On the 2nd of October, it was reported that BoA, or the Bank of America, estimated that blockchain could be a $7 billion market, as well as provide a significant boost to corporate giants like Microsoft and Amazon.
The technology is well-suited to the biggest corporations worldwide
While the analysts of the Bank of America refrained from putting a time stamp on the industry becoming a major, multi-billion dollar addressable market, they also based their estimates on a ballpark figure which says that 2% of the corporate servers are going to be used to run blockchain at the cost of $5,500 annually.
The research analyst of BoA, named Kash Rangan told in an interview that the technology is well-suited to some of the largest corporations in the world, nothing for example that Amazon is going to benefit from incremental cloud services demand from Blockchain implementation, while improved supply chain tracking has to make the retail operations of Amazon more efficient.
However, Kash Rangan also emphasized that while a lot of potential use cases for blockchain were widely recognized, full products or services were not yet built out and are not utilized in production, leaving the capacity of the technology to generate real-world capital still unproven.
The innovation could take SaaS models
Also, Rangan added that the innovation of distributed ledger system could take the so-called “software as a service” or SaaS models to the next level with the implementation of “blockchain as a service” or BaaS.
Rangan chose the popular blockchain-based Azure platform of Microsoft, as a salient example, stating that BaaS on Azure offers some services like a smart contract, as well as other third-party application, and it should benefit the use of blockchain on Azure increases.
Among some other, the other high-profile beneficiaries which poised to benefit from blockchain, the Bank of America also included Oracle, IBM, as well as Salesforce.com, and VMware, together with some meaningful names from the real estate and mortgage businesses like Redfin, Zillow, as well as LendingTree.
Firms recognized by BoA made significant forays
Notably, a lot of the firms which were recognized by BoA already made some major forays into the blockchain space.
According to some data from August, it was revealed that IBM is competing with Chinese e-commerce giant Alibaba for the highest place on a new list ranking global entities by the number of blockchain-related patents which they filed to date. In the summer of 2018, the tech giant IBM closed a seminal five-year $740 million deal with the Australian government in order to use blockchain to improve data security, as well as automation all over the federal departments.
For its part, Microsoft has first announced the launching of the Ethereum-based Azure cloud computing platform earlier in 2015, and it still continues to improve on the product. The Web Services of Amazon or AWS cloud platform this spring has also introduced a framework for Ethereum, as well as Hyperledger Fabric which permits users to build and manage their own blockchain-powered decentralized applications (DApps).