Why blockchain is not only about crypto and digital currencies
From storing data in a digital decentralised ledger to simplifying documentation, Blockchain has come a long way. According to the Business Research Company, the global blockchain services market is projected to grow from $4.7 billion in 2023 to $19.76 billion by 2027. “ Blockchain mostly remains a solution in need of a problem. There are inherent challenges for large-scale decentralization, particularly around cost and time, which prevent its adoption,” Utkarsh Sinha, managing director, Bexley, a boutique investment bank firm, told FE Blockchain.
One of the biggest advantages of Blockchain is that it facilitates traceability across the entire supply chain. Typically Blockchains store data in a digital decentralised ledger. As a result, it provides instant access to the status or authenticity of a product. Furthermore, smart contracts are yet another essential element of the Blockchain ecosystem. It is believed to simplify documentation such as licenses and certificates, among others. This reduces overall costs while eliminating reliability on third parties.“The Blockchain market is experiencing unprecedented growth and Web3 will help blockchain innovations to grow to $164 billion by 2029-30,” Pratik Gauri, co-founder, CEO, 5ire.
So far the role of Blockchain has been restricted to crypto and Blockchain payment systems including storing transactional data in peer-to-peer networks and eliminate the involvement of centralised authorities such as banks. But this too is expected to change. In case of crypto, Blockchain lowers transaction costs and enhances security. “I believe that Blockchain and crypto are complementary rather than competitive. Blockchain technology can be applied in various sectors, whereas cryptocurrency primarily functions as a digital asset. Therefore, we can see Blockchain and crypto as two sides of the same coin, working together to drive innovation and change across different industries, “Johnny Lyu, CEO, KuCoin.
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