Everest Group predicts network-level adoption of blockchain will give rise to Network Resource Planning (NRP) applications which will span the boundaries of business function, companies and industries.
It takes a village to build a blockchain, according to Everest Group. The firm has released a new report that declares inter- and intra-industry collaboration to be the key for mature, production blockchain deployments that deliver benefits at scale.
“The future of blockchain is firmly rooted in the network model, and we foresee the market moving toward use case-specific networks with cross-industry collaboration,” said Ronak Doshi, vice president at Everest Group and one of the report authors. “Over time, we expect blockchain networks to begin replacing certain narrow functions of enterprise applications, eventually forming the foundation of a new class of Network Resource Planning (NRP) applications.”
NRP applications will fall into one of two categories:
- Capsule networks: highly application-specific and verticalized blockchain networks with fixed boundaries. Examples include food and ingredient tracking, inter-bank payments reconciliation, and counterfeit drug tracing.
- Super networks: extremely horizontal blockchain networks that cater to a broad set of industries and use cases. Examples include public services, digital identity, central bank digital currency, and citizen services.
Everest Group shares these findings in its new report, “Enterprise Blockchain State of the Market 2020 – Rise of the Network Resource Planner (NRP).” This report describes the market climate for blockchain networks and services, informed by the impact of COVID-19. The report also lays down a structured path for enterprises to overcome the business challenges in adopting blockchain networks.
In the report, Everest Group assesses the market state of 11 key industry networks powered by blockchain, including the following:
- Compliance: A blockchain network that helps federal agencies and banking institutions reconcile, validate, and verify an entity’s financials and tax compliance.
- Healthcare: A network that comprises healthcare providers, insurers and federal agencies that collaborate on patient records management, invoicing and reconciliation, and claims adjustment.
- Inventory/component tracking: A supply chain track-and-trace network that can be used to validate the quality and authenticity of a component or material.
- Telecom: Networks that anchor digital identity, preventing spam calls, enabling remittances, and settling roaming charges. These networks can comprise communication service providers (CSPs), networking original equipment manufacturers (OEMs) and federal agencies dealing with identities.
- Trade finance: Networks that help effectively execute trade transactions by making Letters of Credit more accessible, enabling faster settlements, robust pre-defined contracts, and better compliance for both the lender and the creditor.
Impact of COVID-19 on the Blockchain Market
In the short-term, the coronavirus pandemic is expected to stifle investments in blockchain initiatives due to disruptions in cash flow. However, in the medium and long term, the pandemic and ensuing economic crisis is a catalyst for acceleration of innovation, as enterprises seek to build resilient and risk-optimized operating models and finding ways to create differentiated value. As enterprises rethink the blockchain business case for the next normal, the blockchain adoption wave will accelerate.
*** Visit Everest Group’s COVID-19 page for a Global Service Delivery tracker, recent reports, webinars, and more.***
Additional blockchain market insights:
- The global blockchain services market generated between US$1.81 billion and US$1.83 billion in 2019.
- Government backing and strong legislative movements have propelled the Asia Pacific (APAC) region as the leading geography with blockchain network adoption. Europe is the second largest blockchain market, followed by Middle East and Africa (MEA), which has emerged as the next big growth hub. Legislative gridlock and lack of government interest will continue to keep North America lagging behind.
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.