Global revenues for blockchain technology are expected to hit $10 billion by 2023.
Tech market advisory firm ABI Research published its findings regarding global revenues from blockchain technology on Aug. 28. Per ABI, investments in the space continue to swell despite the decrease in initial coin offering (ICO) activity, due in large part to venture capital (VC) funding blockchain infrastructure development.
Venture capital funding a major factor
ABI says that VC is catching up to ICOs as a form of funding, with 620 rounds totaling $3.1 billion last year, up from 153 rounds at $850 million the year before. ABI’s blockchain and digital security research director Michela Menting said:
Middleware class of blockchain applications
Despite strong revenue, blockchain applications outside finance and insurance are reportedly struggling due to the lack of a middleware class of blockchain offerings that can tie-in blockchain-as-a-service with applications from startups.
Still, ABI expects such offerings to start developing from 2021 onward, with platform-agnostic components in contrast to the current platform-locking services. Menting noted that she does not expect the crypto winter to have a lasting negative effect, saying: