In a recent report compiled by Cisco, the tech giant sees huge potential in blockchain technology, stating that the technology could have its breakthrough in many industries within the next couple of years.

Cisco Predicts a Growing Blockchain Market

Cisco predicts that by 2027 around 10 percent of global gross domestic product (GDP) would be in some way stored or transacted on the blockchain.

While this does not immediately translate into trillions of dollars in market capitalization for blockchain platforms, Cisco foresees that enterprises will increasingly use blockchains to secure value digitally. The company anticipates the enterprise blockchain market to reach $10 billion in 2021.

Substituting multiple intermediaries in the global economy with programmable contracts and seamless execution of transactions would open up more than $3 trillion in new business value, according to Cisco’s research.

Cisco’s report points at blockchain’s capacity to automate trust, which makes the technology attractive to apply at an enterprise level. By effectively removing the need for an external third party such as a bank or an auditor to establish a trusted relationship, blockchain will begin to see more implementation in businesses of all sizes.

Cisco’s Enterprise Blockchain Platform

Cisco issued its report in order to showcase the company’s own blockchain platform focused on serving enterprises. According to the report, plenty of industries are slated to benefit from the novel technology but highlights possible applications in supply chain management, Internet of Things (IoT), and smart cities.

Cisco identified transparency as one of the main problems enterprises face today, especially those in global supply chains. Another major concern for suppliers is the sheer complexity of global trade.

Cisco’s blockchain platform consists of multiple layers, each including multiple sub-services, with many options for customization.

Beyond its blockchain platform, Cisco says it is building an ecosystem that would bring together service providers, independent software vendors (ISVs) and startups, as well as industry specialists to create end-to-end industry solutions for the enterprise.

The company is actively involved in developing the enterprise blockchain technology to reach its full potential, highlighting its work with the Trusted IoT alliance, Hyperledger project, and the Enterprise Ethereum Alliance.

Private blockchains certainly have the potential to improve processes at an enterprise level, and big software providers like IBM and Cisco have been on the lookout to leverage the trend in order to capture the potential market value.

What do you make of Cisco’s predictions? Will enterprises spend $10 billion in 2021 on blockchain platforms? Let us know your thoughts in the comments below!