Blockchain is the least mature of the six transformative
technologies tracked by Digital Orbit. Complex and largely confined
in application to the financial sector, Blockchain together with 5G
had the lowest scores in readiness, one of Digital Orbit’s two key
measures. The low scores meant that both Blockchain and 5G were
considered least likely for adoption by industry.
And yet Blockchain scored impressively on impact, Digital
Orbit’s other key measure, gauging how influential a specific
transformative technology will be on six specific industries, such
as automotive, healthcare, and manufacturing.
Blockchain’s peculiar combination of low readiness and high
impact can be attributed in part to hype. As a technology like
Blockchain rises to prominence, excitement often leads to
overinflated expectations about its potential to impact or disrupt
the status quo.
But while hype may play some role, worth noting is that both
industry participants and IHS Markit analysts were largely in
agreement that Blockchain’s impact will be significant—with the
normally more cautious IHS Markit analyst collective awarding
Blockchain with scores even higher than those from the
participatory industry group.
Industries that could benefit from Blockchain
For the IHS Markit analyst group, Blockchain’s impact will be
considerable in industries that require high data security and
integrity.
In healthcare, for example, Blockchain has the potential to
resolve many long-standing issues, including the creation of a
common health information database accessible to doctors and
providers alike, regardless of the electronic medical system
used.
In the power and energy sector, Blockchain can provide a more
efficient marketplace and reduce the chances of fraud in energy
trading and process optimization. Blockchain can also enable
automated management of the power grid, helping to protect against
fraud in grid edge transactions.
The Blockchain market today: current and projected
forecasts
The business value in 2018 of Blockchain across all industry
verticals was estimated by IHS Markit to be worth $5 billion, of
which 72% derived from the financial sector, as shown in the chart
below.
Blockchain’s connection to the financial sector stems from its
earliest days. It was the world of finance where Blockchain was
originally targeted for use, and finance has also provided to date
the largest number of proof-of-concept trials and commercial
deployments of Blockchain.
But although the financial sector could be credited for
launching blockchain into the mainstream, IHS Markit believes that
other industries will be the biggest drivers in the upcoming years.
By 2030, the Blockchain market will be worth approximately $2
trillion.
Josh Builta is senior principal analyst for transformative
technologies at IHS Markit
Posted 12 June 2019