Blockchain technology is a decentralized software program that enables protected digital transactions of digital currencies such as Bitcoin. These transactions are recorded in the register from a number of computers. The register maintains a continuous set of data containing information about the transaction records without changing the transaction information. The data in the register is maintained in the form of lists, which are organized in Blocks for each time period. These Blocks consist of information about the transactions, and provide a reference to the previous Block, thus, linking the prior to the present. Block links to the prior Block to form a Blockchain. Generally, one Block contains the information about a set of transactional records for a particular period of time or fixed memory size.
Blockchain permits applicants to authenticate and review transactions. Blockchain-based transactions of value can be completed in faster way, more safely, and economically than conventional transaction systems. Rising popularity of these ledger chains has led to a significant increase in total capital investments in cryptocurrencies. As of December 2017, according to CoinMarketCap, a cryptocoin price market capital tracker, total market capitalization of the cryptocurrencies was valued at over US$ 500 billion from around US$ 18 billion in 2016.
Blockchain protocol has application in various segments such as Initial Coin Offering institutions, digital currency providers, blockchain stocks, peer-to-peer lender, banking, financial services, and insurance (BFSI), and information technology to perform digital transactions, securely. Owing to this factor, blockchain-based systems are increasingly being adopted by financial sectors including digital currency providers, banking, financial institutes, and insurance.
Blockchain technology can be used to build a permanent and transparent ledger system for gathering data on exchanges, real-time tracking of digital transaction and payments, and to prevent frauds and errors, are also factors expected to boost the blockchain market growth.
Additionally, some major applications of blockchain includes use in cryptocurrencies such as Bitcoin, Black coin, Dash, and Nxt and blockchain platforms such as Factom as a distributed registry, Gems of decentralized messaging, Storj and Sia for distributed cloud storage, and Tezos for decentralized voting.
Blockchain market Taxonomy:
On the basis of type, the blockchain market segmented into:
On the basis of application, the blockchain market segmented into:
- Asset Management
- Supply Chain
On the basis of end-user industry, the blockchain market segmented into:
- Banking, Financial Services, and Insurance (BFSI)
- Information Technology (IT)
On the basis of Region, the blockchain market segmented into:
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
The blockchain market is expected to be segmented on the basis of geography in North America, Europe, Asia Pacific, Latin America, Middle East and Africa regions. The market in North America is expected to be dominant in the global market, owing to rising awareness and increasing applications of this technology in various segments. For instance, U.S. Department of Energy is exploring the application of blockchain for the management of next-generation power grids.
Rising demand for e-Commerce in emerging economies of Asia Pacific such as China and India is another factor fueling growth of the market. According to Coherent Market Insights’ analysis, in 2016, China accounted for over 63% of digital buyers, followed by India and Japan in the region. Hence, Asia Pacific accounted for over 10% of the global retail e-Commerce sales in 2016. This is owing to increasing implementation and improving blockchain services in this region. Blockchain is used in e-Commerce for gathering data on exchanges, real-time tracking of digital transaction, and payments. Increased adoption and development of Bitcoin in China is expected to fuel growth rate of block chain market in Asia Pacific region. According to Coherent Market Insights, in 2017 the number of Bitcoin users in China were relatively high and over 80% of Bitcoin transactions were done in the Chinese Yuan.
Key players in this market are focusing on new application areas for this technology. For instance, in April 2017, IBM partnered with ASCAP and PRS for implementing blockchain technology in music distribution to improve data accuracy.
Key players operating in the Blockchain market include IBM Corporation, Microsoft Corporation, Amazon.com, Inc., SAP SE, Intel Corporation, Samsung Group, NVIDIA Corporation, Xilinx, Inc., AMD, Inc., Siemens AG, Accenture Plc, Advanced Micro Devices, Inc. and Infosys Ltd.
In January 2019, ConsenSys, a blockchain software company, announced entering in a new partnership with Advanced Micro Devices (AMD), a U.S.-based multinational semiconductor company, and Halo Holdings, the Abu Dhabi-based investment management firm, to develop an optimized blockchain-based cloud solution dubbed "W3BCloud" for the blockchain industry.
In October 2018, Infosys Finacle, part of EdgeVerve Systems Limited, a fully owned product subsidiary of Infosys, and R3, one of the fastest growing enterprise blockchain software company, announced collaboration on blockchain solutions. This partnership enabled banks to easily access and deploy the Finacle’s blockchain solutions on Corda, which is R3’s open-source blockchain platform.
In April 2019, Accenture and an insurance firm, Generali Employee Benefits (GEB), launched the first blockchain-based solution for the employee benefits (EB) industry to mitigate processing errors in the reinsurance process through smart contracts and automatic reconciliation
In November 2018, Amazon launched two new blockchain products know as, Amazon Quantum Ledger Database and Amazon Managed Blockchain, to help clients develop blockchain networks without incurring the costs of creating their own platform. Users can build blockchain platforms by using AWS’s cloud-computing services
In September 2018, Intel and software multinational company, SAP announced partnership on Enterprise Blockchain Development Initiative, which allows customers to integrate an enterprise and blockchain data using the pay-as-you-go model