By 2024, various branches of the market for blockchain solutions will generate revenues of up to $16 billion, shows the latest preview research by Global Market Insights.
Fintech Will Lead Market Growth
Financial organizations will be the driver of growth for the blockchain sector, predicts the research. Blockchain use cases are multiple within that space, and include the already growing market for international remittances. Blockchain can also help with identity, customer tracking, documentation, record-keeping and creating blockchain-based ownership of securities.
Within the blockchain space, decentralized finance is currently a growing field.
Beyond the initial investment based on voluntary fundraising, venture capital is also entering the blockchain space quickly, with multiple funding rounds completed.
The other promising segment is that of application creation. Global Market Insights predicts 85% growth between 2020 and 2024. Currently, the production of distributed apps is still relatively small-scale, and users are much less in comparison to mainstream apps.
The researchers expect to see a pickup in digital identity based on the blockchain. This use case has already been promoted by multiple crypto startups, such as Selfkey, Humaniq, and Civic, but so far, the projects remain small. Establishing digital identity would solve some of the problems of weak protection for personal data.
Healthcare use cases for record-keeping and insurance are also among the central applications expecting to nearly double their activity by 2024. As for growth regions, Asia Pacific expects the fastest pace of growth.
Predictions Range Between Conservative and Highly Optimistic
The $16 billion revenues are relatively small in this rather conservative study. Similar research predicts revenues of nearly $60 billion per year by 2024. But experts generally agree that after a decade in the dark, beleaguered by bad reputation, projects are finally seeing expansion as legitimate new technology.
Blockchain is not without its critics, with their chief message that for most use cases, there is no need to use this type of technology. But the experience of building decentralized communities drove giants like Facebook to explore the issue.
The eventual launch of Libra could add more than 2 billion potential users for payments through a digital asset. Also, building a network out of cooperating nodes is proving to be efficient in keeping a record of multiple users and identities, as well as record-keeping. More extreme predictions for the state of the market in 2024 see only the fintech side generate more than $280 billion per year, based on estimates by Accenture.
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