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BY CNA team - October 3, 2018

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Blockchain a potential US$7bil market

Firms that adopt blockchain tech into existing operations stand to benefit from a potential US$7bil market
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A new report is suggesting that internet and software firms’ businesses will actually benefit from the mass adoption of blockchain technology rather than be disrupted.

CNBC says that a Bank of America report by Kash Rangan has estimated that the total addressable market for blockchain will hit US$7bil, although there was no timeline given for when this will happen.

According to him, the potential beneficiaries, such as Amazon and Microsoft, could marry blockchain with existing cloud computing operations and improve supply chain operations.

“Amazon will benefit from incremental cloud services demand from Blockchain implementation, while improved supply chain tracking should make Amazon’s retail operations more efficient,” Rangan says, assuming that 2% of servers are used to run blockchain, at US$5,500 per server per year.

He says the blockchain technology could improve certain parts of “software as a service” by relying on “blockchain as a service” (BaaS), giving as an example Microsoft’s Azure cloud computing platform.

“BaaS on Azure offers services such as smart contracts and other third-party apps, and should benefit as use of blockchain on Azure increases,” Rangan adds.

The report noted that others that stand to benefit include Oracle, IBM, Salesforce.com, VMware, and real estate and mortgage players like Redfin, Zillow and LendingTree.

Rangan points out that the blockchain technology’s commercial viability is still unproven.

“Many blockchain use cases have been identified, but full products/services have not yet been built out and are not used in production,” he says.

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