Study Forecasts $2.9 Billion Blockchain Expenditure for 2019
In a published March 4, 2019, the International Data Corporation () forecast worldwide spending on blockchain solutions to be roughly around $2.9 billion in 2019, an impressive surge of 88.7 percent from the 2018 figure of $1.5 billion.
From Pilots and Proof of Concept to Actual Implementation
2019 could very well be the catalyzing year for blockchain technology that sees it transform from a buzz word into one of the most sought after emerging techs by enterprises the world over.
Per a newly updated from the IDC, a total of $2.9 billion is likely to be spent on blockchain-based solutions in 2019. Furthermore, the market intelligence firm forecasted an impressive five-year compound annual growth rate (CAGR) of 76 percent over the forecast period from 2018 to 2022 and total spending to the tune of $12.4 billion in 2022.
The press release posits that global expenditure on blockchain-ready solutions will be led by agents in the , where the banking, security and investment service providers, and will invest more than $1.1 billion.
The financial sector will be closely followed by the manufacturing and resources sector, as well as the and services sector which are forecast to spend $653 million and $642 million in blockchain solutions, respectively.
It’s worth highlighting that the manufacturing and resources sector will witness the fastest growth in blockchain expenditure over the 2018-2022 forecast period with a strong five-year CAGR of 77.6 percent, closely followed by five-year CAGR of 77.1 percent of the distribution and services sector.
The report also talks notes that cross border payments & settlements and trade finance & post-trade/transaction settlements are the top two use cases of blockchain that will witness the most inflow of investment ($453 million and $285 million, respectively) in 2019.
United States to Lead
According to the report, the United States will see the highest amount of money being spent on blockchain products in 2019. The report states the US will spend approximately $1.1 billion this year, followed by Western Europe ($674 million), and China ($319 million).
, research director, said:
“Blockchain is maturing rapidly, and we have reached an inflection point where implementations are moving quickly beyond the pilot and proof of concept phase. That is why data on the actual spend on the technology is so vital: it provides the context in which blockchain is evolving.”
Confideal boasts a vibrant ecosystem where the core features of the integrated platform, such as smart contracts and arbitration, unite to form an application that is far more than just the sum of its parts.
[Note: This is a sponsored article.]
International trade has existed since ships first sailed upon the seas and caravans crossed mountains, but the increasing pace of technological innovation has led to a massive surge in international trade. Contracts and manufacturing details can be hammered out over video conference calls while documents can be digitally signed and sent across the world without a person having to move from their office desk.
Of course, this increased amount of trade can have potential headaches, especially if a dispute arises, which is where comes into play. Confideal is an integrated platform based upon the Ethereum blockchain that features an amazing ecosystem of core features that helps facilitate trade while reducing costs.
Three Core Pillars
The three core pillars of are: smart contracts, built-in arbitration, and CDL tokens. A number of platforms offer a single feature or two that international traders might be interested in, but Confideal is unique in that it has created a complete ecosystem composed of individual functions that come together into a harmonious whole.
Smart contracts have been revolutionary in matters of data management, and they offer a tremendous boon to businesses by creating a document that cannot be altered and is openly transparent. Many businesses have failed to take advantage of smart contracts due to the perceived need for programming knowledge and a dedicated online team, but Confideal allows for the creation of Ethereum-based smart contracts without the need for any coding.
Built into the smart contract is the arbitration feature of Confideal. The entity drawing up the contract selects an arbitrator to be used in case of a dispute arises. An important consideration is that all signatories to the smart contract have to agree to the chosen arbitrator.
Legal professionals and firms apply to Confideal, showing their qualifications and credentials, to become arbitrators on the platform. takes one of two routes: both parties can agree to abide by the decision of the arbitrator or an arbitrator can come to a conclusion that can then be used in international courts of law for further enforcement.
The final core facet of is the CDL token, which is the main internal cryptocurrency for the platform. The token was created according to the ERC20 token standard on the Ethereum blockchain and has several uses on the integrated platform.
Bringing It All Together
Each Confideal’s three core features, when viewed independently of each other, is quite beneficial in regards to international trade. However, the symbiotic manner in which they all work together is breathtaking. The features weave together into an intricate dance that reinforce each other and make the overall ecosystem far stronger than each of the individual components.
Merchants can use CDL tokens to generate smart contracts and act as currency for the payment of the contract, which negates the standard 1% fee. These tokens can also be freely exchanged for other ERC20 tokens.
The smart contract, standing alone, is an amazing innovation for trade, but the inclusion of arbitration takes the smart contract to an entirely new level. Merchants not only have a codified document that spells out the conditions of the deal, not to mention the funds held in escrow and that the contract is unable to be illegally modified, but an automatic means for resolving a disagreement that all parties have already agreed upon has been put into place.
The dance between arbitrators and CDL tokens continues in the fact that token holders have a number of votes, based upon the number of tokens held, that can be cast to rank specific arbitrators. Every ten tokens equals one vote, so token holders have the right to directly influence the arbitration aspect of Confideal. However, this influence is not absolute as the smart contract that details the arbitrator has to be agreed upon by all interested parties. Then there’s the fact that arbitrators have no details on the principals of the smart contract, so there’s no undue influence of favoring a side that has given votes to that particular arbitrator.
Each of the core features of is of great use to merchants, but it’s the combination of all three elements (smart contracts, tokens, and arbitrators) into a cohesive whole that makes the integrated platform far greater than the sum of its parts. Each facet of Confideal reinforces the others, making them stronger and better than they would be on their own. Tokens can be used as payment and to rank arbitrators whilst arbitration is hardwired into the smart contracts that serve as the foundation of the platform. In the end, merchants and arbitrators are united together into working for smooth and seamless international trade just as the distinct features of Confideal are united together to facilitate such endeavors.
