According to a Gartner report, blockchain’s economic turnover globally is likely to reach over $3 trillion by 2030. Another market analysis conducted by PWC shows that blockchain has the potential to boost the global GDP by $1.76 trillion within the next decade. It is safe to say that blockchain technology is changing the ways of conducting business, transforming and reforming the traditional methods.
It has been a reckoning force that has disrupted all major industries in its wake, leaving a lasting and positive impression on trade finance, logistics, customs clearance, and transportation. It is an exciting time for crypto and blockchain development, and future possibilities are endless.
The recent market study takes into account blockchain’s top five use cases, ranking the same by the potential to create economic value, and assess the ability of the technology to generate value across sectors, starting from government and healthcare, to finance, manufacturing, retail, supply chain, and logistics.
A Blockchain Overview
Blockchain was initially created to be a distributed and decentralized ledger for Bitcoin transactions within the Bitcoin network.
A distributed or decentralized ledger or database means that servers with the stored ledgers are not linked to a centralized processor. The blockchain comprises the ever-evolving list of transactions in the form of blocks. Each block with a transaction record is time-stamped. It is then linked to the block created prior to it, and together they create the blockchain.
Users or participants can only edit those parts of the blockchain that belong to them. The user will require private keys, which is like a password to make changes. Every copy within the blockchain is synchronized even though it is not linked to a central processor. Any new entry or edit of a file within the blockchain cannot be changed without consensus, and each activity gets recorded indefinitely, without the risk of tampering.
Now coming back to the market report of blockchain’s impact on the global economy, it suggests a tipping point in 2025 due to the fact that the technology is getting accepted and adopted at a large scale across industries impacting the global economy.
- The provision of tracing and tracking of goods and services, its provenance, which has emerged as an utmost priority for most enterprises and supply chains in the wake of COVID-19, has generated a significant economic potential equating $962 billion. The application of blockchain can be as wide-ranging as its support varying from the heavy industries, which include mining, to the retail luxury industry like fashion labels, and even art, as a response to the consistent public/investor demand and scrutiny concerning ethical sourcing and sustainable sourcing.
- The financial services and payments processing sector, including cryptos and tokenized digital assets, remittance, and cross-border payments, all come together to reach the $433 billion mark.
- $224 billion by the ones involving identity management, including professional credentials, personal IDs, certificates to prevent identity theft and fraud.
- The use of blockchain in smart contracts and for dispute resolution generates $73 billion. Add another $54 billion for customer engagement, which includes blockchain-based loyalty programs.
The account above details the extent to which blockchain reaches out with its market influencer potential serving the integral needs of an extensive range of both public and private industries. Nevertheless, the success of blockchain depends on a supportive regulatory compliance environment, a smart and digitized business ecosystem, which is ready to take the chance and explore new opportunities that open alongside blockchain disruption.
Global Economic Benefits
If we have a run-through of the global economic impact, under most likelihood Asia will benefit immensely from the economic point of view, through blockchain. If we tally the numbers individually, then blockchain is likely to have the most potential net benefit in China, with $440 billion followed by the USA with $407 billion. Japan, Germany, the United Kingdom, France, and India, are the other five countries on the list with an estimated net benefit of over $50 billion from the blockchain impact in the days to come.