Finance, manufacturing, healthcare, energy, and insurance applications will expand the market for distributed ledger technology beyond cryptocurrency and into the enterprise creating a $20 billion ecosystem.
That’s a key finding from a new study by Tractica.
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According to the authors of the report, there has been much ado about blockchain, also known as distributed ledger technology: a distributed data verification technology wherein financial and operational transactions are recorded and validated across a network, rather than through a central authority.
They said the technology can be confounding as enterprises wrestle with how best to utilise it, but at the same time blockchain promises radically different approaches and efficiencies for transaction processing, asset management, intra-organisational execution, and identity management.
Tractica’s study said annual revenue for enterprise applications of blockchain will increase from $2.5 billion worldwide in 2016 to $19.9 billion by 2025. The market intelligence firm’s analysis indicates that this market will be composed of 29 key use cases that will touch at least 19 different industry sectors.
“Blockchain, a technology that began with Bitcoin, is enjoying a blossoming beyond cryptocurrency and the transfer of money, to an architecture able to support many types of transactions, from logging an event, to signing a document, to voting, to allocating energy between parties, and far beyond,” said principal analyst Jessica Groopman.
According to Groopman, in the last year alone, over a hundred financial institutions, more than two dozen governments, and countless corporations and venture capitalists have invested more than $1 billion into blockchain startups.
“But through the fog of hype,” she said, “lies the sobering reality that this is a market of extreme nascence and fragmentation. Despite significant hurdles, however, blockchain has the potential to impact a wide variety of industries, most notably finance, manufacturing, healthcare, energy, and insurance, among many others.”
Tractica’s report, “Blockchain for Enterprise Applications”, examines market trends, technology issues, key use cases, and industry players in the rapidly evolving enterprise blockchain sector. The study includes granular market sizing and revenue forecasts for 29 use cases spanning 19 industries, segmented by implementation category and world region, for the 10-year period from 2016 through 2025. The report also includes in-depth profiles of 22 key industry players. An Executive Summary of the report is available for free download on the firm’s website.