We all know that there is a big hype around the blockchain technology, mostly because of its numerous benefits. However, many people are new to this technology and still not able to see its real value.
According to experts, the earliest viable applications will likely appear in supply chain management – rather than financial services. A great example for this comes from Anoop Nannra, who is currently the head of the Cisco’s blockchain initiative.
As Nannra told CNBC in an interview, after 18 months, the American tech conglomerate stopped researching the potential blockchain applications in the financial sector. This, according to Nannra, is mostly “because it will take a while for the many players in the complex markets to get up to speed.” From this, it is clear that some of the earliest benefits of blockchain may appear in supply chain management instead.
The Real Benefits OF Blockchain May Not Be Right Around The Corner
However, time is definitely of big importance here, according to the analysts. Some even say that it would take another 10 years until we are able to see the benefits from blockchain. More importantly, this time frame is needed to make blockchain prevalent in supply chain management – whereas financial services have to wait 25 years.
“It’s anyone’s guess” Nannra is confident. “When you’re trying to drive a mindset shift it’s almost a generational thing,” she said.
Still, there is one financial services company named Cowen, that initiated a survey on 23 executives and experts in the field. According to the survey, experts believe that we need to wait for approximately 5.9 years before blockchain gains widespread adoption.
Meanwhile, Cisco’s studies and research has shown that blockchain may not be the best solution in a number of applications – and could instead add another layer of complexity. Despite its ability to cut costs and increase the transaction efficiency, blockchain is still not “the magical solution” to all problems that today’s applications need.
Blockchain May Work Best When There Is A Need For Process Automation
According to Mark Smith, who is the CEO of a blockchain development company named Symbiont, the blockchain technology works best when there is need for process automation. As he told CNBC, “I think supply chain is going to be the first, if not near the first, to really show the value of blockchain. There aren’t any regulatory questions in supply chain management that you have to deal with.”
So far, more than $945 million has been spent on blockchain solutions. What’s more interesting is that this number is expected to grow massively over the next few years, reaching up to $9.2 billion by 2021, according to data from the International Data Corporation (IDC) which is a well-known market intelligence firm.