Blockchain is a new application model of computer technology such as distributed data storage, point-to-point transmission, consensus mechanism, and encryption algorithms. Blockchain is an important concept of Bitcoin. Blockchain is essentially a decentralized database. At the same time, the underlying technology of Bitcoin, it is a series of data blocks associated with each other using cryptographic methods. The data block contains the information of a batch of Bitcoin network transactions, which used to verify the validity of the information (anti-counterfeiting) and generate the next block.
From a technological perspective, blockchain involves many scientific and technical issues such as mathematics, cryptography, the internet, and computer programming. The blockchain is a distributed shared ledger and database, which has the characteristics of decentralization, immutability, leaving traces throughout, traceability, collective maintenance, openness, and transparency. These characteristics ensure the honesty and transparency of the blockchain and lay the foundation for the blockchain to create trust. The rich application scenarios of the blockchain are based on its ability to solve the problem of information asymmetry and to achieve collaborative trust and concerted action among multiple subjects.
The global blockchain technology was growing at a substantial CAGR and continued to boost in the forecast period, 2020-2027. The increasing demand for faster and transparent transactions across the various industry expected to fuel the global blockchain technology market in the projected time. Blockchain technology does not rely on additional third-party management organizations or hardware facilities, and there is no central control. The demand for blockchain technology is based on its benefits, such as a reduction in duplicate recordkeeping, eliminate reconciliation, minimize error rates, and facilitate a faster settlement that will influence the global blockchain market.
Block Chains only use the general ledger technology of the blockchain for bookkeeping, for a company or an individual, and have exclusive access to write permission of the blockchain. The surge in various applications of blockchain includes energy sector in which it provides support for equivalent energy exchanges, sell the electricity produced to other customers quickly, or buy back electricity from traditional electricity producers or energy production consumers, would promulgate the global blockchain technology market size. The blockchain data is open to everyone, and anyone can query and develop applications related to the open interface. Blockchain has potentially great application value in financial fields such as international exchange, letters of credit, equity registration, and stock exchanges. Applying blockchain technology to the financial industry can eliminate third-party intermediary links and achieve direct peer-to-peer docking, thereby significantly reducing costs and completing transaction payments quickly.
Furthermore, the benefits of blockchain technology, such as creating transparency and immutability in the transactions, would be the vital factors projected to drive the global blockchain technology market in the upcoming periods.
The consensus mechanism is reaching a consensus among all accounting nodes and determine the validity of a record, which is a means of identification and a method of preventing tampering. The blockchain proposes four different consensus mechanisms that are suitable for different application scenarios and strike a balance between efficiency and security. The consensus mechanism of the blockchain has the characteristics of “minority obeys the majority, and everyone is equal. Everyone is equal means that when a node meets the conditions, all nodes have the right to put forward the consensus result first, which is directly recognized by other nodes, and may eventually become the final consensus result.
The transaction information stored on the blockchain is public, but the account identification information is highly encrypted and can be accessed with the authorization of the data owner, thereby ensuring the security of data and personal privacy.
Based on Product, the global blockchain technology market classified into Public, Private, and Hybrid. The Public segment projected to show the highest demand in the global blockchain technology market in the forecast period. It is owing to government intervention to initiate open and efficient transactions. Moreover, blockchain technology helps to improve the convenience of currency issuance and use in the field of cross-border payment and settlement. It also helps to realize point-to-point transactions and reduce intermediate fees.
Based on Application, the global blockchain technology market classified into Digital Identity, Exchanges, Payments, Smart Contracts, and Supply Chain Management. The payment segment is expected to boost in the forecast period. Owing to, speed up the transaction and improve the efficiency of the payment system is driving the demand for the blockchain technology market. Moreover, with rising adoption of blockchain technology helps in minimizing the time taken for processing the transaction, thus improve the growth of the payment sector.
Based on Component, the global blockchain technology market categorized into Application & Solution, Infrastructure & Protocols, and Middleware. The infrastructure & protocol provider segment likely to lead the market during the forecast period. It is due to, the rising demand for software building blocks in blockchain technology and the protocol help in constructing customized distributed ledger network.
Based on Enterprise, the global blockchain technology market bifurcated into Large-Enterprise, and Small & Medium Enterprise. The small scale and medium scale enterprises projected to show the huge demand in the forecast period. It is due to the adoption of machine learning, and artificial intelligence in their business as blockchain technology provides low-cost solutions and will lead to increase the productivity. Thus, SME will drive the demand for the blockchain technology market.
Based on Industry Vertical, the global blockchain technology market classified into Healthcare & Life Sciences, IT & Telecom, Manufacturing, BFSI, Energy & Utilities, Telecom, Media & Entertainment, Retail & Consumer Goods, Travel and Transportation and Government. BFSI industry expected to grow in the future and use blockchain technology in its products and services. Moreover, various financial institutions and key technology contributors that continue to increase technology investment will further improve the efficiency of basic business processes and help minimize risks.
Based on geography, the global blockchain technology computing market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia-Pacific region expected to become the fastest-growing region in the forecast period. Owing to this, the financial institutions will increasingly adopt blockchain technology to minimize operating costs and simplify business operations, which will become an essential factor for market growth in this region.
Companies such as IBM Corporation, Microsoft Corporation, Linux Foundation, R3, BTL Group, Chain Inc., Deloitte, Circle Internet Financial Limited, Global Arena Holding, Inc. (GAHI), Post-Trade Distributed Ledger, Ripple, Eric Industries D-Wave Systems Inc., and others are prominent players in the global blockchain technology market.
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By Industry Vertical