Blockchain is one of the most discussed technologies of 2018 with least $1.3 billion invested globally in 2018, according to TechCrunch.
From banking and finance to supply chain, healthcare, and more, blockchain has the potential to disrupt many different industries. As a result, this year is expected to be a crucial stage for blockchain for enterprise that will see the leap of blockchain projects from proof-of-concept to full deployments.
With so much potential, blockchain technology is well on its way to becoming widely adopted. A recent report from McKinsey & Company, a leading management consulting firm, predicts that maturity and widespread adoption of blockchain will happen by 2021.
In fact, many signs point to the fact that the tipping point for blockchain adoption has arrived. Here are 5 signs that we believe back the predictions that blockchain is ready to go mainstream.
A recent report from Juniper Research found that 57 percent of large corporations are considering or are already in the process of deploying blockchain technology. With so much demand for blockchain talent, a shortage of blockchain developers has already emerged.
According to AngelList, blockchain job posts have tripled since 2016. In November 2017, CryptoCoin News reported that the number of blockchain-related LinkedIn job postings more than tripled in the past year.
With so many job openings and so few qualified applicants to fill these positions, companies can’t simply sit back and wait for future college graduates with the right skills. Instead, they are retraining their existing workforces for specific blockchain development functions or paying a premium to attract top-notch, experienced blockchain talent.
By the end of 2018, global spending on blockchain solutions is expected to reach $2.1 billion, according to IDC. By 2025, global revenue from enterprise blockchain applications is expected to rise from $2.5 billion to $19.9 billion.
To meet this demand, major companies are investing in blockchain. While some companies are working on creating consumer-facing applications, other companies such as IBM, Microsoft, and Oracle are launching Blockchain-as-a-Service (BaaS) platforms that companies can use to develop their own blockchain projects. These efforts include cloud services and blockchain development solutions for specific industries.
The year 2017 delivered some of the biggest cyberthreats in recent history as thousands of businesses and millions of consumers were affected by everything from cyberattacks to data breaches. As a result, centralized systems are increasingly being considered as a major security risk for businesses that manage and process transactions.
Blockchain is tamper-proof and doesn’t require the intervention of third-party services for transaction processing and verification. With cybersecurity becoming a top concern for companies across the globe, old methods of managing transactions have simply become outdated.
Companies are rapidly naming blockchain as the solution that will replace these outdated legacy systems, with the goal of using blockchain for recording and validating transactions.
The fact that a synergy between blockchain and artificial intelligence (AI) has emerged is another sign that the tipping point for blockchain adoption has arrived. Blockchain provides transparency and dramatically improves security enabling safe AI application deployment without the need for a third-party intermediary.
Given blockchain’s ability to deal with vast amounts of data, the combination of these technologies could create the foundation for Internet 3.0 according to Colin Sebastian, analyst at RW Baird.
Already, there are major examples of AI and blockchain collaboration. doc.ai, health metadata collection platform, and Neuromation, a synthetic data platform for deep learning, are two solutions that are already in production.
Government, research organizations, and companies are recognizing the urgent need to collaborate when it comes to blockchain. These organizations are now asking questions about establishing key standards for blockchain development. According to Deloitte, more than 40 consortia have been formed globally to explore blockchain and distributed ledger technology.
In addition, companies are working together to deploy open source solutions to further the development of the technology. Finally, governments are also exploring the legal implications of smart contracts and other aspects of blockchain technology in order to establish a regulatory environment for companies looking to deploy blockchain.
Despite the promising use cases for blockchain, there are still a number of obstacles that the technology will need to overcome before it truly becomes mainstream. Like many rapidly evolving technologies that have come before, blockchain’s recent adoption has far outpaced the ability of governments to issue clear guidance regarding its use. In industries where companies face a myriad of compliance concerns, there isn’t exactly a rush to get out ahead of regulators.
Blockchain also comes with high initial costs for companies looking to make the transition. Various aspects of the business, not just IT, need to be adjusted in order to successfully implement blockchain. Other concerns include the viability of proposed use cases and finally whether or not key standards for blockchain development will be established.
While blockchain could potentially offer enormous savings in terms of streamlining business processes, the urgency in making these changes is something that most businesses must strongly evaluate.
As a result, identifying and mitigating risk should be a part of the conversation when it comes to blockchain. With the right strategic implementation, blockchain could potentially become a critical component for the growth of your business.
The next several years will see blockchain move from a speculative investment to a critical business technology and now is the time to start exploring. To learn more about how blockchain is evolving and how your business can take advantage of this technology, contact us today and let’s discuss your project.
Get in touch to learn how our AI powered solutions
can solve your business problem.