Technology | Media | Telecommunications

Monday, May 25, 2020

Exploring the Enterprise Blockchain Multiverse of Apps

The internet continues to fuel the Global Networked Economy as more innovators develop and deploy their digital business offerings. Global trade will be enhanced by trusted online entities that ensure their peer-to-peer network transactions are secure and verifiable.

Frost & Sullivan has completed a worldwide market study of a blockchain-enabled world, laying out a long-range view of potential industry impacts as IT vendors race to build the foundations of the next-generation internet.

Blockchain Applications Market Development

"Existing IT systems are not fit-for-purpose when it comes to addressing the most pressing systemic problems of our time. Enterprises are being forced to adapt to complex structural change as the technology industry undergoes a paradigm shift that undermines long-held assumptions," said Maya Cotton, industry analyst at Frost & Sullivan.

According to their assessment, all organizations and institutions will be challenged to keep track of the moving pieces and identify the ecosystem levers to push that will ensure their near-term sustainability and long-term relevance.

Standard models of platform use and digital business service use are giving way to strategic blockchain projects and collaborations among unique sets of industry ecosystem players that pursue distributed ledger applications.

In summary, enterprise blockchain solutions have reached a minimum viable product (MVP). Technical barriers are falling fast in the building of a new 'network of networks'. Hot spots of development are now making visible the shape of things to come and the leaders who are likely to dominate this emerging market.

It's currently being led by transitions in global financial and monetary systems where blockchain capabilities enable trust and digital connective tissue. That said, all industry verticals will eventually be impacted to some degree.

Blockchain application growth opportunities include:

Global trade: Multiple process rails within the international trade ecosystem are migrating to blockchain-enabled networks and applications. Within eCommerce trade, the challenge to supply chains posed by COVID-19 arrives at a time when they were already being retooled to capture 50x-100x gains in efficiency, creating a timely synergy.

Cryptocurrencies, digital finance and the global monetary system: Dominant players in these systems, including the world’s largest financial institutions and central banks, are expected to roll out cryptocurrency strategies in the near term. The foundations of a global blockchain network are already in place while new services are being reimagined and developed.

Healthcare: This ecosystem represents some of the highest-complexity and highest-reward opportunities. The coronavirus stress-test has laid bare the many cracks in these traditional healthcare systems that need to be filled.

Social impact ecosystems to make a better-interconnected world: In the blockchain multiverse, developing markets and social enterprises are attracting attention as blockchain is used to provide solutions to problems in ways that were not possible before.

Outlook for Blockchain Use Case Development

To date, the commercial applications of blockchain technologies have been limited to the few forward-looking organizations that championed the early-adopter mindset. Many of the initial applications focused on improving transactions within established industries, such as the diamond and other precious gems sector.

Looking to the future, more industries that have previously been impacted by fraudulent activity will choose to adopt blockchain solutions. Demand for distributed ledger technologies will continue to thrive and grow as more organizations explore new use cases and pilot new projects.

However, given the recent history, it appears that enterprise blockchain market development progress will evolve slowly.