The largest chunk of worldwide spending on new blockchain networks – nearly US$2.9 billion this year – will come from the financial sector, where banking, securities and investment services, and insurance industries will invest more than US$1.1 billion, according to a new IDC report.
The research firm also noted that blockchain implementations are moving quickly beyond the pilot and proof-of-concept phase to real-world production systems.
For example, last fall, Walmart and Sam's Club, both of whom were piloting a supply chain management system based on blockchain, told their produce suppliers to get on board the distributed ledger network within a year so they can track vegetables from farm to shelf. That deadline: September 2019.
And J.P. Morgan Chase recently announced it plans to launch what is considered to be the first cryptocurrency backed by a major bank, a move that could legitimize blockchain as a vehicle for fiat cryptocurrencies.
J.P. Morgan's JPM Coin will basically be a way of using a permissioned blockchain ledger to keep track of balance transfers within the bank's business, and internationally between institutional clients.