Enterprise blockchain, is a cost-cutting effort by an oligopoly of financial firms to mutualize processes and costs around the front, middle, and back offices. As we deduced in our Crypto Utopia keystone deck, nearly $250 billion of industry cost across payments, banking, capital markets and insurance is available for transformation. But let's not get ahead of ourselves, it's difficult to ignore that blockchain and its true value to enterprise is, now more than ever, met with the same level of skepticism that cryptocurrency now receives post the 2018 crypto-apocalypse. 'The Finanser' - Chris Skinner does a good job at teasing the reasons why this is the case in a recent blog post. In contrast, it's difficult to ignore the significant growth projections forecasted by the IDC -- specifically the 88.7% increase in worldwide spending on blockchain to nearly $2.9 billion in 2019. Such projections make sense when looking through a recent publication by Forbes which lists 50 large enterprises with minimum revenues or valuations of $1 billion, that are leading the way in adapting decentralized ledgers to their operating needs, leveraging industry consortiums and other proprietary projects to do so. Examples include the likes of Spain's second-largest bank - BBVA issuing the first blockchain-based syndicated loan, or Chinese chip manufacturer - Foxconn using blockchain to streamline its supply chain, or US restaurant supplier - Golden State Foods using the blockchain to reduce food spoilage. It is clear that it is becoming more and more difficult to ignore the significant value behind the application of distributed ledger technology on large enterprises, just as much as it was for Dorothy to ignore the man behind the curtain in the Wizard of Oz. The real question for today's skeptics is when they'll realise they had the heart, brain, and courage to believe this reality the whole time?
Source: Autonomous NEXT (CryptoUtopia), US National Institute for Standards and Technology, Forbes (Blockchain's Billion Dollar Babies)