Revenue from blockchain-based platforms and services is expected to grow 50-fold over the next decade, according to data and analytics firm GlobalData. That will take it from $4 billion in 2020 to $199 billion in 2030, they predict.
While businesses have been warned of the necessity of digital transformation, they are not as quickly embracing technology as some might believe. That is mostly due to how new blockchain technology actually is.
“It is easy to forget that blockchain has not been around for long due to the massive hype surrounding it,” Nicklas Nilsson, senior analyst for Thematic Research at GlobalData said. “Businesses have been busy showboating the technology in lackluster and short-lived experiments in the last few years. Now this has given way to use cases focused on addressing actual problems, rather than just showing off, the technology can begin to rise to its true potential.”
In order for blockchain to go mainstream, the industry must focus on blockchain-as-a-service applications, which allow companies to interact with the technology and find their best uses for it without developing solutions from scratch. Those services should be easily integrated into existing core technologies.
It would also help for adherents to do a better job of explaining the technology, Nilsson explained. Provide a clear use case and measurable outcomes, he advised, citing IBM’s Food Trust network, the trade finance consortium eTradeConnect managed by the Hong Kong Monetary Authority, and the logistics and Maersk’s supply chain consortium TradeLens.
Don’t ignore such hype-heavy concepts as NFTs, DeFi and decentralized digital identities either, Nilsson concluded.
“Although these buzzwords are all awash with hype and far from mainstream adoption, they come with a powerful value proposition and a desire to transform core market infrastructure.”
