Today, many companies are already adopting Blockchain technology. Market and Markets reports that the Blockchain market size is likely to grow from last year's $210.2 mln to $2,312.5 mln in 2021.
Though Blockchain mainly targets banks, payment systems, and financial institutions, other companies have seen promise in the technology as well. Airbnb, Uber and Capital One are just a few of the major corporations integrating Blockchain into their systems. This move may make one chipmaker, Nvidia, some extra profit.
Why are they adopting Blockchain?
Right now, banks worldwide are prone to cyberattacks, hacks and malware, causing consumers to lose confidence in ATMs and credit cards due to the threat of identity theft.Financial institutions have also shown themselves to be surprisingly prone to losing customer data, and in the process, consumer trust. Blockchain technology aims to help lessen and combat such security concerns by helping to prevent identify theft and counterfeit transactions.
Former Ethereum lead developer Roman Mandelei shared:
“I think the identity hacking will be solved through Blockchain because if your identity is controlled by one private key that is saved by you personally, there is no way to hack it, or at least much less than in the traditional database systems.”
Shifting demand curve
Nvidia is perhaps best known for their consumer video cards, or GPUs, but the company is much more than that. In fact, enterprise GPUs make up a surprising amount of the company’s sales, with Microsoft, Amazon, and Google counting themselves among Nvidia’s large number of enterprise customers.
At its heart, Nvidia is a chipmaker. For Nvidia, the equation is simple: Blockchains run on computers, and computers require chips. Even better, Blockchains tend to run on custom computers, and Nvidia has a great deal of expertise designing and producing custom chips. The company has gained a great deal of notoriety--and increased profits--from their custom AI chips.
These chips are designed to run artificial intelligence tasks more efficiently than any other chip on the market. Nvidia’s stranglehold on the custom chip market is so great that even Google is struggling to compete with their custom tensor processing unit.
As Blockchain applications create demand for chips--particularly custom ones--Nvidia is well-positioned to take advantage of the coming boom. Blockchain adoption is presently in its infancy, but if current trials being held by numerous Fortune 500 companies end up being successful, Blockchain could be a major growth engine for the company.
With major firms like IBM and Samsung are already hiring more Bitcoin and Blockchain experts than ever before for their new initiatives, it seems like only a matter of time before Blockchain technology reaches the mainstream. Such a paradigm shift would certainly be beneficial for one of the world’s preeminent chip manufacturers: Nvidia.