What executives need to know about blockchain in 2018
Author: John Souza
Despite a growing amount of press surrounding the potential for blockchain to revolutionize the way virtually every industry interacts and does business, most of the predictions have been pure speculation. There’s been relatively little detail about how blockchain will impact your bottom line.
That is, until now.
A host of new forecasts put hard numbers to the potential of blockchain, and emphasize the need for enterprises to move quickly to understand how the distributed ledger technology can and will impact your business — before you miss the boat.
Here are a few of the latest data points and projections, and what you need to do about it.
1. By 2021, at least 25% of the Global 2000 will use blockchain services as a foundation for digital trust at scale. (Source: IDC FutureScape: Worldwide IT Industry 2018 Predictions)
One of the key advantages of blockchain’s distributed ledger technology is the potential to support digital trust at scale, two elements that were previously at odds. Before blockchain, you could have a small-scale trusted database but with scale came greater exposure to security risks.
But now, there’s the potential to offer both in one blockchain, leading to security of information and ownership, automated buying and selling through smart contracts, and faster settlements because of fewer intermediaries.
Blockchain ledgers and interconnected applications will continue to evolve and spread as current proof-of-concept projects expand, and as more organizations roll out their own initiatives.
What this means for you: “Early adopters will have the opportunity to establish very strong positions in the ecosystem, while slower adopters will not be entirely boxed out but should be exploring use cases,” recommends IDC.
2. The blockchain market size is expected to grow from USD 241.9 Million in 2016 to USD 7,683.7 Million by 2022, at a Compound Annual Growth Rate (CAGR) of 79.6%. (source: Markets and Markets: Blockchain Market — Global Forecast to 2022)
Huge growth is ahead for blockchain, as the technology startups and enterprises continue to test, refine, and share their results. The combination of back office efficiencies such as lower costs, greater efficiencies, reduced transaction time, and greater security, along with stand-alone business applications and Blockchain-as-a-Service, will continue to drive experimentation and adoption.
What this means for you: Blockchain is here to stay. If you’ve been waiting to see if distributed ledger technology was just a fad, the time to educate yourself and to act is now. “The year 2018 will be a crucial stage for enterprises as they make a huge leap from proof-of-concept projects to full blockchain deployments,” says IDC’s Stacey Soohoo, research manager, Customer Insights & Analysis.
3. Only 13 percent of global IT leaders have clear, current plans to roll out a blockchain application. (Source: IDG Connect: A C-Suite Guide to Blockchain)
At the end of 2017, IDG Connect interviewed 7,381 IT leaders across 48 different countries about their organization’s plan to implement blockchain technology. Despite the huge buzz, the findings showed that only 13% have clear, current plans.
While everyone’s talking about blockchain and agree it is the wave of the future, fewer are acting on that knowledge.
What this means for you: The time is now to roll out your own initiatives. Not only will any blockchain project take time and experimentation to perfect, the longer you wait, the more scarce resources (such as blockchain engineers) become.
4. The hourly pay rate for a blockchain professional ranges from $50 to more than $200. (source: CNBC)
There’s already a gap between blockchain expert supply and demand, with some experts saying there are 14 open jobs for every blockchain engineer. If the above projections hold true — and there’s no reason to think they won’t — the demand will continue to grow rapidly, resulting in even higher wages.
What this means for you: Of even more concern than a plumped-up paycheck and increase payroll costs is the very real possibility that you may not be able to find workers at all. This shortage will further delay your enterprise’s future blockchain plans, putting you further behind on the adoption curve.
If your organization is considering blockchain at all — and research shows the vast majority of enterprises are at least thinking about it — you can’t afford to delay.
John Souza is founder and CEO of Kingsland University — School of Blockchain, the world’s first accredited blockchain training program. Learn more at www.kingslanduniversity.com
