The emergence of blockchain technology has been a boon for many industries and businesses globally. Blockchain’s game-changing distributed ledger technology (DLT) makes transactions secure and enhances data protection substantially. Further, blockchain is at the core of the crypto industry. Bitcoin, the largest crypto by market cap, is a byproduct of blockchain. The global blockchain market size stands at $4.93 billion in 2021 and is expected to reach $227.99 billion by 2028. Widespread blockchain adoption is fueling this staggering growth. Blockchain has evolved from a mere concept to a full-fledged industry.
Widespread Use Cases Of Blockchain
From supply chain to banking, and finance, the real-world use cases of blockchain continue to rise. And so does the market size of the blockchain. Blockchain is a game-changing technology that serves different purposes in different industries. One of the biggest advantages of using blockchain in businesses across industries is smart contracts. Smart contracts are digital agreements that trigger pre-defined events, enabling automation of operations. Hence, blockchain is proven to save time, effort, and resources by replacing manpower with automation. This helps businesses in boosting overall efficiency and eliminating the loopholes across processes.
The application of blockchain beyond finance has been a revelation. However, finance remains the biggest playground for finance. Trends like decentralized finance have revolutionized global finance. Cryptocurrencies, which are one of the very first use cases of blockchain, spearhead the digital movement in finance. As a result, blockchain promises financial freedom while putting people in control of their money. It seeks to streamline the functioning of financial institutions globally by enhancing the efficiency of operations.
Blockchain In Supply Chain Management
We are witnessing a global supply chain disruption. Thanks to the Covid-19 pandemic and the economic crisis brought by it. While the involvement of so many intermediaries makes supply chains extremely intricate, pandemic-induced events add to the pain. Blockchain emerges as a potent solution to supply chain problems globally. The involvement of so many intermediaries is a major reason behind the inefficiencies in supply chains globally. Blockchain effectively replaces these intermediaries with automated workflows, eliminating the inefficiencies effectively. Moreover, it also plays a critical role in the automation of supply chain operations. Leading companies such as Walmart, FedEx, UPS, and IBM are using blockchain to transform their supply chain. Soon, smaller players will adopt blockchain too.
How Blockchain Is Redefining Real Estate Investment?
Real estate is one of the most lucrative and high-performance sectors for investors globally. However, big players have some sort of monopoly when it comes to investment in real estate. The high prices of properties globally make it virtually impossible for common people to invest in real estate. Blockchain effectively solves this problem through a concept called real estate tokenization. Real estate tokenization is a concept where users can invest in tokens representing a physical property. This gives birth to another great concept called fractional ownership of a property. Thus, blockchain ensures the participation of a wider population in real estate investment. Several blockchain-powered startups are offering tokens attributed to real estate to investors.
Blockchain In Gaming
Gaming has to be one of the biggest beneficiaries of blockchain technology. The gaming sector is the tipping point for the mass adoption of blockchain. Starting from zero, the blockchain gaming industry skyrocketed to $3 billion in 2021. By 2025, the blockchain gaming industry shows the potential to grow to a whopping $39.7 billion. Thanks to the trends like NFT and Metaverse. NFT continues to transform online gaming by rewarding contributors with digital collectibles. NFT is the driving force behind the rise of online gaming as a major income source for professional gamers. Projects like Sandbox, Axie Infinity, and Decentraland have zoomed exponentially, riding on the wave of blockchain gaming. Traditional gaming giants are also set to jump on the blockchain bandwagon to make the most of the rally.
Growth Outlook
2021 was a breakthrough year for blockchain with several governments and big companies adopting the technology in some way or other. This adoption was a result of the realization of blockchain’s true potential. The blockchain industry is set to grow to $227.99 billion by 2028, registering a CAGR of 72.9%. But if the adoption of the technology continues at a steady pace, it could surpass all the forecasts to register a record-shattering growth.
Blockchain funding surged to $25.2 billion in 2021 from merely $3.1 billion in 2020, marking a 713% year-over-year growth. NFT, DeFi and Metaverse dominated blockchain funding trends and continue to do so. In 2021, funding in NFT startups surged by nearly 13,000%. Decentralized Finance (DeFi) is another booming sector that attracted a major chunk of global blockchain funding. In the coming years, emerging trends like Web3.0 may dominate growth trends and funding trends. We are talking about exponential growth rates in sectors across the blockchain industry along with real-world adoption. It is a great time for investors and innovators to make the most of the boom in the blockchain industry. Institutions and governments must look beyond the financial aspect of blockchain to benefit from the technology’s adoption.