Blockchain is the revolutionary database technology that lies central to nearly all cryptocurrencies. Distributing identical copies of databases across the entire network and utilizing blockchain makes it extremely difficult to hack or tamper with the system. While cryptocurrency is by far the most used application for blockchain, it has the potential to be used for many different applications. RationalStat expects that the global blockchain market will be worth US$ 2.8 trillion by the end of 2028.
What is Blockchain?
A blockchain is a kind that uses distributed ledger technology (DLT) which is comprised of a growing list of records, also known as blocks that are connected with cryptography. Each block has an encrypted hash of the preceding block, a timestamp, and transaction data.
The timestamp proves that the transaction data existed when the block was made. Since every block has details about the preceding block, they form the chain (compare the linked lists data structure), formed by each block relating to the one preceding it. Blockchain transactions cannot be reversed because once they have been recorded, the data contained in a particular block cannot be modified retroactively without affecting the subsequent blocks.
How do blockchain works?
Here’s an example of how blockchain technology records and verifies transactions.
- Consumers buy Bitcoin and Ethereum.
- Transaction data is transmitted via Bitcoin’s distributed decentralized system of nodes.
- Nodes confirm the transaction.
- Once approved, it is added to other transactions in a unison block. This is added to the ever-growing chain of transactions.
- The block that has been completed is encrypted, as the record of transactions is irrevocable. It cannot be wiped out or modified in the Blockchain.
Blockchain needs in different Industries
RationalStat is a market research company that has identified four issues that businesses and industries should ask before contemplating a blockchain-based solution:
- Do multiple parties require to be able to access comparable data and write directly to data storage?
- Do all parties require confirmation that the data is accurate and hasn’t been altered?
- Do you depend on an intermediary that does not provide value?
- Are there any good reasons not to have centralized systems?
If the answer to the above questions is “yes,” a blockchain solution might be a good idea. RationalStat also suggests that businesses consider thinking big but start with a small scale. Many industries and sectors are already changing by utilizing blockchain technology and have seen positive growth results.
Let’s look at the future application and potential market size of blockchain across different industries in detail:
- Blockchain Market in HealthCare: The golden hour of treatment is recognized across the globe in emergency care and calls for the acceleration of different methods like earlier detection of diseases, accessing medical records, and many more. The market has begun to believe that blockchain is an effective option and could make the blockchain in healthcare market reach US$ 1.2 billion by 2028.
- With a blockchain-based system, medical records can be linked to existing medical record software, allowing access only to those with consent from the patient.
- Blockchain-based technology can offer more rapid access to medical and healthcare professionals and facilitate the process of hiring by providing more transparency.
- Blockchain Market in Supply Chain: The global market and the macroeconomy are built on the supply chain in their underlying and keystone; however, to ensure it is seamless, businesses spend a fortune in the search for weak areas. Blockchain technology could help improve the situation through its transparent systems, and consequently, the global blockchain supply chain markets could be US$ 16 billion by 2028.
- Blockchain can assist in raising invoices by enhancing efficiency, security, and transparency and facilitating quick payment.
- Blockchain technology could increase supply chain efficiency by eliminating intermediaries, making it easier to verify records and transactions, and assisting in self-organized coordination.
- Blockchain Market in FinTech: Within the US and Europe, about 90 percent of banks have adopted blockchain in one manner or another. The advantages of blockchain technology, such as security, decentralization, transparency of transactions, and more, have driven this growth to the point that the global FinTech blockchain market could be worth US$ 35 billion by 2028.
- Blockchain’s transparency permits identity verification without divulging the actual identity. This can improve the KYC process.
- Blockchain manages and enhances the trading system by using generalized ledgers, which ensures that the flow of data is fast since it’s updated in real-time.
- Blockchain allows you to build your identity digitally instead of relying on the ones created by banks. Users can transfer money using digital avatars, exchange data, and carry out other banking-related activities.
- Blockchain Market in EdTech: The EdTech sector received a massive boost from investors following the COVID-19 epidemic. In the years since, this field is continually challenged by issues like latency and theft of personal data, as well as others. Blockchain is a viable option to address these issues, which is why companies have begun to incorporate it into their mainframe. The EdTech blockchain market could be US$ 250 billion in 2031.
- Blockchain is an ideal tracking solution, storing and utilizing students’ credentials, which learners and students can use to provide employers with their credentials.
- Smart contracts and IPFS could aid in the storage of course-related information and their access and make it easier to take the steps of automating courses.
- Blockchain’s distributed ledger system; you can simplify the process of completing transcripts and limit fraud claims.
- Blockchain Market in Agriculture: The introduction of IoT or AI in agriculture could reap benefits from blockchain’s security speed, transparency, and reliability. Additionally, due to the traceability of the food chain supply chain, this technology may aid in enhancing food safety. Blockchain technology in agriculture could aid in enhancing transparency regarding subsidies. Authorities can use public blockchains to channel contributions to the rightful farmers and also to track which farms are receiving the funds. Blockchain technology in the food and agriculture supply chain market could reach US$ 1 billion by 2025.
- Blockchain’s ability to monitor transport and storage can be utilized to identify vegetable and fruit waste.
- Farmers can make use of integrated platforms without intermediaries or intermediaries. They can also use the platform to establish the world’s largest trade union and boost their profit margins.
- Blockchain technology in agriculture could aid in improving the transparency of subsidies. Authorities can use blockchain technology to channel support to legitimate farms and track where the funds are being spent.
Investments over Time (Deal Count)
During 2022, spending on blockchain technology and solutions by industry/businesses is forecast to hit US$ 12 billion. It is important to consider that Cryptocurrencies like Bitcoin and Ethereum are underpinned by blockchain technology. There are more than 11,500 companies operating across the blockchain and cryptocurrency market across the world with a presence of nearly 16,800 investors.
Conclusion
In this article, we’ve reviewed the key points and the future potential that are a part of Blockchain technology. The technology is not restricted to just the financial industry; in fact, many sectors use it to safeguard your data from cyber-attacks and record their businesses’ transactions. With blockchain technology, the world could be turned into a tiny space. The current global crisis following the pandemic has also created an opportunity for remote blockchain job opportunities. Although it has many advantages, blockchain is still an obscure technology.
RationalStat can help you with the market and industry reports for blockchain and cryptocurrency with insights and market intelligence.