Blockchain, also known as distributed ledger technology, is rapidly growing in the enterprise application market, according to marketing research firm Tractica. Distributed ledger technology refers to data that is distributed, verified and recorded for financial and operational transactions across a network, rather than through a central authority. Tractica reports that by 2025, revenue in this sector will reach $19.9 billion, a significant increase from the $2.5 billion worldwide revenue reported in 2016.
While distributed ledger technology may be challenging in how best to use in enterprises, there are many positives emerging in the innovative technology for uses such as creating a different and easier approaches to transaction processing, asset management, intra-organizational execution, and identity management. Research conducted by Tractica principal analyst Jessica Groopman showed that hundreds of financial institutions, over two dozen governments, and several corporations and venture capitalists have invested into blockchain startups. These investments have totaled more than a $1 billion.
“Blockchain, a technology that began with Bitcoin, is enjoying a blossoming beyond cryptocurrency and the transfer of money, to an architecture able to support many types of transactions, from logging an event, to signing a document, to voting, to allocating energy between parties, and far beyond,” says Groopman.
While blockchain is still a young and emerging development, the impact could be wide-reaching and long-lasting on various industries. Groopman names “finance, manufacturing, healthcare, energy, and insurance” as industries that can significantly benefit from blockchain technology.
Tractica’s research on blockchains and a download of the Executive Summary report can be accessed at this link, https://www.tractica.com/research/blockchain-for-enterprise-applications/.