Blockchain technology is all the rave right now, with startups looking to decentralize everything from money to voting rights to exclusive clubs. So, it shouldn’t come as a massive surprise to learn that some tech research firms are expecting blockchain revenues across the world to hit around $10 billion by 2023.
This news comes to us via ABI Research, who put together the study. What’s most interesting about the increase in blockchain development is that this is despite the drop off of initial coin offerings (ICOs) as of last year. It seems that institutional investors are still interested in the technology spawned by Bitcoin despite public funding rounds not being as prevalent.
“VC funding is catching up to ICOs, with 620 rounds totaling US$3.1 billion in 2018, up from 153 rounds at US$850 million in 2017,” reads the post. Then, Michela Menting, a Blockchain & Digital Security Research Director at the company, states:
“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.”
In addition, the company expects “middleware,” or blockchain software that isn’t financial or insurance-based, to take a step up as well, considering they haven’t been performing incredibly well due to a lack of revenue. “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,” says Menting.