The Blockchain market in 2022 was worth $11.02 billion. The demand for blockchain continues to increase because of several factors and by 2028, it is estimated that it may reach $265 billion. This rise is going to be a record in itself and soon blockchain may well become a prominent technology beyond the field of cryptocurrencies. It is therefore necessary to explore the factors that may cause such a huge rise in blockchain technology after just 5-6 years.
Growth Drivers of the Blockchain Market
The government policies are favoring the growth of the blockchain market. It is an undeniable fact that governments around the world are realizing the potential of blockchain to improve transparency, efficiency, and security. Although governments have largely implemented privatization, there are some sectors in which they still predominate. For example, land registration in Georgia is still a fully government-controlled sector. This will help in implementing blockchain in the land title registry. The project will help in supporting the land registry with the technology. Moreover, many governments are also trying to integrate blockchain technology into the fields of medicine, military, and banking. This automatically increases the enthusiasm among investors in blockchain.
Computerization in the 1980s and 1990s was responsible for digitizing a lot of important things in the world. Blockchain technology too has the potential to further digitalize and improve existing technologies. There is widespread hope that this technology may further cause digitalization in several industries such as real estate, e-commerce, and growing demand for services and applications. Since the use of cryptocurrencies is increasing, it may positively affect the blockchain technology market by causing digitalization in other sectors.
Ever-growing Volumes of Cashless Transactions
A growing number of countries are relying on cashless transactions. The blockchain technology has a huge potential to capitalize on this factor. This is because these networks represent transparent, peer-to-peer mediums for currencies. It can also reduce transaction costs. Earlier, most transactions, especially in developing countries, used to happen in cash. Now, that trend is changing dramatically. Blockchain technology can boost the expansion of cashless transactions in the financial network by bringing in hundreds of new nodes. This factor may amplify with the rise in cryptocurrencies.
Trends in the Blockchain Market
Some current trends indicate that the blockchain market will expand rapidly by 2028. Both people’s enthusiasm and investments are largely favorable.
Increasing Enterprise Investments
Many enterprise executives are interested in blockchain according to most industry analysts. It can support the creation of secure, effective, and efficient platforms for different business needs. Supply chain, easier verification, smart contracts, and record-keeping are boosting blockchain technology’s use.
Growth of DeFi
It is an undeniable fact that decentralized finance (DeFi) continues to widen and reshape financial services with the help of blockchain technology. Many financial institutions are now using blockchain because of its decentralization feature. This feature has a modernizing impact on the financial infrastructure. Blockchain technology will lead to real-time settlement and tracking.
Non-fungible Tokens (NFTs)
Blockchain technology is rising because of non-fungible tokens. It helps in creating new scopes for digital exchange and ownership. NFTs will become more popular and can represent real-world and digital items like real estate and artwork.
Blockchain as a Service (BaaS)
The integration of blockchain technology for business can be simplified because BaaS is becoming more popular. It may act as a catalyst that can lead to more adoption of blockchain technology. Similarly, BaaS can leverage cloud-based solutions to operate, host, and build their blockchain apps.
Collaboration between AI and Blockchain
Artificial intelligence (AI) is also a trending technology just like blockchain. There is a high likelihood that the two technologies will grow and converge soon. Both AI and blockchain can ensure better transparency, tamper-resistance, and security. The advanced analysis of AI and innovation can further improve blockchain technology.
The favorable trends and growth factors are likely to positively impact the blockchain market. Governments are already recognizing the immense potential of blockchain for better security, efficiency, and transparency. It is also true that many sectors are showing deep interest in blockchain technology. The optimism about blockchain combined with investors is also boosting the growth of the market. Digital identity solutions, financial inclusion, and smart contracts are some of the features that can boost the prospects of the blockchain market further in the future.