Analysts have revised downwardly their forecasts for European enterprise spending on blockchain development in the next few years due to the economical aftershocks of the COVID-19 pandemic.

In a report published on May 5, United States-based market inquiry firm International Data Corporation (IDC) said information technology expects the slowdown to exist temporary and unevenly distributed beyond sectors.

Prior to the crunch, IDC had forecast that European blockchain spending would be $1.4 billion in 2022, with strong growth of 58% compound annual growth charge per unit (CAGR) to 2023.

Carla La Croce, co-lead of IDC European Blockchain Exercise, explained that:

With depressed client demand, disrupted supply bondage, and widespread remote working, many companies are putting on agree innovative projects, including in blockchain, until at that place is more clarity nigh the hereafter.

The IDC now expects at that place to be a slight slowdown in blockchain spending, downwardly roughly 8% in 2022 in the European market place. Its revised forecast of $1.33 billion notwithstanding represents more sixty% year-on-year growth.

Post-pandemic, certain sectors could see increased blockchain adoption

In specific sectors, the IDC anticipates that the impact of the pandemic could, conversely, spur growth and wider adoption of the engineering science.

National governments' imposition of stringent lockdowns during the crisis continues to cause widespread disruptions to production, distribution and global trade. This exposure of the fragility of many supply bondage may drive enterprises to adopt new technologies that can make their supply management more resilient.

As Radoslav Dragov, co-lead of IDC European Blockchain Practice, has outlined, blockchain can mitigate the "needless opacity" that persists in most value chains:

It provides transparency and breaks down information silos while guaranteeing potent security and a single source of truth.

Complex applications such as the drove and analysis of healthcare data and online voting systems could also see unique benefits from blockchain, as the technology offers stiff data protection and privacy features and is resilient to tampering.

Applications such as e-voting will nonetheless require significant efforts to overcome the public's credible lack of trust in using online systems to exercise their autonomous rights, the IDC concedes.

WEF and IDC both see blockchain as a key tool for global value chains

Last month, the World Economic Forum published a new blockchain deployment toolkit designed to help governments, enterprises and organizations worldwide to develop more resilient value chains going frontward after the COVID-19 crisis.

Cointelegraph interviewed the co-author of the toolkit, Nadia Hewett, nearly the technology's potential to assist with the post-pandemic global economical recovery through innovative digitization of trade.