Blockchain technology offers a multi billion dollar opportunity for big tech companies such as Amazon and Microsoft, a new report from the Bank of America claims.
The market could hit $7 billion despite currently not seeing widespread adoption, reports CNBC, and cloud computing and supply chain operations are two key areas that could benefit from blockchain integration.
Bank of America research analyst Kash Rangan said: “Amazon will benefit from incremental cloud services demand from blockchain implementtion, while improved supply chain tracking should make Amazon’s retail operations more efficient.
“BaaS (blockchain as a service) on Azure offers services such as smart contracts and other third party apps, and should benefit as use of blockchain on Azure increases,” he added.”
The report estimates that 2 per cent of servers will eventually be used for blockchain purposes, costing $5,500 a year per server. Other companies it pegs as standing to benefit most from the technology are Oracle, IBM, Salesforce, VMware and more.
Despite the potential however, Rangan added: “Many blockchain use cases have been identified, but full products/services have not yet been built out and are not used in production.”
Similar, more modest, but no less optimistic claims have been made in the past, with research claiming in July that blockchain could add $1 billion to the telecoms industry by 2023. Time will tell whether big tech firms fully embrace the emerging technology.