US-based Cisco has issued a report that brings some interesting insights from the world of blockchain. According to the report, blockchain has the potential to hold as much as 10 percent of the world’s gross domestic product (GDP), which means that several trillion dollars worth of value could be stored on both decentralized and permissioned blockchains by 2027.
On the rise — blockchain industry
While the crypto industry keeps going up and down, blockchain technology continues to advance and could very much become the norm for many industries within a couple of years. The blockchain industry has been on the rise since its inception in 2008 and is permeating into every niche imaginable, from supply chains to copyright management. According to International Data Corporation (IDC), the market for blockchain spending will be expanding to $9.7 billion per year by 2021. This is four times what was spent in 2018, which saw $2.1 billion go towards blockchain projects.
In the opening of its report, Cisco states: “Although blockchain has the potential to transform the business landscape, important challenges to wider adoption remain. First, platform standards need to be established that meet the complex needs of the enterprise. Furthermore, customers are looking for industry-specific solutions to transform their business processes. Finally, interconnectivity of multiple independent blockchain networks is needed to unlock the true value of blockchain.”
Blockchain will bring new business value
“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,” Cisco’s report reads. The US-based giant believes that these technologies can enable business ecosystems, consisting of both internal and external partners, to securely interact and transact without human intervention and simplify operations for large enterprises.
Such programmable commerce would open up more than $3 trillion in new business value by 2030. Other interesting numbers come from IDC, which states that worldwide spending on blockchain solutions will reach nearly $2.9 billion in 2019, an increase of 88.7% from the $1.5 billion spent in 2018.
Enabling a new level of trust
The true innovation of blockchain is its ability to automate trust among the parties using it. Transactions are settled in a collective fashion and recorded on a distributed ledger, which removes the need for an established third party to create a trusted relationship. Participants can directly use the blockchain as the source of truth instead of one another. This embedded trust allows consumers, enterprises, and governments to automate how they manage any transactional relationship.
The Economist refers to this capability as the “trust machine” that will fundamentally transform the way we do business. Trust automation can dramatically simplify business processes by eliminating the need for intermediaries that were previously required to coordinate the exchange of business-critical information or assets.
The report found that apart from creating cost-reducing solutions for businesses, blockchain could be used to optimize smart cities (you can read more about this in our dedicated blog post), supply chain solutions, and the Internet of Things (IoT). To this end, Cisco is actively working with a number of ecosystem partners in order to develop “standards and tools for blockchain technology to reach its full potential in the enterprise.” Summing it up, blockchain has the potential to change the rules by automating trust, increasing transparency, and simplifying business processes. However, to unleash its full potential, it needs to be based on an established set of standards that meets the complex needs of the enterprise.
Modex, a blockchain company, offers fully integrated services designed to solve the last mile adoption problem of the blockchain. At Modex, we are able to innovate thanks to our incredible team of experts and we offer services for the entire blockchain technology ecosystem: Marketplace for Smart Contracts, community tools for developers and blockchain as database services for enterprises. In over two years, using cutting-edge technologies and with a clear strategy, Modex has evolved from the world’s first app store for blockchain into a complex ecosystem designed for developers’ needs and for enterprises looking for blockchain solutions.
Our mission is to spread and facilitate the adoption of blockchain into the society and to solve real world problems using this groundbreaking technology. Last, but not least, Modex aims to make blockchain user-friendly for every single device or person.