With an annual growth rate (CAGR) of 79%, the blockchain market looks to a bright future. This recent growth (2020-2021) is mainly due to companies resuming operations and adjusting to the new normal while recovering from the effects of COVID-19 that previously led to restrictive containment measures like social distancing, remote working and closure of commercial activities that created operational challenges.
Blockchain technology was not predicted to become so popular this year. Companies from various industries are showing a growing interest in using this technology to improve their business processes. The COVID-19 pandemic has accelerated digital transformation in many areas, particularly through the use of distributed ledger technology called blockchain. The market is expected to reach $ 60.2 billion at a CAGR of 97% in 2025.
Blockchain is preferred for its secure, secure, and transparent nature, which is driving demand for blockchain technology in industry and the public sector, and it is unlikely to decline in the years to come.
Companies like Circle and BitPesa use blockchain technology for international payments abroad. It has now found its use in the supply chain, healthcare, government and other sectors as well.
In Dubai, all government-related financial transactions take place using blockchain technology, making it the first government to operate with blockchain. In May 2019, Muzika, an online music streaming platform, partnered with Binance, the world’s leading crypto exchange, and a decentralized network to create a decentralized digital music ecosystem to help reduce the gap between musicians and listeners and the To give musicians the recognition they deserve.
Hence, the cross-industry demand for blockchain is expected to drive the blockchain technology market.
The inefficiency of scalability in blockchain technology hinders the blockchain market as it hinders the processes involved. The state of the blockchain network depends in part on the number of nodes on the network and the spread of those nodes around the world.
The larger the blocks, the faster the blockchain grows in size, eventually removing the solo miners, resulting in more transactions. For example, the scalability of Bitcoin is a problem resulting from a limited processing rate of transactions related to an increase in the number of transactions and the limited size of blocks.
In 2019, the blockchain size grew from 184.622 GB in 2018 to 242.386 GB. In 2018 there were 165,000 unconfirmed transactions in one week, which caused scaling issues due to a large number of transactions. Similarly, in December 2018, scalability issues caused the Cryptokitties app to overload the Ethereum network due to a six-fold increase in transactions with the release of Cryptokitties and lead to an accumulation of all unprocessed transactions. Thus, an increase in the number of transactions leads to scalability problems that inhibit the growth of the market.
The Blockchain Market Covered In This Report Is Segmented Into Private By Type; publicly; hybrid. It is also segmented by vendor in application; Middleware; Infrastructure and by applying to the BFSI; Telecommunications & IT; Government.
Federated blockchain, also known as consortium blockchain, is expected to be a major trend shaping the blockchain market or token system during the forecast period.
The decentralization is maintained by the prior selection of the authority nodes by the organizations in the network, which can continuously exchange the data or information. In 2019, Oracle Corporation joined the HyperLedger consortium and has a few dozen cloud blockchain applications running now.
In February 2019, Hyland, a US-based content service provider and software developer, acquired Learning Machine for an undisclosed amount.
Learning Machine is a start-up that offers blockchain login solutions that help customers by providing a platform for creating, issuing and reviewing contracts using blockchain technology.
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