If Blockchain is Projected to by Worth Over $2.3 Billion by 2023, What’s that Mean for Bitcoin?
Monica Eaton-Cardone, a FinTech executive concentrating on risk management and fraud prevention lately published an analysis of blockchain in retail. It projected that the market value will be 29 times higher in 2023 than 2018—rising from $80 million to more than $2.3 billion—at a compound annual growth rate of 96.4%.
While just 6% of companies are ready to embrace blockchain now, another 9% is less than a year away and a further 43% set their timeline at one to three years; within the next five years, fully 78% of businesses say they will be ready to integrate DLT for payments.
On the report Monica, in her own word said:
“Today’s retail applications are proving that blockchain definitely lives up to its hype,” asserted Eaton-Cardone. “Distributed ledger technology has moved from theoretical possibilities to practical uses, and the implementations we’re seeing now are just the tip of the iceberg in terms of what blockchain can do for retailers. I believe blockchain has the capacity to completely reshape the retail landscape within the next five years.”
In the same report, Eaton-Cardone points out 5 blockchain applications that have the potential to change the face of retail.
- Supply Chain Management – Blockchain is able to capture a data trail that can trace a product from its source to retail shelves and all stops in between. For example, Walmart and IBM have partnered on a blockchain-based Food Traceability Initiative that can identify the origin of produce almost instantaneously; instead of taking nearly a week, that data can now be retrieved in just 2.2 seconds.
- Inventory Management – Blockchain is making it easier for merchants to track the location of goods—from manufacturer to warehouse to backroom to checkout—and replenish inventory in enough time to avoid backorder and out-of-stock scenarios, which reportedly cost retailers worldwide nearly $1 trillion each year.
- Authenticity Verification – Counterfeiting and theft are ongoing problems for manufacturers and retailers, whether it’s knockoffs of high-end goods such as handbags, fragrances, and watches or criminals trying to sell stolen art or automobiles to legitimate dealers.
- Auto-Renewal and Subscription Services – In the case of goods and services sold via subscription/recurring billing, blockchain can help protect both sellers and consumers. Sellers can use it to prove they have obtained a customer’s consent to charge their card/account on a recurring basis and demonstrate compliance with relevant laws, while consumers can prove when they have requested cancellation.
- Customer Data and Loyalty Programs – Blockchain allows retailers to save and use customer data for future orders and product recommendations without storing that data on their servers, where it could be susceptible to breaches or hacks.
To conclude the analysis, Eaton-Cardone acknowledges that there are still questions and considerations that will need to be addressed before blockchain is fully implemented on a global, industry-wide basis, from the privacy of data stored on peer-to-peer networks to the need for a common platform to emerging legal and regulatory developments.