It seems rather fitting that someone named Kash would work at a bank, and it’s a fine fit indeed, as Bank of America Research Analyst Kash Rangan has a keen mind for money. In fact, based on current investment trends and data coming out of multiple research studies, the expert predicts that blockchain will grow into a $7 billion market.
This figure is based on the estimation that 2% of corporate servers will be dedicated to the utilization of blockchain technology, however, no timeframe has been set for when the figure will be reached.
With the success of the cryptocurrencies that brought us blockchain rising and falling like the tide, it is understandable if you take this news with a grain of salt. We all remember the dot com bubble, but we must also remember that even after it burst, a healthy and hearty online market made its mark on the world, you wouldn’t be reading this online article if it didn’t.
It’s true, there are no major blockchain products or services on the market just yet, but development and application of private blockchain systems are being tested by large and small companies across the globe. Walmart started using blockchain to track select produce they stock on their shelves, and has been so pleased with the efficiency of the system that they’re looking to broaden the scope. Tech companies like IBM and real estate companies like Zillow are excited for the many benefits blockchain can bring, and are already developing their own systems, while the Hong Kong Monetary Authority is working with banks across Asia to establish a blockchain based trade finance system. As we mentioned in a previous blog, even completely distinct countries are working together to investigate how blockchain will optimize their developing infrastructure. Investments in blockchain research have drastically spiked with no signs of stopping, which is what makes Bank of America so confident in their report.
The news has everyone happy, which makes sense, as everyone stands to gain from the most promising application of all: Blockchain as a Service.
You see, not all companies have the resources or talent to invest or develop their own blockchain technology, but those that do have incentive not to keep it to themselves. Microsoft, for example, has used their Azure platform to offer smart contracts and other blockchain-based apps to customers, giving smaller parties an advantage to help improve their business.
This is a huge step forward, but this is only the beginning.
Imagine if other major companies did this, acting as blockchain providers to start ups and small businesses, all while collecting a tidy profit in the process. Blockchain as a Service would open doors to SMEs who don’t have the capital to build their own networks, giving them the tools to succeed while the tech giants offering the service reap huge rewards, strengthening all enterprise and industries across the board.
We here at blockchain could not be more onboard with this model, it is a policy we seek to practice ourselves. In fact, we have been developing our own proprietary blockchain technology so the buyers and sellers and shippers who utilize our trading hub can make safe and trusted transactions.
Bank of America’s prediction may not have a date on it, but Export Portal is proud to be doing our part to make it happen sooner rather than later.