IDC defines blockchain as a digital, distributed ledger of transactions or records. Distributed ledger technology (DLT) allows new transactions to be added to an existing chain of transactions using a secure digital signature. Exchanges of value are stored chronologically in an immutable system of records and are secured with a cryptographic technology that is so difficult to tamper with that trying to corrupt it is impractical. Comparing blockchain with traditional methods of recording transactions, the presence of single ledgers in the network is replaced by a distributed ledger, updated by participants as it allows new transactions to be added to an existing chain of transactions without the need for a central system, using a secure digital signature, and with high security standards guaranteed by the consensus model that validates information.
Blockchain spending in China was US$79.5 million in 2017, at a compound annual growth rate (CAGR) of 83.9% for 2017–2022 to reach US$1.67 billion by 2022. The blockchain use cases vary from cross-border payments and settlements and regulatory compliance to identity management, lot lineage/provenance, and transaction agreements, among others.
This IDC Market Forecast is based on IDC's Worldwide Semiannual Blockchain Spending Guide and provides a detailed blockchain market forecast breakdown by technology and industry in China. It also describes the key drivers and market dynamics that characterize blockchain.
"Many companies across a wide range of industries have started to understand blockchain and its potential to change the business world in 2018. We expect this interest in blockchain to continue in 2019 and the next three years," says Yu Xue, research manager, IDC China Blockchain Strategies. "As the seventh innovation accelerator in digital economy, blockchain is a great opportunity for many companies to transform inefficient processes into efficient and secure ones."