Business expenses for the development of blockchain reach $ 1.7 billion, despite obstacles to the use of cases – FreightWaves


Blockchain, which is the basic technology for cryptocurrencies like Bitcoin and Ethereum, is mostly absorbed by the financial services industry, thanks to the promise of greater efficiency and lower operating costs.

Johnson claims blockchain, which is in fact a distributed ledger, "reduces errors and simplifies operations because everyone looks at the same numbers."

Similarly, blockchain promises to facilitate other financial services such as loans to syndicated banks, which according to Johnson still uses faxes.

In addition to global payments, commercial finance is ranked first in potential blockchain uses, Johnson says. He cites the work of Maersk (Nasdaq OMX: MAERB) and IBM (NYSE: IBM) on the blockchain platform of Tradelens, which aims to make container shipping more efficient, as an example of the use of blockchains in facilitating the Commerce.

"There is a lot of complexity in facilitating global trade flows," Johnson said. "A manufacturer in a country can get a purchase order, so take that order in a bank to get a loan until the order is shipped.Most of the tracking of this document can be done through blockchain. "

The increase in spending coincides with the greater realization of the difficulties in using the blockchain for many companies. Johnson states that 57% of respondents found it more difficult than they initially thought to use blockchain in their business.

Despite the challenges, at least two-thirds of respondents expect the blockchain to produce "significant changes" in an area of ​​their business within two years, with almost all changes occurring over five years.

As with other technologies, the blockchain "starts slowly, goes up with tons of press, then gets to the depression of disillusionment in which things do not move as quickly as possible," Johnson said. "But after that usually comes a plan where everything starts clicking."

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