Rangan emphasized, however, that while many potential use cases for blockchain have been widely recognized, “full products/services have not yet been built out and are not used in production,” leaving the technology’s capacity to generate real-world capital still unproven.
While BoA’s analysts refrained from putting “a time stamp” on the industry becoming a major, multi-billion dollar addressable market, they reportedly based their estimates on a ballpark figure that two percent of corporate servers would be used to run blockchain at a cost of $5,500 annually.
The Bank of America (BoA) has estimated that blockchain could be a $7 billion market and provide a major boost to corporate giants such as Microsoft and Amazon.
BoA research analyst Kash Rangan told news analyst that the technology is well-suited to some of the world’s largest corporations, noting for example that:
“Amazon will benefit from incremental cloud services demand from Blockchain implementation, while improved supply chain tracking should make Amazon’s retail operations more efficient.”
Rangan added that the innovation of distributed ledger systems could take so-called “software as a service” (SaaS) models to the next level by implementing “blockchain as a service” (BaaS). Rangan chose Microsoft’s popular blockchain-based Azure platform as a salient example, stating:
“BaaS on Azure offers services such as smart contracts and other third-party apps, and should benefit as a use of blockchain on Azure increases.”