help of Blockchain. This resulted in a 15-25% cost reduction.
So, businesses can use these savings to grow and innovate.
2. Security
Cyber-attacks are a major threat to all businesses. IBM reported that the global cost of breach has skyrocketed to 4.88 million USD in 2025. This cost is even higher for the financial sector.
However, Blockchain development can completely change that. They reduce the dangers of data breaches and other financial losses. Thanks to the strong security of Blockchain, like DLT and crypto hashing, it is impossible to meddle or tamper with data.
This is very useful for businesses that deal with sensitive information, especially eCommerce, FinTech, Healthcare, and more.
3. Transparency
When it comes to customers, partners, or investors, transparency is the key to building strong relationships.
Blockchain technology’s immutable and efficient record-keeping makes sure that all the data and transactions are transparent. This can help businesses in the UK increase their reputation and attract prospects.
For instance, Blockchain development for the legal sector can be used to create records, intellectual property, and legal documents that can’t be tampered with. This will increase client trust and business efficiency.
4. Innovation
Blockchain technology is flexible and versatile. So, businesses can experiment with different services and models. Plus, tokenisation services can help businesses unlock funding opportunities and facilitate NFT or dApp development.
For businesses in the FinTech industry, Blockchain development offers the opportunity to create innovative financial products, such as lending platforms, insurance protocols, and decentralized exchanges.
5. Reach
As Blockchain technology is borderless, it allows businesses to reach a global audience and transact with them. This cannot be achieved smoothly through traditional finance.
By using cryptocurrencies, DeFi, and other Blockchain-oriented payment solutions, businesses can transact with their customers globally. This massive reach can help businesses grow quickly and expand into new markets.
What are the Flaws in Blockchain Technology?
Hence, Blockchain development offers businesses a wide range of advantages. So, the hype around Blockchain technology is pretty justified.
However, the adoption of this technology isn’t without risks and challenges.
What are the challenges with Blockchain development?
As Blockchain is an evolving concept, there are numerous challenges associated with its development. The top challenges associated with Blockchain development are a lack of adoption, a gap in skills, trust, financial resources, and interoperability.
Let’s explore these top risks and challenges in detail.
1. Adoption Absence
Blockchain technology is an ecosystem that requires broad adoption to function effectively. For instance, if a business wants to strengthen its supply chain capabilities, along with the business, the suppliers will have to adapt as well.
Due to this reason, the adoption rate is quite low for this technology. An APQC survey found that only 29% of the organizations were utilising Blockchain through proper deployment.
The challenges mainly relate to customer hesitation and the need for education from the business side. Plus, the Blockchain vendors have to face their own issues, such as limited skills, financial restraints, partner hesitation, and so on.
2. Skills Gap
Blockchain technology is a relatively new technology. Just like any emerging technology, the skills that are needed to use and develop it are in short supply.
The market of Blockchain skills has been quite competitive for the past decade. And, the difficulty of acquiring talent adds to organisations’ hesitation to adopt the technology. So, the skills gap is one of the top challenges that needs to be eliminated through proper training and initiatives.
What to do when you can’t find talent for a technology in your budget? You outsource!
Blockchain as a service (BaaS) is what you can go for. Such services will help your business reap the benefits of Blockchain without investing heavily in talent acquisition. Organisations like Oracle, Amazon Web Services (AWS), and IBM are some of the top BaaS providers.
3. Absence of Trust
You won’t adopt a technology that you don’t trust, right? So, trust remains a major driver for widespread Blockchain development and adoption. There are two aspects to this challenge.
- Businesses may not trust the technology’s security
- Businesses may not trust the parties in the Blockchain network
Every transaction in a Blockchain is supposed to be secure. This is true even though there is no central authority because the technology is decentralised.
As already discussed, the network is based on consensus algorithms. This means there is a common agreement about the status of the distributed ledger. It ensures that the truth is consistent across all parties on the Blockchain.
Despite all these, businesses are sceptical about the public Blockchain networks. They only trust the private ones where there are only known users.
Without proper regulations, businesses in the UK are unlikely to adopt it.
4. Financial Restraints
The APQC research states that finance is the fourth barrier to Blockchain development and adoption. Implementing this technology needs substantial financial resources. And, the pandemic has led businesses to tighten their budgets.
However, it’s not just the pandemic. Even in 2025, businesses are holding themselves back from using their funds to develop Blockchain systems. Why is that?
It is due to an absence of organisational awareness and understanding of the concepts related to Blockchain.
As businesses start getting aware of the benefits and workings of Blockchain technology, they will start adopting it readily.
On the other hand, vendors also face considerable challenges in financing Blockchain apps and the infrastructure needed to maintain them. These are also complemented by the intricacies of this technology.
5. Interoperability
Even if businesses adopt Blockchain technology, they develop their own systems around it. These systems have distinct rules, versions, and models. So, different Blockchain networks can’t work together as there isn’t any universal standard for communication.
This lack of interoperability makes widespread adoption of this technology daunting.
Why Blockchain Development Services Matter?
Blockchain development services are essential for businesses looking to adopt this technology. But why is it so important? Let’s discuss all that!
1. Improved Trust
This technology applies crypto algorithms and a decentralised ledger to prevent data manipulation and tampering. For businesses, it means:
- Reduced threats and fraud
- Unchangeable records
- Ability to audit in real-time
What does this do? They generate trust among the stakeholders, like partners, customers, suppliers, and regulators.
2. Operational Efficiency
Conventional systems are slow and separated. Plus, they are highly dependent upon manual operations. Blockchain development can:
- Automate through smart contracts
- Quick reconciliation
- Reduce dependency on middlemen
This can reduce costs, optimise operations, and scale solutions.
3. Transparency Improvements
All transactions in this technology are recorded in the ledger. This ledger can be accessed by all parties in the network. This improves:
- Compliance
- Customer trust
- Inter-business collaborations
4. Scalability
No matter the business size, each one of them grows. And Blockchain development services can help your business achieve considerable growth. This is done by scaling your systems along with the business growth. The Blockchain development solutions are:
- Customisable and modular
- Easy to integrate with other legacy systems
- Future-ready for further integrations
The Time to Build is now; Before the Next Boom!
Blockchain isn’t just a buzzword. It’s something that smart businesses are investing in, right now! And, Blockchain development is the need of the hour.
As the next crypto boom happens, you’ve got to be ready! The digital revolution is happening, and businesses that invest in Blockchain development today will certainly be the leaders of tomorrow.
A Blockchain system can deliver value to your business. Be it data integrity, enhanced trust, or process automations, Blockchain technology can help you with all of that. This is complemented by the rise of automation, Web3 technologies, and AI. The integration of Blockchain into business systems isn’t an option anymore; it’s a necessity.
Don’t wait for the future. What you do now will determine the future of your business. Build a trusted Blockchain system with Webskitters today and make your business cut the noise.
FAQs
1. What is Blockchain development, and why is it important for businesses today?
Blockchain development is the process of building secure, transparent, and efficient digital systems that help businesses cut costs and boost trust.
2. How can a Blockchain development company help organizations adopt secure and transparent solutions?
A Blockchain development company provides custom solutions, smart contracts, and integration services to make business operations safer and more transparent.
3. What skills should a Blockchain developer have to build reliable and scalable systems?
A Blockchain developer should be skilled in cryptography, smart contracts, distributed systems, and programming languages like Solidity or Python.
4. Is Blockchain development limited only to cryptocurrencies like Bitcoin?
No, Blockchain development goes beyond crypto and is used in supply chains, digital ID, healthcare, cybersecurity, and more.
5. Why should UK businesses invest in Blockchain development despite regulatory uncertainty?
UK businesses should invest in Blockchain development to unlock innovation, global reach, and long-term competitiveness even amid evolving regulations.
