Bank of America has shared its Blockchain outlook with the public, adding that it has a potential to reach $7 billion in value. The technology has the chances to benefit such companies, as Amazon and Microsoft.
3 October 2018 – The Bank of America (BoA) has estimated that Blockchain could potentially be a $7 billion market. The banking giant claimed that Blockchain could provide a major boost to corporate companies such as Amazon and Microsoft.
Blockchain Can be Highly Beneficial for Corporate Firms
BoA’s analysts did not provide an exact time period for the industry becoming a major multi-billion dollar market. Instead, they reportedly based their analysis on a rough figure that percent of corporate servers would be used to run Blockchain at a cost of $5,500 on a yearly basis.
BoA research analyst Kash Rangan stated that the technology is a great fit for some of the global largest corporations. He explained:
"Amazon will benefit from incremental cloud services demand from Blockchain implementation, while improved supply chain tracking should make Amazon's retail operations more efficient."
Rangan further highlighted that while many potential use cases for Blockchain have been widely recognized, “full products/services have not yet been built out and are not used in production." This leaves the technology’s capacity to bring real-world capital is still unproven.
Rangan stated that the innovation of distributed ledger systems could upgrade so-called "software as a service" (SaaS) models to the next level. It is possible via executing "blockchain as a service” (BaaS). Rangan singled out the Blockchain-based Azure platform as an example, adding:
"BaaS on Azure offers services such as smart contracts and other third-party apps, and should benefit as the use of blockchain on Azure increases."
IBM Blockchain Initiatives
BoA also included IBM, Oracle, VMware and Salesforce.com to a list of other high-profile beneficiaries that can take advantages of Blockchain technology. He also mentioned a number of the major players from the real estate and mortgage industries, such as Redfin, Zillow, and LendingTree.
It is worth to note that many of the firms that were recognized by the bank have already major forays into the Blockchain space. The new data published in August outlined that IBM is competing with Chinese e-commerce company Alibaba for the top spot on the list ranking global entities by the number of Blockchain-linked patents filed by them.
This summer, IBM has reportedly applied for a Blockchain patent. The patent is aiming to protect the method of the development of transaction data identifiers that are based on nodes.
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