Ever since blockchain technology was introduced to the masses via Bitcoin in 2009, the technology has grown at an exponential pace.
Apart from its most apparent use in terms of cryptocurrency, blockchain technology and its associated distributed ledger technology (DLT) can now be found within several sectors. From financial firms to food chains, and from logistics to real estate, the innovative technology has offered significant solutions to an array of business segments.
Those who are associated with blockchain or who have given it a serious thought all agree that the technology has massive potential to grow and redefine how we perform our day to day processes.
When a study projected that the blockchain technology is all set to grow by a whopping 50 percent in a little over 5 years from now, it wasn’t all that shocking to begin with.
Blockchain Technology Market Report Projects Over 50 Percent Growth
While the report’s findings might not be shocking, they are certainly quite interesting given that the report had been published in June 2018 and has so far been quite in line with what it predicted through its research for blockchain technology growth.
In the Blockchain Technology Market Report, researchers deduced that the blockchain technology sector is all set to reach a staggering market value of $10.5 billion by 2025. That is more than 50 percent of where the market stood with $350 million in 2016: just a year short of a decade from the predicted growth period.
According to the research, the projected blockchain technology growth is to be supplemented by a vast array of blockchain applications and their growing use cases. The report points out that keeping in line with the current state of the industry, these use cases would be spread across a variety of business, financial and other sectors.
Conducted by BusinessIndustryReports, an India based market intelligence firm, the research outlines how different segments of blockchain technology would come together to provide an immense opportunity of growth to the industry.
The report projects how new use cases would be brought forward through continued innovation, which would help other industries fuel their own growth as a direct result.
But while it pays attention to new use cases, the report doesn’t overlook the existing use cases and their resulting sectors that are already operating within the blockchain industry.
The Report Presents Existing and New Sectors as Key Players in the Projected Growth
The existing market segments outlined by the report include but are not limited to cryptocurrency, blockchain-as-a-service, financial transaction support, identity management, data processing, and smart contract usage. All these sectors are currently contributing to blockchain technology growth in a very impressive manner.
Out of all these existing sectors and the ones that are projected to evolve out of the technology, the report singles out smart contracts as the technology to watch.
According to the research, smart contract development and utilization holds a large portion of the blockchain industry in its current form. The report further outlines that this specific segment doesn’t stop there in terms of its significance. It also has the power to sustain its status as the largest segment of blockchain technology in the future as well.
The report explains that this is possible due to how the blockchain industry is currently dominated by solution providers. In the form of independent developers, startups, and existing technology companies, these solution providers are utilizing smart contracts to a great extent, which is all in order to create new applications that support existing infrastructure or develop new process altogether.
And smart contracts serve as the heart of their operations.
How is the Smart Contract Technology a Key Player in Blockchain’s Success?
While smart contracts have been present in the core of blockchain technology ever since its inception, it wasn’t until Ethereum’s debut in 2015 that they garnered the attention of a larger user segment.
Since then, smart contracts have become integral to the development of blockchain based applications. They have shown their ability to automate agreements, execute functions, and perform tasks transparently. And these abilities have shown how crucial they are to the overall blockchain technology growth.
Due to these abilities, smart contracts are highly beneficial to almost every business sector, which could rely on these contracts to uphold agreements and execute functions that would otherwise take additional workforce, binding agreements, and added costs in order to be performed properly.
Therefore, most of the blockchain applications that are created in the current state of the market use smart contracts in order to automate their operations.
Smart contracts could be used as escrow accounts; they could be utilized as neutral executioners of certain agreements; and they could be used to perform tasks without the need for human intervention.
The report outlines that through the usage of smart contracts, blockchain technology has proven itself as a viable solution to industries including but not limited to finance, healthcare, education, retail, and logistics.
The U.S. is the Biggest Spender in Blockchain Development
The research also outlines that the technology will have the U.S. as its biggest market supporter in the next few years. Apart from the data collected by the report, this particular projection is also supported by third party data collation regarding blockchain technology growth.
Third party research also supports the report’s deduction that the U.S. has consistently been the biggest stakeholder in blockchain technology in the past few years. American investors have put in more than $600 million into the sector in 2018, and the spend is set to increase by $4.2 billion by 2022.
As the report outlines, some of the biggest names in blockchain do not only include startups dedicated to the industry, but large-scale conventional firms that are paying the utmost attention to the technology.
Some of the most popular firms that are paying attention to blockchain include names such as IBM, Microsoft, and Linux Foundation. Whereas, other firms that are solely dedicated to blockchain development through venture capital investments include Circle, Digital Currency Group, and Pantera Capital. Financial firms are not far behind, with JPMorgan and Goldman Sachs each looking into blockchain development through their respective operations.
How is Blockchain Development Supposed to Pan Out in the Next Few Years
According to the current market standing, blockchain technology growth is not limited to financial solutions. The technology is expanding into other sectors and improving their operations, and these demonstrations of its abilities are only going to help the industry garner the attention and investment that it needs from external markets.
As outlined by the Blockchain Technology Market report, the sector has its path set out for it. Through different innovations and solutions, it is all set to achieve consistent growth in a very tangible manner. What remains to be seen is how the blockchain industry is going to handle this growth, and whether it would be enough to let it breakout to the masses instead of being constricted to corporations alone.
The ZB Group realizes that there is a variety of problems and opportunities present within the blockchain sector. The ZB Group aims to solve problems with innovative solutions that help to meet and exceed consumer needs.
It is apparent that the blockchain industry will grow and penetrate more aspects of society in unique and transformative ways, the ZB Group will adopt and accelerate it in an effective and feasible manner.
Learn more about ZB Exchange by visiting www.zb.com.
About ZB Group
ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.
ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank, as well as exchange brands ZBM, ZBX and Korea’s Bithi.
Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open source their reports and analysis for the public.