Blockchain technology has the potential to make many different things more secure and accountable, such as financial transactions, micropayments, IoT applications, health records, corporate audits and many others, observes David Schatsky and Craig Muraskin in an article recently published on Deloitte University Press, title “Beyond Bitcoin: Blockchain is coming to disrupt your industry”.
They write that the technology is young and changing very rapidly – is widespread, but commercialization is still some time off. Nonetheless, they add, to avoid disruptive surprises or missed opportunities, strategists, planners, and decision makers across industries and business functions should pay heed now and begin to investigate applications of the technology.
The signals are here.
- A billion dollars in venture capital has flowed to more than 120 blockchain-related startups, with half that amount invested in the last 12 months.1
- Thirty of the world’s largest banks have joined a consortium to design and build blockchain solutions.2
- Nasdaq is piloting a blockchain-powered private market exchange.3
- Microsoft has launched cloud-based blockchain-as-a-service.4
- Blockchain concepts, prototypes, and investments are emerging in every major industry.
Venture investors, including corporations’ venture arms, have invested a billion dollars in more than 120 blockchain-related startup companies so far, about half of this investment in the last year alone. Most of the startups are based in the United States, but blockchain-related ventures are operating on every continent but Antarctica. Some large companies such as Amazon, Bank of America, IBM, and MasterCard are staking a claim to the blockchain opportunity by filing their own patents related to blockchain.
The vendor ecosystem can be segmented into three broad categories:
- Applications and solutions: This segment includes operators of bitcoin wallets and payment providers. Examples include Circle and Coinbase (wallets), Ribbit.me (loyalty points), ShoCard (identity), and Ripple (cross-currency bank-to-bank payments). This segment has attracted nearly $600 million in venture capital funding to date.37
- Middleware and services: Companies in this segment provide software platforms on which enterprises can build blockchain applications; examples of companies in this segment are BlockCypher, Chain Inc., Colu, and Factom. Venture funders have placed about $80 million with this segment.
- Infrastructure and protocols: This segment looks to use blockchain technology to develop cryptographically secure, distributed consensus mechanisms. Ethereum, a crowdfunded, open-source project, has emerged as an alternative to the bitcoin blockchain. Ripple, mentioned above as a solutions company, also offers its own distributed ledger technology. This segment has taken in just under $300 million in venture funding, two-thirds of that in 2015. In contrast to the other segments, 2015 investment in infrastructure and protocols is up sharply compared to 2014.
Blockchain is an extraordinarily fast-moving phenomenon.40 While it is impossible to know with certainty how this technology will be adopted across industries, the current areas of interest outlined above give a good indication of where innovation is likely to emerge in the near future. The innovation group at Deloitte LLP will continue to track the emergence of new use cases and adoption by major companies and innovative upstarts.
Where else can we look to sense the direction of blockchain? Venture capital investment is one type of signal, and recent patterns indicate shifting focus in the blockchain ecosystem. As noted above, the focus for investment has moved from currency applications (example: payment processing) in 2014 to non-currency applications (example: smart contracts, securities settlement) by the end of Q3 2015.
Read paper in full here.
- Lykke Crowdfunding – One -year Lykke Forward Offering - February 22, 2017
- Daimler AG Joins Hyperledger Blockchain Consortium as Premier Member - February 21, 2017
- Voatz and Clear Ballot to Explore Blockchain Technology for Remote Voting - February 20, 2017
- New Blockchain Smart Contract Token Developed By GameCredits - February 20, 2017
- Blockchain Could Be a New Operating System for the Planet Says Jeremy Wilson, Vice Chairman of Barclays Corporate Banking - February 20, 2017
- JAAK and the Guardian Initiative Announce MΞTA: A Blockchain Pilot for The Media & Entertainment Industry - February 18, 2017
- The StabL Project – Hadrien Charlanes Plans Stable Tokens and Derivative Products For Ethereum Blockchain - February 17, 2017
- Blockchain Energy Trading Trials Kickoff with Canada’s BTL Group and Austria’s Wien Energie - February 16, 2017
- Smart Dubai Office (SDO) and 1776 Launch Blockchain Challenge - February 16, 2017
- BOScoin, a New Cryptocurrency, Introduces “Trust Contracts” to Overcome the Shortcomings of Ethereum Smart Contracts - February 16, 2017
- European Commission Working on Blockchain – Plans Actively Seeking Pilot Partners - February 16, 2017
- Canadian Blockchain Company SecureKey Awarded U.S. Department of Homeland Security Grant - February 16, 2017
- Microsoft and KPMG Cut Deal and Kickoff Blockchain Nodes in Frankfurt and Singapore - February 16, 2017
- Global Blockchain Project FERMAT Announces Significant Alpha Release for the “Internet of People” - February 16, 2017
- Russian Blockchain Startup Exscudo Aims to Bridge Traditional Finances And The Cryptocurrency Market - February 15, 2017
- Active Year Ahead for Blockchain Solutions in Financial Services, says Corporate Insight - February 14, 2017
- BlockApps and Red Hat Cut Deal to Deliver Hybrid Cloud Solution for Blockchain Applications in the Enterprise - February 14, 2017
- Hyperledger Blockchain Turns One – Director Brian Behlendorf Updates - February 14, 2017
- The State Bank of India Initiates National Blockchain Bank Consortium - February 14, 2017
- The National Bank of Abu Dhabi (NBAD) Introduces Real-Time Cross-Border Blockchain Payments - February 14, 2017
- China Turning Hard to Blockchain – Focus on Fraud Reduction - February 13, 2017
- U.S. Department of Health and Human Services to Kick Off Blockchain in Heathcare Code-A-Thon - February 13, 2017
- Hexayurt Capital presents the Internet of Agreements at the World Government Summit - February 13, 2017
- EquiChain – Blockchain for Emerging Markets Post-Trade - February 13, 2017
- UK Government Approves Tramonex Labs to Issue Currency on Blockchain - February 12, 2017
- US Congress Buckles Down With Blockchain – Launch Congressional Blockchain Caucus - February 11, 2017
- Nick Szabo: Some Private Blockchains Qualify as Bona Fide Blockchains - February 10, 2017
- Bitfury Group and Government of Georgia Expand Blockchain Land Titling Project - February 10, 2017
- Expanse Project Announces Launch of the Expanse Bond System (EBS) - February 10, 2017
- WISeKey to Establish IoT Blockchain Center of Excellence in New York - February 10, 2017
- Blockchain Startup Coinfirm Gets $700k Growth Equity Via VC Funding - February 10, 2017
- Blockchain Health Startup Hashed Health Raises Nearly $2 Million in Initial Funding Round - February 10, 2017
- IBM Kicks Off Blockchain Initiative with Dubai Government - February 10, 2017
- Blockchain Pioneer Medici Ventures Invests in Factom, Inc. - February 7, 2017
- Canadian Blockchain Startup Equibit Raises Quarter Million Dollars in Day One of Initial Coin Offering (ICO) - February 5, 2017
- Blockchain-Fuelled Grantcoin Foundation Distributes Universal Basic Income (UBI) Grants To 1,132 People In 79 Countries - February 5, 2017
- Blockchain Startup Chronobank partners with NEM to create ChronoNEM wallet - February 3, 2017
- dotBlockchain Music Project Announces Partners - February 2, 2017
- Switzerland Promises to Ease Rules for Fintech and Blockchain Startups - February 2, 2017
- Netherlands’ ING Bank Completes 27 Blockchain POCs - February 2, 2017
- South African Blockchain-Based AR Game nears $1 Million in ICO Funding Goal - February 2, 2017
- The Wall Street Blockchain Alliance Announces New Blockchain Assets Working Group - February 2, 2017
- Tel Aviv’s Colu Launches Local Digital Currency for Liverpool – East London Next - February 2, 2017
- South Africa Mulling Over Blockchain Digital Currency - February 2, 2017
- Nine in Ten Governments Investing in Blockchain by 2018 Says IBM Study - February 2, 2017
- NATO Awards Estonian Blockchain Company Guardtime Contract for Next-Generation Cyber Range - February 2, 2017
- Microsoft and Tierion Collaborate on Attestations and Blockchain Proofs - February 2, 2017
- Irish Funds and Deloitte Trial Blockchain Proof-of-Concept - February 2, 2017
- Cambridge Blockchain Raise $2 Million for Digital Identity Enterprise Software - February 2, 2017
- National Altcoins – a Toy for Market Sharks or Godsend for Local Communities? - February 1, 2017