In the past year, blockchain has become a controversial global phenomenon, with the technology perceived as either a solution for whatever ails society or “rat poison squared” as Warren Buffet describes cryptocurrencies. In 2018, enterprise blockchains are carrying commercial traffic and are moving beyond proof-of-concept demonstrations, with implementations driven primarily by cost reduction opportunities, followed by new business models that are enabled by the technology. These benefits come from replacing intermediate trust agents and implementing business rules called “smart contracts” to automate and authenticate transactions.
According to a new report from Tractica, this combination of automation and cryptography produces a variety of enterprise use cases that are attractive to a wide range of industries. The market intelligence firm forecasts that increasing adoption of enterprise blockchain will drive the global market size from $4.6 billion in 2018 to $20.3 billion by 2025.
Tractica’s analysis indicates that the top 5 industry sectors for blockchain adoption will be:
The top 10 enterprise use cases for enterprise blockchain are forecast to be:
- Trade Finance
- International Currency Transfer
- Syndicated Loans
- Post-Trade: Clearing & Settlement
- Automated Compliance
- M2M IoT Asset Management
- Crowdfunding + VC
- Supply Chain Management
- Patient Records Management
“Markets and applications ripe for blockchain are those where trust among participants is low and the need for records security and integrity is high,” says principal analyst Joe Hoffman. “New market opportunities can be created with blockchains without ever having a trusted authority other than the enterprise blockchain network, a key factor that will accelerate adoption in the years to come.”
Tractica’s report, “Blockchain for Enterprise Applications”, examines market trends, technology issues, key use cases, and industry players analyzing the evolution of enterprise blockchain from one-off projects to a general-purpose technology. The study includes granular market sizing and revenue forecasts for 29 use cases spanning 19 industries, segmented by implementation category and world region through 2025. The report also includes in-depth profiles of 39 key industry innovators. An Executive Summary of the report is available for free download on the firm’s website.