Cisco Says Blockchain will be $10 Billion Market by 2021
And 10% of World GDP Stored On-Chain by 2027
You want a positive story of about blockchain adoption and its mass potential? Cisco knows what it’s talking about. Blockchain is helping trust based business networks scale digital transformation. You can read their report here.
Cisco’s recently issued a report that highlights the company’s enterprise-oriented blockchain platform is really bullish about the future of this technology. So too in 2019 apparently are the likes of Facebook, Square, JP Morgan, IBM and others.
In short you might say blockchain is having an enterprise moment in 2019 with a lot of strong momentum for private blockchains and walled garden stablecoins. In the history of blockchain, we are at a pivotal moment.
Per the report and according to the International Data Corporation (IDC), global spending on blockchain technology is expected to reach around $2.9 billion in 2019 as industries everywhere investigate ways to use blockchain to increase trust and address challenges around complexity, transparency, and security.
- Efficiency of transactions
We are on the cusp of a 5G world where everything changes and what was not possible become possible with a merging of machine intelligence in a 4th industrial revolution of digital transformation levels.
The 2020s are an Era of Blockchain Adoption
Cisco suggested that blockchain has the potential to hold as much as 10 percent of the world’s GDP. This means that several trillion dollars worth of value could be stored on both decentralized and permissioned blockchains by 2027.
From accelerated internet-of-things to blockchain, to so many other accelerating technologies it’s a very exciting time for the future of technology and digital assets too. Distributed ledger technology doesn’t face the skepticism it once did, and private permissioned blockchains and their momentum seem to be outpacing public blockchains and decentralized solutions by a wide margin.
TRON and EOS can have their dApps, but the real exciting stuff is happening in the Cloud, and among global level enterprises such as Cisco, IBM, Microsoft, Alibaba, Huawei, Amazon, etc…
While AI is still a rather vague hyped term for businesses, blockchain is a bit more realistic. According to Cisco, 83% of executives believe trust is the cornerstone of the digital economy, and it’s expected that the blockchain market will reach $9.7 billion by 2021. Blockchain enables more trust, transparency and transactional efficiency.
As volatile as crypto markets are and as unscalable as public blockchains appear to be in 2019, enterprise level blockchain doesn’t have the same trajectory. And so while the crypto industry keeps experiencing ups and downs, with a turbulent market that has even seen us question ICOs and Etheruem’s dominance, blockchain technology itself continues to advance in the enterprise space with real-world applications in the here and now for industry and globally.
In the real world blockchain is an upgrade. Think of it this way. Cisco identified transparency as one of the main problems enterprises face today, especially those in global supply chains. Blockchain is thus helping to solve real world issues brands have. Even Facebook pivoting into privacy, something Apple already gets, is basically an enterprise blockchain and stablecoin play to better monetize WhatsApp P2P interactions and Facebook’s incredible reach.
Apple will likely make a more useful walled garden ecosystem in the end, but Facebook’s emphasis on blockchain is truly quite unheralded and game-breaking. Apple’s event is today March 25th, 2019.
“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 read.
Blockchain Adoption will Continue
The future perspective Cisco’s report gives is astounding. According to Cisco and data from IDC, the blockchain industry is poised to grow bigger and bigger as it lays the foundation for the era of a programmable economy that’s expected to deliver efficiencies and new business value in excess of $3 trillion by 2030. That’s not exactly the token economy, but it’s certainly a more vibrant world of digital transformation.
The recession of 2008 was devastating, it was a great recession. But from Bitcoin to Blockchain, in that adversity came the fountain of new technologies that have fundamentally alterted our collective future. The blockchain industry itself has been on the rise since its inception in 2008 and is permeating into every niche imaginable — from supply chains to copyright management. We don’t even fully realize how cryptoeconomics and blockchain is rewriting the internet and will continue to do so in the decades ahead.
Blockchain patents show the signals of the future. A rough estimate showed that US-based semiconductor companies lose over $7.5 billion each year due to counterfeiting. Blockchain helps solve this, and help solve dozens if not hundreds of other business use cases.
Cisco cites a January report from IDC, which predicts the market for blockchain spending expanding to $9.7 billion per year by 2021. I love the optimism enterprise companies are showing now in Blockchain DLT. Banks themselves need to become technology companies before technology companies like Amazon enter banking, we know JP Morgan understands this all too well.
Cisco sheds a new light on how fast blockchain will spearhead digital transformation. This isn’t some far off distant dreamy future. Cisco predicted that blockchain in just eight years from now will be highly trusted by businesses, firms, organization, institutions, governments etc as far as securing value electronically is concerned — even if digital currencies participate or not. You don’t need crypto to win for blockchain to be a new paradigm. Stablecoins could predominate, such is the advantage of enterprise and B2B type revenue streams — just as the likes of Microsoft, Tencent, Alibaba, Huawei, Amazon scale their B2B & Cloud profit margins since that’s where it counts.
- Supply Chain
- Internet of Things
- Smart Cities
Hundreds of major companies are implicated in this digital transformation fast-forward that we will experience in the next twenty years. Even Visa is rethinking how blockchain will improve the world. The Stablecoin wars of walled garden ecosystems is coming. Square crypto was recently founded. The Binance Coin (BNB) is showing how prominent it’s going to be. Every month in this world new things occur that changes the landscape of blockchain and crypto development. Altering perhaps the future of digital identity and money.
“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.”
Cisco is not alone in believing distributed ledger 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. IBM, Amazon and Alibaba too are heavily implicated. Ethereum could fail and that would be okay, other projects would live on. Blockchain tech might have to refine itself for true decentralization to take place decades from now.
Cisco however is in a unique position to see the merits and benefit of blockchian.
Blockchain Will Bring New Business Value, Automate Trust, and Improve Security
Such programmable commerce would open up more than $3 trillion in new business value, Cisco’s research found. Here you can essentially see how IoT, AI and blockchain will team up. This trinity accelerates automation and a society run by machine intelligence.
That’s always been the bottom line. AI, IoT and Blockchain together are a game changer for GDP and convenience and security, in a world where we trust even less.
Can you ‘automate trust’ in such an era of cybersecurity challenges, fraud and competing ecosystems and nations in business and technology? Is blockchain alone really that revolutionary? These are some of the questions we are about to find out in the years ahead.