LONDON -- TechXLR8 -- The value of economic activity enabled by blockchain technology will reach US$2 trillion within the next 12 years, according to IHS Markit analyst Don Tait.
Tait, who gave a presentation during the Blockchain 360 sessions here at TechXLR8, noted that currently there is very little economic activity based on the secure distributed ledger technology, with the cryptocurrency market currently accounting for the only meaningful value -- there are more than 1,600 cryptocurrencies in operation today. (See Tools for Humanity: Tokenizing the World With Blockchain.)
But many major companies have blockchain-based applications and services in trial with a view to bringing them into commercial production soon. Tait believes it's likely that many of the world's largest companies in key verticals such as finance, automotive, defense, media, retail and health will embrace and use blockchain and, ultimately, drive significant economic value as a result, accounting for $2 trillion of blockchain-enabled economic activity by 2030. (See Blockchain: More Than a Cryptocurrency Ledger.)
Tait is not alone in thinking that blockchain will play a significant role in the global business machine, though estimates of the economic value that blockchain could deliver are understandably variable. Analyst firm Gartner predicts the value of blockchain-enabled economic activity to be
worth $176 billion by 2025 and then grow rapidly to be worth $3.1 trillion by 2030, $1.1 trillion more than IHS predictions.
Right now, the blockchain market is still very young. Tait estimates that between only 2% to 4% of blockchain products are live and commercially developed, with the rest still in trial stages. The number of commercially available products seems certain to grow, noted the analyst, as more businesses adopt and develop the technology to create more innovative products and services.
The Blockchain 360 presentations at TechXLR8 were well attended.
Tait added that as the number of companies endorsing blockchain services grows, the potential number of new applications for the technology will increase also. With ever greater numbers of blockchain products being produced to cover a wider spectrum of functions, blockchain technology looks set to be a vital economic data tool, revolutionizing the way most sectors handle, store and exchange their economic data.
Distributed ledger technology is set to play a major role in the global business ecosystem in years to come, but what needs to be done now to get the tech adopted? A Blockchain 360 panel discussion at the TechXLR8 event in London debated the issues.