This means that as much as $10trn (€8.9trn) of global GDP could be stored on both decentralized and permissioned blockchains within eight years. Currently, global GDP is valued at about $80trn by 2027. Cisco also expects $9.7bn would be spent annually on blockchain projects by 2021.
According to Cisco, “the true innovation of blockchain is its ability to automate trust among the parties using it. – This embedded trust allows consumers, enterprises, and governments to automate how they manage any transactional relationship.”
Although the ability to create a trusted environment for transactions to occur may not be something that the average consumer thinks about, it’s very important for businesses. In fact, the Cisco report claims that, “83% of executives believe trust is the cornerstone of the digital economy.”
“Traditionally, institutions such as banks, governments, and corporations have played the role of managing risk to facilitate trade and commerce. Now, for the first time, organizations can use technology to manage this risk to lower uncertainty and reduce everyday transaction costs of doing business,” said the report.
The report found that apart from creating cost-reducing solutions for businesses, blockchain could be used to optimize smart cities, supply chain solutions, and the internet of things (IoT). The company said that it was actively working with a number of ecosystem partners in order to develop “standards and tools for blockchain technology to reach its full potential in the enterprise.”
Big companies such as AB InBev, Accenture, BBVA, Barclays, IBM, Deutsche Telecom, SAP, Repsol and Telefonica last week pledged to support blockchain technology by working to develop a “predictable, transparent and trust-based” framework. The new initiative also has the backing of international organisations such as the European Commission, the World Bank, the OECD, the UN World Food Programme, Unicef and the European Investment Bank.