Description
The blockchain technology market consists of infrastructure and related distributed authentication and accounting technologies, poised to transform ICT and causing substantial disintermediation across a wide variety of industry verticals. Lessons learned in FinTech and traditional banking from the deployment and operation of decentralized authentication, clearing and settlement will be applied towards many telecom and computing problems for the benefit of many industry verticals.
Blockchain Technology Market Dynamics
The blockchain technology market impact will be wide-ranging (including everything from investing/trading to the legal cannabis industry) and very deep in terms of changes to supply chains and relationships between vendors, customers, and peers. For example, blockchain is being used in the fleet tracking market to identify care of custody and ownership of vehicles.
This assists to entire ecosystem, including fleet managers/owners, customers, and insurance companies. This will also help support a robust fractional usage/ownership value chain in which vehicles are used by multiple clients. In a related example, blockchain is also used in the general asset tracking market for similar purposes such as monitoring changes in ownership/custody of trailers that are often used by multiple semi-tractors as part of shipping operations and other logistics related industry verticals such as the autonomous vehicle market.
Investment in companies developing solutions for the blockchain technology market have amounted to $3.3 billion in the United States and over $23 billion globally since 2016. Companies focus on wide ranging solutions ranging from from decentralized finance to improved business practices such as smart contracts. Smart contracts are enforced in real-time through blockchain technology, eliminating the middleman and adding accountability for everyone involved, and saving businesses time and money. Industry verticals that are anticipated to leverage solutions in this area include government, healthcare, real estate, and the music industry.
Blockchain health data company, BurstIQ, solutions allow doctors and patients to transfer medical data quickly and securely. These smart contracts allow for personalized healthcare for each patient, and control what data can be shared. A company named Mediachain implements blockchain technology market solutions to provide musicians the money they have earned. Decentralized and transparent contracts allow artists to gain higher royalties and be paid on time. Blockchain technology market solutions for financial decentralization is a hot area with companies such as Bitpay and BlockFi raising $72.5 million and nearly $160 million respectively.
While overall growth in the blockchain technology market is clearly demonstrating long-term growth, investment is following three to four year cycles, generally coinciding with the value of Bitcoin and other cybercurrencies. It is important to note that not all cybercurrencies will impact the financial world in the same way as Bitcoin, which has inherent privacy, but also the downside of potential abuse. Accordingly, some sovereign state institutions, such as the People’s Bank of China, are planning to implement central bank-backed digital currencies. Such a currency is most assuredly not going to have anonymity as one of its tenents.
Distributed Ledgers and other Blockchain Capabilities are Rapidly Expanding beyond Finance to other Industry Verticals
Physical-to-cyber convergence is a very important part of the blockchain technology market as well. For example, tokenization solutions provide for digitization of real assets, allowing improved management and new business models such as fractional ownership. Integration and operation of blockchain technology will redefine how various industries operate, dramatically improving efficiencies, and reduce the cost of doing business. In combination with technologies from other areas such as the digital twins market, blockchain will make real-world to cyberworld convergence a reality.
For example, start-up companies have been launched to provide software and microchip hardware that facilitates connected devices to operate on blockchain. Products have been designed to encrypt data, distribute information to blockchain-connected machines, and monetize these machines. A company named Filament claimed in 2019 to be the only organization to provide embedded technology for blockchain transactions starting with the origination of data at the edge.
One important example of blockchain integration is the Internet of Things (IoT), which is a very promising area as Mind Commerce anticipates that the use of blockchain technology market solutions in IoT networks/systems will be one of the key means for authenticating and authorizing transactions. Along with various other IoT authentication market solutions, blockchain will provide enhanced privacy and security.
For example, HYPR provides solutions to reduce cybersecurity risks in IoT devices through its decentralized credential approach. Their products reduce the need for passwords in a centralized server, replacing them with biometric and other password-free solutions. This provides for IoT devices that are virtually un-hackable from a social engineering perspective.
We see blockchain-as-a service representing a key service offering for many market segments as a means of solution introduction and scalability via a cloud services model. In this model, blockchain will be used in conjunction with other technologies to transform entire industries. For example, AI in supply chain management solutions combined with blockchain technology market solutions to dramatically improve SCM. In the US alone, there are more than 500,000 shipping companies. This concentration of shipping and trade routes can cause data transparency and storage issues. Blockchain can solve these issues by providing data transparency.
Mind Commerce also anticipates substantial M&A activity in the blockchain technology market as deals such as Ping Identity acquisition of ShoCard become more commonplace as companies seek to fill their service and technology gaps. For example, block technology provides a certain means of authentication, authorization, and accounting. This may be used to complement other technology areas such as those found in the IoT authentication market. Other areas in which we see consolidation is the data as a service market and cloud computing infrastructure market as companies seek to gain vertical integration in data services and cloud solutions respectively.
Blockchain Technology Market Report
This blockchain technology market report examines the technology, leading companies, and solutions in the evolving blockchain ecosystem. The report evaluates current and anticipated use cases for blockchain and assesses the market potential globally, regionally, and segmented by deployment type and industry vertical for the period 2021 to 2026. The report evaluates key players, solutions, and use cases. The report also assesses the prospect of integrating blockchain with other technologies including IoT and artificial intelligence. The report includes detailed forecasts by use case, application, and industry verticals from 2021 to 2026.
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