Bank of America (BoA) has estimated that the blockchain could become a $7 billion market, benefitting companies such as Amazon and Microsoft.
Blockchain to Benefit Nine Companies
In the analysis, BoA said that the technology would eventually be worth $7 billion, reports CNBC. However, due to the fact that the blockchain is still maturing, analysts didn’t “attempt to put a time stamp” on when this will be.
Kash Rangan, BoA research analyst, stated that the blockchain could benefit nine companies once it becomes widely adopted. These are Amazon, Microsoft, Oracle, IBM, Salesforce.com, VMware, and real estate and mortgage players such as Redfin, Zillow, and LendingTree.
In a note to clients yesterday, Rangan said:
Amazon will benefit from incremental cloud services demand from blockchain implementation, while improved supply chain tracking should make Amazon’s retail operations more efficient.
The analysis predicts that two percent of services will be used to run the technology. It put the cost at $5,000 per server, per year.
As the technology matures, more industries are turning their attention to it. A recent report from Deloitte indicates that “blockchain is closer to its breakout moment every day.” This is clear to see with how it’s being used in various sectors.
Late last month, it was reported that Austria’s tourist office was using the Ethereum blockchain for a digital ad campaign.
Walmart Embraces the Technology
Walmart is one retail company that is implementing the ledger.
Last month, the multinational company stated it was in the process of introducing a blockchain-based food traceability solution from IBM. The aim is to help the company’s suppliers adhere to food safety requirements.
Walmart has been working with IBM since 2016 to deliver solutions to the food supply chain. In its continued efforts to reduce the spread of disease in food, it revealed last month that it and fellow food giant Sam’s Club are using the blockchain to stop the spread of E.coli and other diseases in lettuce.
In a report from CNBC, green leafy suppliers have until September 30th, 2019, to comply with the new system. A letter from Walmart said:
There is no question that there is a strong public-health and business-case for enhanced food traceability.
This is just one example of where the technology is being used. Other areas include the humanitarian sector. This is noted by projects launched by the UN’s World Food Programme (WFP), which is aiding refugees through the blockchain.
Do you think the technology will become a $7 billion market? Let us know in the comments below.
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