future of blockchain

Security, connectivity, and transparency in Blockchain technology are promising a bright future. This technology can create opportunities and bring changes in several industries that operate online such as – cybersecurity, healthcare, banking, etc. Even in terms of job opportunities, one can find lesser competition in this field, resulting in a high-pay profile. Although the block and chain for data storage are in their infancy, yet effective, which is why blockchain has enormous future scope.

What Is Blockchain Technology?

Blockchain is a distributed ledger technology composed of blocks connected with chains for building trust, transactions, and tracking assets. Blockchain technology is more than just a way to transact or send cryptocurrency safely across the internet. It can be applied outside of finance, including artist royalties, voting, welfare benefits, healthcare, insurance, and insurance. 

Technology is already impacting society and business on many levels, and the world economy is getting ready for the blockchain revolution. If the word “revolution” sounds dramatic, consider that eight of the top 10 global corporations (IBM, Paystack, Ripple and Pyypl, AZA Finance, Securrency, ABRA, Numerai, and Bloom) are developing a wide range of blockchain-based products.

Future Of Blockchain Technology

One of the significant factors promising the future of blockchain technology is cryptocurrencies like ethereum and bitcoins. If we look at the stats, we’ll find that the most influential sector is Banking in terms of using blockchain. In 2020, the banking sector, which had a market share of approximately 30%, received a significant portion of the revenue from the global blockchain market. At the same time, 11.4% of overall blockchain spending went to process manufacturing. Overall, in the future years, spending on blockchain technologies will increase globally.

Global Spending On Blockchain 2021Sector Using Highest Distribution Of Blockchain MarketLargest Blockchain Use Case
6.6bn USDBankingCross-border settlements & payments 

Additionally, global spending on blockchain-related products is anticipated to reach $6.6 billion in 2021. According to projections, spending on blockchain solutions will increase over the next few years, close to 19 billion dollars by 2024.

Let’s look at the list of blockchain statistics you need to be aware of to better comprehend how this incredible technology will impact growth and the future.

The Blockchain Trends Supporting The Future Growth

1. General Market Of Blockchain

By 2026, the blockchain market, valued at $4.9 billion in 2021, is expected to have grown to $67.4 billion, according to Markets and Markets’ research of the market. The analytical team calculates that this will result in a Compound Annual Growth rate of 68.4% during the projection period.

Increased venture capital investment in the technology, together with the widespread application of the solution in banking and security, is what Markets & Markets believes to be the leading causes fueling blockchain’s spectacular growth rate. Blockchain technologies are being used more frequently by businesses and individuals for managing smart contracts and digital identities.

2. Financial Sector And Blockchain

About 30% of the market value for blockchain is attributable to the banking industry. Numerous markets, according to Statista estimates, stand to gain from having access to blockchain technology. 

The total market value of the technology, as of 2020, is currently accounted for by the financial market to a greater extent than 30%. Manufacturing (17.6%), distribution and services (14.6%), and the public sector (4.2%) are just a few of the technologies where the ecosystem’s value has started to permeate.

3. Healthcare And Blockchain

The global market size for blockchain in healthcare is anticipated to reach approximately $1189.8 million by 2028, according to a report released by Vantage Market Research in 2022. This reflects a 61.3% CAGR (compound annual growth rate) for the specified time.

According to the report, factors such as fake goods, openness in the healthcare industry, and healthcare data breaches contributed to the growth of the industry.

4. Agriculture And Blockchain

The agricultural and food industries will benefit from blockchain technology to the tune of $1.48 billion by 2026, according to a BIS Research analysis on the technology’s effects on various industry contexts.

Blockchain technology, which offers exact and impenetrable insights into inventory and food tracking, is described in the research as a revolutionary transformation for the food and agricultural industries. The analytics team claims that blockchain would assist in the storage of land documents and other data, ensuring food production is secure even in the event of natural disasters.

5. Manufacturing And Blockchain

The manufacturing sector appears to be one of the blockchain’s fastest-growing industries in recent years. The size of the global blockchain in the manufacturing industry climbed from roughly $49.50 million in 2021 to $85.64 billion in 2022, according to a report by Global Newswire.

This phenomenal rise entails a staggering CAGR of 73%. If things keep going this way, the Global Newswire experts predict that by 2026, the blockchain in the manufacturing industry will be worth about $778.05 million.

How Blockchain Technology Contributes To The Future Of Various Industries?

1. Networking And IoT Using Blockchain

To create a distributed network of IoT devices, businesses like IBM and Samsung are implementing Blockchain technology. The notion is referred to as ADEPT, and it seeks to eliminate the need for a central site. ADEPT coordinate communication between devices for tasks like error handling, keeping track of energy usage, software updates, etc.

2. Digital Advertising Using Blockchain

Because of the issues with digital advertising, such as bot traffic, a lack of transparency, domain fraud, ineffective payment structures, etc., promoters and publishers struggle.

It has been discovered that Blockchain can address these supply chain problems due to its transparency and dependability. Using Blockchain, advertising-related transactions can be managed more efficiently. 

3. Supply Chain Management With Blockchain

At each phase of the supply chain, blockchain can monitor employment, expenses, and releases while minimizing time delays and human errors. Blockchain can also guarantee the legality of products and the fair trade status of those products through traceability. Blockchain can potentially stop revenue losses from illegal or gray market goods and reputational harm.

4. Digital Currencies, Government, And Blockchain

In contrast to any other service or currency, the value of Bitcoin increased significantly in past years, and cryptocurrency is one of the most sought-after commodities on the market. Since the demand and supply fundamentals do not determine the value of Bitcoin or any other cryptocurrencies, the cryptocurrency demand will increase again. In this context, it is envisaged that governments will develop their own digital money and engage in free market trading. The future application of Blockchain technology possibly is this nation’s digital money.

5. Cybersecurity And Cloud Storage With Blockchain

Blockchain technology is effective for Cybersecurity as it makes the data secure and verified despite the fact that Blockchain ledger is open and distributed. It eliminates vulnerabilities like data tampering through cryptography. Along with this, cybersecurity with Blockchain technology works for cloud storage and makes it robust and secure against hacking, the risk of data loss, or human errors.

6. Finance Industry And Blockchain

Blockchain can address the flow and transaction of black money because of its transparent ledger architecture. Blockchain technology has consistently tracked financial assets, and because of this positive effect, several financial institutions have invested in it. Along with several businesses, governments are also considering using blockchain to have more efficient regulations over the countries’ economies.

7. Smart Contract

When someone buys a ticket, and re-sell it for the higher price, the primary seller doesn’t get the additional funds but the reseller makes extra profit. This case is slightly unjust to the actual owner. Thus, entrepreneurs are changing internet transactions with the help of blockchain technology. As long as tokens and smart contracts are in place, content producers will always receive fair compensation for their work. 

In a transaction involving services or intellectual property, such as music or movie, a smart contract can identify the contractual parties and any third parties who could have rights to the transaction. Additionally, issuers can incorporate regulations into the maintenance, usage, and transfer of such assets using a decentralized protocol centered on digital assets, such as the open-source Tari. Due to the immutability of blockchain, every transaction made during the asset’s lifetime complies with these specified restrictions.

An open source mobile ticketing app is already in the making. It aims to revolutionize the ticketing resale market for concerts and sporting events.

8. Digital Identity Solution And Blockchain

Solutions for digital identities give users peace of mind when interacting with others online. There is a company called Civic, a digital identification firm that provides identity verification solutions based on blockchain technology. Civic solution helps individuals, businesses, and other organizations manage and safeguard personal information. These solutions give enterprises and clients more control over how and where their identity information is shared.

9. KYC/anti-money Laundering (AML) And Blockchain

Regulators first viewed blockchain with a great deal of mistrust due to its role in enabling virtual currencies like bitcoin and its early associations with dubious entities like Silk Road and the dark web. Intrinsic features of Cryptocurrencies like speed, finality, cross-border capability, along with anonymity, among others, generated fears that they will appeal to money launderers and people who violate sanctions.

According to some, regulatory uncertainty regarding AML requirements, such as KYC, has restricted innovation among players. Ironically, because blockchain serves as a trustworthy repository for data, transactions logs, and identity verification methods, it may be the ideal option for meeting regulatory requirements. It is the financial industry that is experiencing the biggest disruption caused by blockchain technology. Regulatory uncertainty regarding AML requirements, such as KYC, has restricted innovation among players.

10. Cross-Border Transactions And Blockchain

Transferring wealth has traditionally been lengthy and expensive, especially when paying across international borders. As a result of the fact that currency exchange often requires the involvement of multiple banks in multiple locations, the intended recipient cannot claim their funds immediately after the currency exchange takes place. Although there are services out there to speed up this procedure, they are typically highly pricey. 

As a result, blockchain technology emerges as a potentially faster and less expensive replacement for current cross-border payment processes. Whereas typical money transfer costs may reach 20% of the transfer amount, blockchain technology may enable only a tiny portion of prices as well as guaranteed and real-time transaction processing rates.

There are obstacles to overcome, such as different regions’ regulation of cryptocurrencies and concerns about security. However, this is one of the most intriguing and talked-about applications for blockchain technology.

The uses of blockchain technology are extensive and extend across many sectors. It made tasks like Identity management, smart contracts, supply chain analysis, etc., easily possible. Most likely, full potential of blockchain technology is yet unexplored.

WrapUp!

The technology is at the height of its popularity even though it is still in the early stage. Investing in Blockchain technology now will benefit you in the long run. If you want to shine now when the competition is relatively low, Idea Usher, with skilled in-house blockchain developers, will assist you all the way. Our team excels in providing on-demand blockchain solutions at their best in the given time. Without a doubt, the advantages of blockchain technology are difficult to ignore. It will persuade businesses all over the world to invest more in it. 

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FAQ

1. What could be the future use of Blockchain?

Cybersecurity is where blockchain has the most potential in the future. Blockchain helps in data encryption using cryptography to remove vulnerabilities, making it secure and verifiable.

2. Can blockchain replace banks?

In all its functions as a medium of trade and a unit of account, cryptocurrency can quickly replace money. Furthermore, decentralized blockchain-based systems can take the place of banks. It can offer smart contracts, faster transactions, and higher levels of security at cheaper costs.

3. Will blockchain replace the cloud?

Decentralized ledgers have better technology than centralized ones. This will eventually replace centralized cloud-based solutions, much as the cloud replaced older enterprise applications.

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