The Blockchain Technology Market

Blockchain is increasingly being endorsed as the next big revolutionary technology after the invention of the internet, and is anticipated to disrupt and transform the landscape of both financial and non-financial industries.Although, the current outlook on the technology looks rather utopian, it does present an array of benefits which, if realized, can transform existing systems and have dramatic impacts on all participants in the value chain.

The report on ‘Blockchain Technology Landscape Analysis’ is a meticulous study of the construct of the blockchain ecosystem, industry stakeholders, emerging opportunities and challenges to implementing them. After a thorough analysis of the current trends, the market dynamic chapter includes the key push and pull forces that are expected to influence the deployment of the technology in the next ten years. Owing to the dependency of the market growth on the legal and regulatory framework, government initiatives and the role of start-ups, financial monoliths and consortiums, the anticipated value to be added over blockchain from different industries from 2015 to 2025 is calculated. 

A blockchain is a distributed database, based on the Bitcoin protocolthat records and maintains a list of allthe transactions taking place in real time. Blockchain offers users a host of advantages in comparison to legacy systems that are being used currently. Some of these benefits include but are not limited to elimination of third party intermediaries, creation of transparency, streamlining of due processes, protection from malicious attacks and internal and external cost savings. Consequentially, a multitude of companies across industry verticals are investing heavily to develop feasible applications of the technology as blockchain presents the opportunity of transforming the way business transactions are done presently. 

The report involves a mix of companies chosen on the basis of their research and development on blockchain and implementation of successful blockchain applications. The companies profiled in the report include Citibank, R3CEV, Factom, Colu, Nasdaq, Coinbase and Circle among others.

After the ingress of FinTech start-ups in the banking industry in 2014, blockchain is the next technology expected to revolutionize the financial industry and repair some of its fragility.  Blockchain is not only being recognized as the most significant technical innovation of the 21st century but is also being touted as the potential foundational element of the fourth industrial revolution. Innovators, entrepreneurs, established companies and investors are all acknowledging the vast potential of this futuristic technology. Venture capitalists are estimated to have invested over a $1 billion in 2016 to explore the new avenues that blockchains opens up. This is a two fold increase from 2014 when the investment stood close to half a billion dollars.

Financial institutions have been the front runners in the development of the technology and have already implemented few successful applications of blockchain ranging from private market trading platform released by Nasdaq, Inc. to cross border payment platform created by Ripple. The gross industry value added over blockchain in 2015 from cross financial services is estimated to be around $XX.XX billion, of which $XX.XX came from cross border transactions. Although this is only a meagre share of the $XX.XX trillion that are exchanged in international payments each year.

Other financial uses of blockchain are also being probed including those in insurance and trade and settlement, however, they are still in trial or pilot phases and are expected to be finalized by 2019. The tipping point for blockchain in financial services is expected to be in 2020, when the technology is anticipated to start witnessing global adoption across financial institutions.

The focus is now shifting to non-financial use cases of blockchain and over fifty start-ups have emerged in this space. Various commercially feasible implementations such as use in supply chain management, loyalty and reward programs, energy exchange, government document storage, real estate and health record storage are anticipated to start falling into place by 2020 and over XX.XX% of the GDP valued is expected to be added to blockchain by 2025. By 2027, the technology is expected to go mainstream, with major widespread adoption across all industries, especially public sector and government services.