Facebook’s FB recent announcement to launch its own cryptocurrency, Libra, has put spotlight back on blockchain technology.
Tech companies are now exploring various uses of blockchain to revolutionize the functioning of industries including payments, banking, retail, healthcare, logistics, utility and transportation.
Per Orbisresearch.com data as quoted by Reuters, blockchain is projected to be utilized by 65% of enterprises by 2020. Moreover, according to IDC data, spending on blockchain solutions, is expected to witness CAGR of 76% between 2018 and 2022 to hit $12.4 billion.
Apart from Facebook, International Business Machines IBM, Google, and Oracle ORCL, are expected to gain impetus from breakthrough developments in the blockchain domain. Meanwhile, initiatives undertaken by Amazon AMZN, Microsoft MSFT, SAP SE SAP, and Accenture ACN remain noteworthy.
Benefits of Blockchain Inducing Adoption
Blockchain is much faster than legacy technologies in completing a transaction due to the absence of manual processing or authentication by intermediaries as it utilizes a distributed consensus.
Moreover, the system is anticipated to be incorruptible and meant to provide unaltered information. Consequently, the possibility of monetary losses is low with minimum chances of double counting and hacking.
Overall, the integrated use of the technology can enable countries to achieve higher economic output with smarter cities and simplified day-to-day systems in a cost-efficient manner. In fact, per a Cisco study, 10% of global GDP is estimated to be stored on blockchain by 2027.
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IBM Leads the Pack
IBM leverages Hyperledger technology and is an early bird when it comes to providing enterprise blockchain applications. Notably, IBM-Maersk co-owned TradeLens blockchain platform has gained significant adoption among logistics providers. The solution currently serves 15 carriers including leading ocean carriers Ocean Network Express (ONE) and Hapag-Lloyd.
Moreover, IBM recently rolled out next-gen of IBM Blockchain Platform which is anticipated to aid it in sustaining leading position in the enterprise blockchain market.
Moreover, the company is involved in numerous pilot projects to explore the use of blockchain tech. For instance, IBM Blockchain Platform for Multicloud and AI capabilities recently enabled IPwe to track approximately five thousand patents.
Facebook’s Libra Ups the Ante
Facebook’s Libra is a game changer with regards to the adoption of blockchain technology. Moreover, the company acquired Chainspace to add blockchain capabilities and is reportedly looking forward to instill blockchain-based authentication for logging in to its website.
Oracle, Google Partners Chainlink
Oracle recently inked deal with smart contract startup, Chainlink, which will enable 50 startups to plug in their data into Oracle Blockchain Platform for free. This is anticipated to strengthen Oracle’s Data Cloud and Blockchain platform by enabling the API developers roll out robust blockchain applications.
Meanwhile, Google has also partnered Chainlink to facilitate Ethereum app developers to embed additional enterprise data. This allows smart contracts processes to be deployed on the blockchain platforms. The collaboration enables the use of Google Cloud Platform’s BigQuery database into the blockchain environment.
Google cited that developers could explore three essential use cases involving prediction marketplaces by utilizing mobile and web analytics, hedging of futures contracts, and transaction privacy.
Microsoft & Amazon Make Their Presence Felt
Microsoft has rolled out a fully-managed Azure Blockchain Service to accelerate development of robust blockchain-enabled smart contract applications. The flexibility in usage and Azure’s secure broad-based availability are anticipated to bolster adoption of the service. The tech giant recently joined Hyperledger community and entered into a partnership with Truffle to help blockchain developers create innovative applications.
Amazon Managed Blockchain service utilizes Hyperledger fabric and is based on Amazon Web Services (AWS) infrastructure. Legal & General, Singapore Exchange and Nestlé are a few companies which have selected Amazon’s blockchain offerings in the recent past. Moreover, per Cointelegraph Brazil, Amazon-owned Twitch re-enabled bitcoin and bitcoin cash payments.
Accenture & SAP Buzzing Around
Accenture’s initiatives in this space are backed by its motto of “Blockchain needs to adapt to an imperfect world.” The company is working on a pilot project with Thales on supply chain management. Reportedly, Accenture is likely to ink deal with the Netherlands, Canada, among others, to deploy blockchain tech in identifying travelers.
Meanwhile, SAP Cloud Platform Blockchain offering supports Hyperledger fabric, multiple-chain nodes and Quorum nodes. This enables enterprises in innovating and developing robust blockchain tools. The company is developing a blockchain-based solution along with Tata Consultancy Services to track medical devices throughout the supply chain.
Currently, Oracle, Microsoft and Accenture carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, IBM, Facebook, Amazon and SAP carry a Zacks Rank #3 (Hold).
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