eResearch | Since the inception of blockchain technology in 2008, through the development of the cryptocurrency, Bitcoin, the industry has grown exponentially in adoption, investment, and revenue. According to Grand View Research, the blockchain industry’s market value is expected to grow at a CAGR of 69.4% from US$34 billion in 2019 to US$57 billion by 2025.
Henri Arslanian, head of the FinTech and crypto department at PWC stated that the blockchain space had a lot of “noise” in 2018, and in 2019, larger and more credible companies have started investing and collaborating in the industry.
Large tech giants could not ignore the amount of capital flowing into the blockchain industry; companies such as Amazon.com, Inc. (NASDAQ: AMZN; LSE: 0R1O; DB: AMZ), International Business Machines Corporation (NYSE: IBM; LSE: IBM; DB:IBM), and Oracle Corporation (NYSE: ORCL; LSE:0R1Z; DB: ORC) have each created their own respective blockchain platforms to service both small and large enterprises on developing blockchain products and integrating blockchain technology into legacy systems.
In March 2017, IBM announced the release of the first enterprise grade blockchain service utilizing the Hyperledger Fabric, a blockchain framework developed by the Linux Foundation with the support of IBM, Intel, and SAP Ariba, which is now one of the most popular open source blockchain frameworks for enterprise applications. Some of the world’s largest food suppliers including Unilever and Walmart are working with IBM to develop blockchain products such as global food tracing systems.
In July 2018, Oracle announced the availability of its blockchain solution platform called the Oracle Blockchain Platform, developed to expedite companies’ blockchain applications. The platform was the second in the industry to offer an enterprise-grade blockchain service and utilizes the same framework as IBM, the first company to launch a blockchain platform. Multiple companies including NeuroSoft, TradeFin, and HealthSync are at production stages for their blockchain applications on the Oracle Blockchain Platform.
Amazon initially dismissed blockchain technology as a core part of its business, but in April 2019,it launched a fully managed blockchain service called Amazon Managed Blockchain. Utilizing Hyperledger Fabric and Ethereum, two popular open source blockchain frameworks, the platform allows businesses to develop and scale blockchain networks that have growing participants and transactions. Companies such as AT&T Business and Nestlé have already signed on to be some of the first general clients of Amazon Managed Blockchain.
Other large tech companies are now paying attention to the blockchain industry and strategizing on how to take a piece of the large amounts of capital being invested and spent on blockchain products.
In contrast to the several tech companies successfully developing their own blockchain services to become a middle-man in the quickly growing industry, in June 2019, Facebook, Inc. (NASDAQ: FB; LSE: 0QZI; DB: FB2A) announced its own blockchain product, a global cryptocurrency called Libra, which received immediate pushback from the U.S. government due to concerns on global financial stability and effects on monetary policy.
As the blockchain industry grows with larger companies developing blockchain solutions, these companies must be cognizant of government concerns over privacy and security to be able to sustainably implement disruptive products and services.
//
Amazon.com, Inc. (NASDAQ: AMZN; LSE: 0R1O; DB: AMZ)
Headquartered in Washington, United States, Amazon is a multinational technology company with diversified operations in e-commerce, cloud computing, digital streaming, and artificial intelligence. Its cloud computing arm, Amazon Web Services, currently runs its blockchain platform, Amazon Managed Blockchain. Amazon currently trades for US$1768.95 per share with a market capitalization of US$875.1 billion.
Facebook, Inc. (NASDAQ: FB; LSE: 0QZI; DB: FB2A)
Headquartered in California, United States, Facebook is a social media and social networking company that utilizes its online platform for advertisements and data aggregation. It is currently involved in a controversial case as Facebook announced its own development of a global cryptocurrency called Libra, which the U.S. government thinks will risk the stability of the U.S. monetary policy. FB currently trades at US$179.97 per share with a market capitalization of US$513.2 billion
International Business Machines Corporation (NYSE: IBM; LSE: IBM; DB:IBM)
Headquartered in New York, United States, IBM is a multinational information technology company that focuses on the production and distribution of computer products and services. It is one of the 30 companies included in the Dow Jones Industrial Average and is one of the world’s largest employers. IBM currently trades at US$131.67 with a market capitalization of US$116.6 billion.
Oracle Corporation (NYSE: ORCL; LSE:0R1Z; DB: ORC)
Headquartered in California, United States, Oracle Is an enterprise software and cloud computing company that is best known for its enterprise resource planning, customer relationship management, and supply chain management software. Oracle currently trades at US$52.66 per share with a market capitalization of US$175.6 billion.
//
