Financial services still the main industry testing blockchains as technology promises to ease transactions and reduce errors.
Business spending on blockchain is rising as more enterprises to leverage the technology in automating and streamlining back-office processes. But its value as a technology investment remains unclear with enterprises in a “trough of disillusionment” according to one blockchain expert.
A survey done by consulting firm Greenwich Associates shows that annual spending by financial services firms on blockchain rose 70% this year to $1.7 billion.
“The technology is demonstrating value and gaining traction,” said Greenwich Associates vice president Richard Johnson, who presented the results at a blockchain conference sponsored by the CFA Society of New York.
But the spending levels vary widely. Most firms are spending less $500,000 on blockchain, but about 11% of the survey’s respondents were spending $10 million or more.