In a new study published this week, International Data Corporation (IDC) forecasts “healthy four-year growth” for U.S. government blockchain spending. In fact, IDC analysts expect that spending to increase tenfold between 2019 and 2022, from the roughly $11 million spent in 2017 to more than $123 million by the end of that four year period.
That spending is expected to increase at agencies across the government, as officials move to embrace the new technology to improve transparency, accountability, and security. However, it is likely that government will adopt a more hybrid approach to the technology, rather than replacing all existing traditional data networks with blockchain.
IDC also forecasts expanding use of the technology over the next several years, to eventually include more sensitive and complicated areas of government concern. IDC Government Insights research director Shawn McCarthy said:
"We believe asset management, identity management, and smart contracts will be the leading blockchain solutions for government. Early spending will focus on supply chain and asset management solutions, while spending in later years will expand to include more identity management and complex financial transactions."