The global revenue for blockchain technology is on track to hit $10 billion by 2023, according to a new study released by ABI Research.
The study states that:
- An increase in revenues continue to show strong market interest in blockchain application
- However, the Initial Coin Offerings in 2018 have decreased significantly
- An increase in venture capital funding, especially in blockchain infrastructure development is driving the market growth
- Venture capital funding is catching up to Initial Coin Offerings with 620 rounds ($3.1 billion in investments) in 2018. An increase from $850 million after 153 rounds in 2017
- The lack of a middleware class of technology offerings to tie blockchain solutions with applications from startups is hindering an increased adoption of blockchain
- Blockchain-as-a-service offerings are very much focused on locking-in customers in-house (infrastructure, platform and software), with limited interoperability or platform-agnostic offerings at the platform level to allow for a hybrid scenario
- The middleware segment to emerge from 2021 onward to enable development and interoperability at the platform and software level
Michela Menting, blockchain and digital security research director at ABI Research, said: “Tighter regulation (including securities) and taxation (as foreign currency, income, financial asset, etc.) on cryptocurrencies in a number of countries are prompting investors to look beyond ICOs towards more stable VC-based investment for blockchain startups focusing on support infrastructure, retail, supply chain, and enterprise applications.”
“While the crypto-winter has dampened spirits somewhat despite successful completion of many pilots, the dip in enthusiasm is temporary and will serve to filter out the superficial and fraudulent offers from the market,” Menting concludes.
For more information about the report, click here