Different specialists, from financiers to software developers, discuss the future of blockchain technologies and their impact on the global economy. Very often these are just fantasies and nothing more, and that is quite comparable with the unviability of those overhyped cryptocurrencies and blockchain projects.
At the same time, an international technology conglomerate Cisco based in Silicon Valley has published a report on the development of the blockchain technology. It describes the importance of the technology and how it transforms business, and the future of the industry. Tellingly, there is quite a number of figures in the Cisco report.
We all used to think that the innovation of the blockchain technology shouldn’t be doubted, but what is behind those big words? According to a Cisco report and data from the International Data Corporation (IDC), global spending on blockchain technology in 2019 should be about $2.9 billion as companies from various industries around the world are exploring how to use the blockchain to increase their credibility and to solve problems associated with complexity, transparency and security.
According to Cisco and IDC, the blockchain industry will grow at an incredible rate, as it lays the groundwork for the development of the so-called programmable economy. According to forecasts, it should reach $ 3 trillion by 2030. According to the report, a major driving force in this revolution is associated with the growth of the API economy and the use of technologies in corporate business. Despite the development of technology, business practices via the Internet are facing new challenges. The report states:
«Today’s organizations must increasingly manage data and transactions among a large number of untrusted parties, creating business challenges around transparency, complexity, and security.»
In this context, it means that blockchain technologies must first address the following challenges: transparency, complexity and security.
In the modern world, numerous intermediaries are involved in the trading process, including brokers, financial institutions and other parties. Needless to say that such an integrated supply chain leads to a significant increase in the cost of doing business? One of the examples in the report clearly demonstrates the current situation: suppliers in emerging markets pay interest on lending up to 30%. This situation requires change like never before.
The blockchain technology solves many problems in the three above-mentioned areas, providing benefits both for enterprises and for the global economy as a whole which relies more and more on “digital support”.
«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.»
— as it is said in the report. Therefore, returning to the figures in the forecast, we can conclude that such growth is quite possible: there are no any alternative solutions yet.
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