Blockchain is expected to put in nearly $1 billion to the telecoms industry in the next five years.
According to a report on MarketWatch, global market research store Research and Markets has claimed that blockchain technology in telecoms would break through from just a $46.6 million industry this year to one that would be worth a whopping $993.8 million in 2023.
The report points to “rising security concerns” as one of the primary factors that is fueling the proliferation of blockchain, which operators consider as a potential safeguard in spite of its inconclusive regulatory status.
“The blockchain in telecom market is driven by various factors, such as the increasing support for OSS/BSS [operations support systems/ business support systems] processes and rising security concerns among telcos,” said an abstract of the report.
“However, growing concerns over the authenticity of users, and uncertain regulatory status and the lack of common standards can hinder the growth of the market.”
That regulatory doubt establishes part of a series of apprehensions that other corners of the global economy have made public in the past few weeks as part of what some have deemed as waning confidence in the benefits of the blockchain.
The banking sector has already expressed doubts about how the technology can bring forth mass innovation, while other projects seek to address concerns from businesses over its adoption.
Research and Markets appear undaunted by the mixed reactions, projecting an 84% compound annual growth rate (CAGR) for blockchain in telecoms.