A report from Cisco has estimated that by 2027, 10% of global GDP will likely be stored on blockchain technology.
Cisco is a US multinational technology conglomerate headquartered in San Jose, California. It has released a report highlighting the significance of blockchain technology in today’s economy.
The report also outlines how the blockchain market is expected to reach $9.7 billion by 2021.
The report takes a long-term outlook on the potential of blockchain technology. One insight provided by Cisco is that 83% of executives believe trust is the cornerstone of a digital economy.
Trust is an aspect blockchain technology can provide since it is designed to be transparent.
Cisco claims that counterfeiting costs US-based semiconductor companies an estimated $7.5 billion per year.
Blockchain is also designed to be immutable – which means it cannot be retroactively altered. This twinned with the transparency the technology brings can help reduce the amount of counterfeit cases that arise.
According to Cisco and data collected from the International Data Corporation (IDC), blockchain is paving the way for a programmable economy, which is expected to deliver efficiencies and new business value in excess of $30 trillion by 2030.
This will reportedly be primarily driven by “improved cash flow, asset provenance, and native asset creation, as well as new trust-based business models.”
However, the report does note how blockchain technology still has important challenges to overcome before it is fully adopted in the mainstream.
“First, platform standards need to be established that meet the complex needs of the enterprise. Furthermore, customers are looking for industry-specific solutions to transform their business processes,” it notes.
“Finally, interconnectivity of multiple independent blockchain networks is needed to unlock the true value of blockchain.”
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.