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How big is the blockchain market? 

How big is the blockchain market?

Blockchain is widely known for its role in cryptocurrencies, such as Bitcoin, Ethereum, and more recently, NFTs. The technology is relatively recent but continues to grow and outpace most others — due to its functionality, transparency, and ease of application. Business opportunities exist within this new and emerging blockchain market.

This article will have a quick look at the size, market dynamics, opportunities, restraints, pros, and cons of the blockchain market. 

Market Dynamics and Size

The blockchain market experienced explosive growth after the inception of Bitcoin, and it got even more prevalent when financial institutions started utilizing the technology for online transactions. 

The general consent to blockchain solutions achieved significant growth in popularity in the last 2-3 years for several areas of business demands, including payments, smart contracts, exchange of currencies, digital identity, and documentation.

According to research by Statista, the global blockchain market was estimated at $1.57 Billion in 2018 and is expected to increase to $163 Billion by 2027. The report predicted an annual growth rate of 68.4% within the specific forecast period. 

A number of the most important factors contributing to the growth rate of the blockchain market include:

  • Increase in venture capital fundings. 
  • The high adoption rate of blockchain solutions for financial transactions. 
  • Increased acceptance of smart contracts. 
  • Creation of digital identities. 
  • Use of blockchain solutions in cybersecurity and increasingly in government initiatives. 

Many startups have opted into various areas of this market and have begun to develop blockchain technology solutions. Some examples of these startups include Blockpoint, SpinSys, Symbiont, Neufund, CiveQ, Symbiosis Finance, and Genomes among many others. 

Click here to see how Symbiosis provides liquidity to every major blockchain, thus forming a blockchain metaverse.

Challenges and Limitations 

Blockchain solutions are based on a distributed ledger technology still at its infant stage. This dependence poses some questions for policymakers and national and international regulators.

Some regulators are still suspicious about the prospect of blockchain IoT technology because the overall technology cannot be controlled. Only its technological use cases, such as; smart contracts, payments, and digital identity, can be regulated. 

Other issues that pose concern are privacy, security, and control of blockchain transactions. 

Blockchains technology possesses the possibility of transforming and revolutionizing transactions, but companies have to overcome some privacy, security, and handling challenges to enjoy these benefits. 

Opportunities 

Blockchain has immense potential in various application fields, such as; cybersecurity, banking, IoT, and AI. 

The extensive use of IoT devices can be observed in various applications, such as; smart transportation, innovative city projects, smart grids, vehicular connectivity, autonomous vehicles, and smart homes. 

IoT devices are quickly growing at a significant scale, and many businesses are innovating new technology that integrates IoT devices. 

Trendy pioneers are creating blockchain solutions to produce a decentralized network of IoT devices, which would decrease the need for a central point to handle communication across devices. This technology is anticipated to enable devices to communicate directly, reducing the need for an external monitoring system. 

For example, an Israel-based blockchain startup provides a blockchain system for retailers to improve the general efficiency in handling the records of customers related to insurance papers, warranties, and receipts.

Wrapping up

With the competitive nature of the blockchain market and high investment by banks and other financial agencies, the blockchain industry has just begun its growth. 

So, how big is the blockchain market? Big enough to change the world.

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