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25/05/2019
Technology

Blockchain Spending by US Government to Grow by 1000% by 2022

According to the report of International Data Corporation (IDC), blockchain spending by the US government is going to witness an increase of a staggering 1000% by 2022. The statistics revealed that the US government spent $10.7 million on various blockchain related projects in the year 2017 and by the year 2022, this amount is expected to reach to $123.5 million. All these numbers are part of the Government Insights report which was published on April 18 by IDC.

The report also suggests that the adoption of blockchain technology is going to rise and along with it, various state and local governments are also going to increase their share of investment in open ledger technology. In 2017, the total expenditure by local and state governments was pegged at $4.4 million which is expected to increase to around $48.2 million by the year 2022. This translates into a similar increase of around 1000% which the agency is estimated in overall spending of the US government on the blockchain.

Further divulging the details, the report said that the various Federal Agencies in the government are likely to hike their blockchain related spending from the level of $20 million in 2017 to $80 million by 2022. The US defense department spent around $20 million on blockchain in 2017 and by the year 2022, this spending is estimated to be double at around $40 million, according to the report.

The federal government is going to expand blockchain applications in different areas as the current domain of blockchain application is quite limited in nature. Clarifying the prospects of using blockchain in different areas, Shawn McCarthy who is heading the research director position at IDC said that in the coming years, most of the blockchain spending will be centered on the asset management and identity management operations. The technology is already popular in the supply chain domain and in the coming years it is going to expand its wings in other areas with most of them centered on the financial management domain. The agency has identified strong prospects for the blockchain in the international trade and smart contracts where it sees this technology to be implemented as a standardized procedure for authorization of the transactions and other processes between the governments or other business entities. In terms of popularity, the agency predicts that hybrid kind of blockchain technology which includes both public and private blockchain Technology will be going to be more popular among the users rather than a purely public or private type of blockchain.

In an associated development, the US House of Representatives had also witnessed a demand to bring blockchain to enhance the transparency and accountability in the system. A minority leader in the house contended that the use of blockchain can help to improve the legitimacy of the legislative process. According to another separate report from the IDC, the Global spending on the blockchain is expected to grow to the level of $9.7 billion by 2021.

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