In a groundbreaking analysis, Bank of America projects that the blockchain industry is on the brink of a significant upswing, poised to reach an astonishing $7 billion. The financial giant foresees widespread adoption of blockchain technology, particularly by industry leaders such as Amazon and Microsoft.
Seizing Opportunities in Decentralization
Bank of America predicts that major corporations, including tech titans like Amazon, will harness the decentralized power of blockchain to enhance their operations. According to Kash Rangan, head of the software research analysis team at Bank of America Merrill Lynch,
Amazon will benefit from incremental cloud services demand from Blockchain implementation, while improved supply chain tracking should make Amazon’s retail operations more efficient.
This strategic integration with cloud services is seen as a key driver for the anticipated growth of the blockchain market. However, the timeline for this transformation remains unspecified, highlighting the gradual nature of technological adoption.
Walmart Leads, Commercial Adoption Lags
Recent developments, such as Walmart’s exploration of blockchain for tracking food in its supply chain, underscore the technology’s potential in diverse industries. While promising, widespread commercial implementation is still in its infancy, as noted by Rangan:
Many blockchain use cases have been identified, but full products/services have not yet been built out and are not used in the production.
Despite the current developmental stage, blockchain presents unprecedented opportunities not achievable with traditional databases. Bank of America’s analysis suggests that an estimated 2% of servers will be dedicated to blockchain operations, translating to an annual cost of $5,500 per server.
A Ripple Effect Across Industries
Bank of America identifies a spectrum of companies set to benefit from the blockchain revolution. Beyond Amazon and Microsoft, Oracle, IBM, Salesforce.com, VMware, as well as real estate and mortgage giants like Redfin, Zillow, and LendingTree, are anticipated to capitalize on the transformative potential of blockchain technology.
The comprehensive list reflects the diverse applications of blockchain, with IBM already making significant strides by providing Walmart with a decentralized ledger system. As the industry continues to evolve, the synergy between established corporations and blockchain innovations is poised to shape the future of technology.
Stay tuned for further updates as the blockchain industry embarks on a path toward a projected $7 billion market.
