The blockchain industry could eventually be worth $7 billion, based on calculations that two percent of corporate servers would run the technology at a cost of $5,500 annually.
Analysts have however refrained from putting a time scale on the estimate, as the technology is still to be widely adopted.
The technology is well-suited to some of the world’s biggest company, could amalgamate blockchain with existing cloud computing operations and improve supply chain infrastructure, according to BoA research analyst Kash Rangan.
“Amazon will benefit from incremental cloud services demand from Blockchain implementation, while improved supply chain tracking should make Amazon’s retail operations more efficient,” Rangan announced yesterday.
Blockchain is the backbone for cryptocurrencies.
It shares data on a distributed, secure, and incorruptible digital ledger in a way that “databases have not been able to in the past,” Rangan said.
America retail giant Walmart is among the first to work on a food safety blockchain solution and recently announced it’s requiring all of its lettuce suppliers to upload their data to the blockchain by September 2019.
While it’s not being used in many other consumer instances yet, blockchain could improve existing parts of “software as a service” or SaaS.
Microsoft’s Azure for example, could rely on what Rangan called “blockchain as a service” or “BaaS,” on its popular cloud computing platform.
“BaaS on Azure offers services such as smart contracts and other third party apps, and should benefit as use of blockchain on Azure increases,” Rangan said.
BoA also said companies such as Oracle and IBM are set to to benefit from the technology.
But as a caveat, the researchers added there remain a range of blockchain estimates and its money-making ability is yet to be proven.
“Many blockchain use cases have been identified, but full products/services have not yet been built out and are not used in production,” Rangan said.
IBM recently landed a seminal five-year $740 million agreement with the Australian government to use blockchain to improve data security and automation across federal departments.
Microsoft announced the launch of its Ethereum-based Azure cloud computing platform back in 2015.
And Amazon Web Services’ cloud platform earlier introduced a framework for Ethereum and Hyperledger Fabric, allowing users to manage their own blockchain-powered decentralised applications.