One of the largest tech conglomerates in the world, US-based Cisco, recently issued a report highlighting the company’s enterprise-oriented blockchain platform. In the report, Cisco suggested that blockchain has the potential to hold as much as 10 percent of the world’s GDP. This means that several trillion dollars worth of value could be stored on both decentralized and permissioned blockchains by 2027.
Cisco Expects Over $9 Billion Spent Annually on Blockchain Projects by 2021
While the crypto industry keeps experiencing ups and downs, with companies constantly at battle with the turbulent market, blockchain technology itself continues to advance. The industry has been on the rise since its inception in 2008 and is permeating into every niche imaginable—from supply chains to copyright management.
The most recent report published by Cisco has predicted a bright future for blockchain, saying the technology could very much become the norm for many industries within a couple of years.
Cisco has issued its report in order to highlight the company’s own blockchain platform focused on enterprises. According to the report, the main selling point for its solution is the technology’s potential.
Cisco identified transparency as one of the main problems enterprises face today, especially those in global supply chains. A rough estimate showed that US-based semiconductor companies lose over $7.5 billion each year due to counterfeiting.
Another major concern for suppliers is the sheer complexity of global trade. Multiple intermediaries, such as financial institutions and brokers, push suppliers in emerging markets to pay interest in receivable financing that is as high as 30 percent.
Blockchain Will Bring New Business Value, Automate Trust, and Improve Security
Such programmable commerce would open up more than $3 trillion in new business value, Cisco’s research found.
If the predictions made in the report were to come true, almost 10 percent of global gross domestic product (GDP) would be stored on blockchain by 2027. This, however, doesn’t mean that the crypto industry would also see such a dramatic rise, as most enterprises and financial institutions would allegedly shift their focus to more interoperable blockchains.