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Five Leading Industries will Fuel Blockchain Growth

It's already clear that most savvy industry leaders have a greater understanding of blockchain technology than was the case a couple of years ago. This stems from a surge with internal research and development, in partnership with third parties, as blockchain has the potential to be deployed in a variety of use cases.

As the number of Hyperledger pilot projects increased, so has awareness. It's improved among the project participants and elsewhere in their industries, with competitor companies beginning to consider whether they should seek to gain a competitive advantage from a blockchain deployment.

Blockchain Applications Market Development

According to the latest worldwide market study by Juniper Research, blockchain deployments will enable banks to realize savings on cross-border settlement transactions of more than $27 billion by the end of 2030, thereby reducing costs by more than 11 percent per on-chain transaction.

According to the analyst's assessment, financial services firms that integrate blockchain should achieve cost reductions in payment processing and reconciliation, and in treasury operations and compliance.

Indeed, the researchers argued that in compliance, automation of identity or money-laundering checks -- allied to a capability of the blockchain to verify the digital identity of an individual -- should enable savings of up to 50 percent of the existing costs base within a few years.


However, the researchers also cautioned that the need to parallel-run blockchain-based services with legacy IT systems would mean that savings would not be realized for several years after initial deployment, with annual cost reductions not reaching $1 billion per annum until 2024.

The market study findings identified potential savings for consumers and enterprises across a range of industries, from reduced fees for home buyers to fraud in the food export trade, where it estimated that blockchain deployments would reduce the cost of fraud by ~50 percent within 12 years.

Meanwhile, the research also assessed the extent to which thirty-four leading blockchain providers were best positioned to deliver innovative solutions and achieve significant market growth.

Outlook for Blockchain R&D Investment

The research analysis includes three Innovation Indices -- Digital Identity, Provenance, and Financial Services -- based on a quantitative and qualitative assessment of product offerings, R&D activities and future potential. In each index, Juniper discovered that IBM emerged as a market leader.

"IBM continues to demonstrate innovation and leadership across a range of verticals. Over the past 18 months, it has attracted dozens of corporate clients, with deployments now moving from proof of concept (PoC) and trial to full commercial rollout," said Dr. Windsor Holden, head of forecasting & Consultancy at Juniper Research.

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