To understand the blockchain technology market size, one must understand the concept and working of the same. Blockchain as technology helps in distributing information and data to different destinations without having to copy that information from the source. It is a decentralized form of technology which operates with multiple nodes which are practically impossible to backtrace. Blockchain does not follow the ethos of the internet (which has interconnected nodes), but rather operates on what is popularly known as the “alter ego” of the Internet- the Darknet. Blockchain technology was originally devised and innovated to facilitate digital currencies such as Bitcoin, however, the technology community of the world has found multiple other uses of this.
- “The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value,” say Don & Alex Tapscott, authors of Blockchain Revolution (2016).
- In simplistic terms, blockchain is a time-sensitive immutable record of comprehensive data sets which are managed through a cluster of computerized devices which are not owned by a single person entity. All these blocks of data are bound together through the use of cryptography.
Features Of Blockchain Technology Market
Due to the characteristic unmatchable and differentiated feature of blockchain technology, its market is enjoying a rise in popularity in developed as well as developing nations. Cryptocurrencies such as Bitcoin are also finding applications in plenty of spheres.
Areas Of Blockchain Technology Applications
- Cryptocurrencies and related fiscal solutions are currently being extensively used by banks and investment verticals. These institutions are also indulging in fostering research and development in blockchain technology in order to make operations and internal handlings more opaque and secure. The operations are also aimed at becoming selectively transparent and seamless using this technology. This is also employed in managing medical, financial and legal records in developed nations with high data speeds and more data managing centers. Online transactions, digitization of currencies and performing secure and opaque online payments are a few areas where blockchain is finding extensive use by organizations.
- The blockchain technology is expected to affect the use of physical banks which would find it difficult to remain relevant. The technology is highly automated now and is expected to eliminate physical structures of banks, credit agencies, as well as banking intermediaries, functioning as gatekeepers.
- Blockchain technology is also being used in venture capital funding, in simplifying business operations and in having more seamless investment possibilities. The creation and development of businesses are also further fostered by the right and innovative use of blockchain, which is further driving the expansion of the blockchain market.
Growth Factors Responsible For the Expansion Of The Market
- The demand for blockchain technology is increasing in order to improve financial services, to make consumer as well as industrial products, in domains of media, telecom, health, as well as in public sectors. This is generating blockchain-related jobs across the globe.
- Companies related to banking, financial services, and insurance (BFSI) sectors as well as merchants that have started accepting cryptocurrencies favor a diverse nature and quantity of money to flow in the financial system. This technology has the potential of finding more ways and roads in end-consumer services which demands e-transaction of money and a diverse list of contacts along with their demographics and psychographics.
- Blockchain aids in making efficient the process of settling financial transactions and in achieving goals of optimization by eliminating the requirement of financial institutions to authenticate the transactions being made. This checking of reconciliations prevents the duplicating of recordkeeping. All of this can be performed with minimal errors.
Challenges Faced By the Blockchain Market
- Blockchain technology is also known to reduce costs of operations in the segments of retail and supply chain. Retail and e-commerce industries are predicted to have a direct impact from the blockchain technology. These industry segments are making positive developments in harnessing efficiency through the use of blockchain technology. In spite of this, regulations on blockchain usage and the limited availability of human resources are challenging the rapid expansion of the blockchain market.
- Blockchain technology is also observed to face resistance in appealing to a large number of users on the spacially placed network. Crypto currencies such as Bitcoin as well as Ethereum, are basically a few of the most popular blockchain networks which experience delayed transaction speeds while at the time of expensive fees per transaction. This is also a factor affecting the delayed growth of blockchain influence and applications.
- The interface and the coded structure of blockchain technology is a developing technology. As a significant amount of data (which is not so important and significant to keep) is added at every transactional stage, movement from one webpage to the next becomes slow and heavy.
- A large number of governmental institutions are recognizing the power and influence of blockchain. Although this is a good thing towards including blockchain in mainstream operations, it also makes blockchain networks and networking subject to regulations and monitoring. Due to this challenge, users across the globe are trying to make the technology less detectable and relatively complex for an average user.
Case Study: Singapore-based Dating App Named Ivory Uses Blockchain Technology To Segment Audiences
Ivory is a mobile application developed out of Singapore. It operates on blockchain technology which segregates “members-only-dating-app” locals which are carefully identified on the basis of population. The users are connected to each other according to their likemindedness, and similarity of lifestyle and interests. Ivory has been featured on major outlets such as Fox News, ABC News, Tech in Asia, NBC News as well as Appendices. The app is presently targetted to the audience in the dating market of Singapore, however, it is strategizing to expand to other APAC regions too. Debut InfoTech Ltd is the technological partner of Ivory and has developed the interface and functional design for the app through a comprehensive matching algorithm.
Blockchain is an upcoming technology which can both benefit and harm society. While many experts associate blockchain with having a secure and safe transfer of money online, there have been some links to criminal activities as well. Blockchain providing major players include IBM Corporation, Safello, Chain Inc., and Circle Internet Financial Limited to name a few. With an expansion of the e-commerce market across the globe, blockchain technology is the new normal with innovations and restructuring performed every da