Blockchain technology has been captivating headlines lately. While many think of it as a technology to trade cryptocurrencies, various other sectors have started incorporating it for enhanced processes. As time passes by, we see blockchain disrupting every sphere, from cross-border payments to supply chain and logistics monitoring.
Fact.MR reveals that the global blockchain technology is anticipated to garner a market value of USD 3,273.83 Bn while exhibiting a CAGR of 84% during the forecast period from 2022 to 2032. The growth prospects of the technology intensified during the COVID-19 pandemic since the world became dependent on virtual platforms to carry out daily business.
Blockchain are shared databases. It is a digital ledger of transactions that is distributed across the entire network of computer systems on the blockchain.
Increasing Venture Capital Funding in Blockchain Technologies
One of the most significant factors contributing to the growth of the Blockchain technologies market is the increasing venture capital funding in the technology. In May 2021, Circle Internet Financial Ltd. revealed that it had raised 440 Mn in funding from institutional and strategic investors.
As per Crypto Blockchain Industries (CBI), a French company that develops and invests in business applications relating to blockchain, reveals that the venture capital funding for blockchain startups reached USD 25.2 Bn last year, a surge of 713% against USD 3.1 Bn in 2020.
Growing Popularity of Crypto to Spike the Usage of Blockchain Technology
Pitchbook, a US-based Capital Market Company reveals that venture capitalists made magnificent investments in crypto start-ups in 2021, investing more than USD 27 Bn by late November.
The legalization of cryptocurrency in countries such as El Salvador and Ukraine has encouraged businesses to invest in technology. Further, the acceptance of cryptocurrency as payment by various companies such as Xbox and Paypal is projected to drive the market in the future.
Moreover, restaurants are entering into partnerships with cryptocurrency solution providers to offer cryptocurrency-based payments. For instance, Bakkt Holdings, LLC, announced its partnership with Quiznos in August 2021. The partnership enabled the customers of Quiznos to pay with bitcoin.
Initiatives to Integrate AI with Blockchain to Create New Opportunities
Several companies are making efforts to integrate AI with blockchain, which is expected to create lucrative opportunities for investors in the coming time. In September 2019, Signzy Technologies Private Ltd., a RegTech startup disclosed its partnership with Primechain Technologies, a renowned technology provider.
In another instance, Euler Digital acquires one hundred percent of the equity of the leading independent AI research platform, AI Forum. In the landmark deal, research and blockchain came together for the AI technology sector. Statista reveals that the total IoT-connected equipment across the globe is anticipated to reach USD 75.44 Bn by 2025.
North America to be the Most Fertile Region
As per Fact. MR, North America is expected to account for 36% of the global revenue in 2022. The growing popularity of blockchain as a service and the cheap cost of ownership is likely to escalate the growth in North America. As per the Pew Research Center survey, about 16% of the U.S population have invested or traded in cryptocurrency.
Growing awareness amongst the population and the increasing initiatives by the players is projected to make the region more fertile in the coming time. For instance, in Q1 2019, Amazon Web Services disclosed the launch of the Amazon Quantum Ledger Database (QLDB) and Amazon Manages Blockchain. The product was launched in the U.S market. The company has joined Blockchain in 2018 as a Service platform.
The aim was to help customers in testing the technology without the involvement of capital costs for implementation. In another instance, in 2019, Tata Consultancy Services, Microsoft Corporation, R3 Technology took initiative to develop a scalable cross-industry blockchain program for enabling end-users to offer seamless consumer experience and enhance business value.
Furthermore, government agencies in North America are developing artificial intelligence-based technologies to increase efficiency and cut down the operation expenses. In 2019, The US Department of Health and Human Services took an investment of USD 49 million in developing data-gathering artificial intelligence technologies to reduce operational costs.
In another instance, In April 2020, WHO collaborated with IBM, Oracle Corporation, and Microsoft to produce a digital ledger-based data platform, MiPasa. MiPasa has been designed to detect infection hotspots and COVID-19 carriers across the globe.
Growing Involvement of Key Players with the Technology
The players of the market are making efforts to offer efficient and distributed ledger solutions. The vendors are concentrating to develop digital ledgers to acknowledge security issues. For instance, in April 2021, Oracle Corporation launched Enterprise distributed ledger technology for financial services, healthcare, supply chain to fight against COVID-19.
In another instance, R3, IMDA, and Trames inked an agreement to escalate supply chain digitalization and global trade. The increasing launches of products by the established entities will offer various opportunities for expansion to the market in the coming time.
As the importance of blockchain is constantly rising, more companies will put resources into the technology, and the industry will expand. With several promising applications of blockchain technology, from crypto to smart contracts, blockchain technology is here to stay!