The major multinational technology from, Cisco, has released a report in which they believe the blockchain markets will be worth $9.7 billion by 2021.

The report which paints a very encouraging and positive picture of the technology as a whole mentions that, globally spending on blockchain technology is expected to reach $2.1 billion in 2018. However, even more significantly, “across the globe, industries are investigating ways to use blockchain to increase trust across their business value chains and address primary challenges around complexity, transparency, and security.”

While blockchain technology has the potential to transform the business environment, some challenges remain towards broader adoption.

These include establishing platform standards to the complex needs of the enterprise. Customers will be looking for industry-specific solutions to transform their business processes. Also, the interconnectivity of various independent blockchain networks is needed to realize the true potential of blockchain.

While technology has continued to evolve, the methods of executing business have not. Organizations today need to manage data and transactions among various untrusted parties increasingly. This creates challenges, especially concerning transparency, complexity, and security.

The report highlights the following facts:

• Counterfeiting is estimated to cost U.S based semi-conductor companies more than $7.5 billion annually.

• Suppliers in emerging markets today pay interest in receivable financing as high as 30%.

• Twenty billion IoT devices will be online by 2020, representing a significant number of attack surfaces.

To help combat such problems Cisco believes:

“Blockchain-based technologies can build a foundation for trust in the enterprise through the digitization of business processes, tokenization of assets, and codification of complex contracts. These technologies can enable business ecosystems, consisting of both internal and external partners, to securely interact and transact without human intervention and dramatically simplify operations for large enterprises.”

Throughout history institutions such as banks, governments and corporations have been the significant mitigators of managing risk and trade.

However, organizations can now use blockchain to manage risk and reduce overheads, while maximizing efficiency.

“The transformation toward an era of a programmable economy is expected to deliver efficiencies and new business value more than $3 trillion by 2030.”

As the effects of blockchain ripple through our economies, the transformation of industries that rely on centralized infrastructures will be complete.

Source