Blockchain technology spending expected to reach $2.9 billion

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In just one year’s period of time, it is expected that the spending on blockchain technology will increase by better than 88%, reaching $2.9 billion by the end of 2019. This is expected to nearly double the amount spent in all of 2018, which was $1.5 billion.

According to the Worldwide Semiannual Blockchain Spending Guide, a publication provided by the International Data Corporation, it is expected that this nearly 100% increase in spending on the technology is only the tip of the iceberg. Blockchain technology clearly appears to be the direction that digital currency brokers, financial institutions, and banks as well as government agencies who feel it is the best method for securing transactions and user’s account information.

This has been seen in a number of high profile purchases and collaborations that have developed over the last two months. In early February, Coinbase, the largest digital currency exchange service in the world, announced that they had purchased Neutrino, a startup company specifically dedicated to developing blockchain technology.

On February 21, KT Corporation, the largest telecommunications operator in South Korea, issued a statement about their plans to develop a platform built using new blockchain technology that would allow for a more secure commercial network for clients.

Universities are joining major corporations in the development of this technology. The University of Singapore joined with Chongqing Jinwowo in the development of new blockchain technology and cybersecurity. The University of Edinburg issued a statement on the same day announcing an agreement with IOHK to create new R&D blockchain technology. This came days after the Tokyo Institute of Technology announced an agreement with a large technology company to develop new blockchain technology.

While the increase seems staggering, as they say, “You ain’t seen nothing yet.” It is expected by the year 2020 that the amount of money spent across the globe on blockchain technology is expected to reach nearly $12 billion. That is a 1000% increase in just four years period of time, an average increase of 73.2% per year.

The United States is expected to be the biggest player in terms of investment. It’s followed by Western Europe and then China. The fastest growth in terms of spending on this technology is expected to be Japan followed by Canada.

With digital currencies becoming a valued commodity and with financial institutions becoming ever concerned about hacking, blockchain technology is seen as the solution to protecting the various transactions and accounts that occur across various networks across the globe. With so much investment and so many active players involved, it is hoped that this will greatly enhance the amount of cybersecurity provided, leading to a superior blockchain network.