As the use and adoption of blockchain, the underlying technology behind bitcoin, continues to grow in different sectors, the global market is estimated to hit around $30.7 billion by 2027.
The growth is triggered by the Coronavirus pandemic. As per the new report by Research and Markets, the use of cryptocurrency has grown by about 90.96% ever since it has started.
The global blockchain tech market size was standing at about $3.67 billion in 2020 and was projected to grow with a compound annual growth rate (CAGR) of 82.4% from 2021 to 2028, but due to different factors including lack of regulation and Covid-19 pandemic. The new CAGR is 43% that will trigger the global blockchain market value to overcome $30 billion in 6 years.
Worldwide acceptance is growing
The growing need for streamlining the business processes plus the need for effective supply chain management applications incorporated with the distributed ledger technology (DLT) will trigger high the value of the entire blockchain market. The skyrocketing worldwide demand for contactless or digital payment structures that depend on several parties to process transactions, is pushing the DLT’s market growth. This is because blockchain can be used in these systems to safeguard transactions.
The growing acceptance of Bitcoin and other DTL-based cryptocurrencies globally is one of the key factors fueling blockchain market growth. Major financial services such as both commercial and central banks globally are delving into the potential of blockchain for payment processing as well as using the technology to issue their own digital currencies including CBDCs.
Blockchain technology has been proven to enable cost-effective, transparent, secure and faster cross-border payments in comparison with the existing traditional payment systems. Since blockchain is an open, immutable, decentralized public ledger that can be easily accessed by participants in the network, the technology has grown to be one of the most promising tools in the information and technology (IT) domain.
Numerous use cases
Different companies, individuals or organizations are now using blockchain technology to achieve a couple of things. For instance, the technology can be used in applications such as anti-money laundering tracking systems, cross-border payments, secure sharing of medical data, supply chain and logistics monitoring, real-time internet of things operating systems, music royalties tracking, personal identity security, and many others.
Also, blockchain is being seen as an effective digital market platform. The European Investment Bank (EIB) is now planning to exploit the potential of DLT to sell digital bonds, and this will eventually increase the use of blockchain as a tool for the European Union (EU)’s debt capital market. The move follows the announcement by Christine Lagarde, European Central Bank President, revealing their plan to roll out a digital currency by 2025.
This is not the first time DLT will be used to perform a task of this type. In 2017, Automaker Daimler Ag sold $119 million of Schuldschein with the help of blockchain technology. In January 2017, Telefonica SA’s German unit deployed blockchain tech to raise a $238.8 million loan.
In September 2020, the Bank of Thailand (BoT), the Thai central bank, also rolled out a DLT-based system for the issuance of government saving bonds. In just one week, the BoT managed to sell over $1.6 billion worth of the government savings bonds.
DLT-powered platforms help to create more secure, transparent, effective mechanisms for issuing digital bonds. The applications for blockchain are endless and new uses of the technology are continuing to emerge every time. Generally, the future for blockchain technology is bright. What it needs is just being regulated to enable more blockchain-based innovations to flourish.