Grand View Research has recently revealed that the global blockchain market could grow from $10.015 billion in 2022 to $1.431 trillion by 2030. This will translate to a yearly average growth rate of about 87.7%. Another study by Cointelegraph noted that 90% of businesses are implementing blockchain, showing just how popular this technology has become.
Blockchain has moved far beyond Bitcoin and NFTs to quietly power some of the most innovative solutions across finance, logistics and other sectors. This surge in adoption is also reflected in how many people frequently track the Bitcoin price USD as a barometer for broader market sentiment. Of course, as blockchain technologies improve, their success sometimes influences price movements due to shifts in demand and supply.
From enterprise applications to defi-ecosystems, this technology is changing how businesses think about security, efficiency and payments. Take the IBM Food Trust network, for instance. By depending on blockchain, this network can reduce the time taken to track a food item in Walmart’s supply chain to seconds, as compared to days or sometimes weeks in traditional networks. But since that’s just the scratching of the surface, keep reading to discover more.
Responding to the prevailing need for improved security
Given that over 940,000 cyberattacks happen daily, seeing everyone attentive to their online safety makes sense. That’s why, as a serious businessperson, you don’t want to ignore this aspect, even for a second. Remember, customers have also become more security-conscious. A recent study by embryo.com highlighted that 85% feel the need to do more to protect their personal information online.
Therefore, it shouldn’t be surprising that many of them often survey platforms’ security before transacting. It only gets problematic if these customers perceive your brand as insecure because you may risk losing a significant portion of them to competitors. This could even be more serious if you’re involved in a cyberattack.
PCI Pal cites security incidents as the reason why about 83% of customers will have difficulties transacting with you for several months before regaining trust. Worse still, 21% may never return. Regarding financial costs, IBM suggests you may need at least $4.88 million to return to full operation after encountering cyberattacks.
To avoid some of these challenges, businesses are turning to more secure technologies like blockchain. By operating on a network of computers rather than a centralized server, this technology eliminates single points of failure, making it difficult to compromise the entire system. And once data is recorded, blockchain ensures it cannot be manipulated, ensuring the integrity of transaction records.
The fulfillment of the long-awaited instant payments dream
About fifty years ago, transferring funds instantly only seemed like a dream. There wasn’t a robust infrastructure to allow that. And this could be frustrating, especially if you needed to use the funds urgently. But over the years, things have changed, as you can now access and transfer funds quickly.
Looking at the statistics, Statista predicts that the use of real-time payment technology could increase by 289% by 2030. This is clear proof that many people actually love instant payments. Surprisingly, PYMNTs.com noted that 88% of companies cited faster payment options as one of the factors behind their growth.
Realizing this, businesses have been turning to blockchain technology to improve their relevance. With this technology, there’s no need for intermediaries, who often lengthen the transaction process. The use of distributed ledger technology also allows for real-time information sharing and reduces the need for reconciliation between multiple parties.
Regardless of your niche—entertainment, travel or fashion—you must cater to changing customer preferences if you are to stand out from your competitors. Brands that take this approach give the impression that they care about customer experience, which may lead to increased conversion and retention rates. As such, more companies may welcome blockchain technology to maintain their relevance in this age of instant payments.
The need for efficiency amid limited resources
Another practical driver behind blockchain’s projected growth is the growing demand for efficient, low-cost systems in a resource-constrained world. This is why smart contracts have been gaining traction. A recent survey by Fortune Business Insights discovered that the global market had already hit $2.14 billion and was on its way to reaching $12,55 billion in the next few years.
These self-executing agreements trigger predefined actions when certain conditions are met. They are another perfect example of how blockchain eliminates the need for intermediaries, reduces human error and slashes administration costs. At a time when everyone is aiming to operate sustainably, these features matter a lot.
It’s no wonder that companies, particularly in supply chain management, are opening their doors to smart contract technology. This comes at a time when businesses are losing billions of dollars to problems associated with traditional logistics systems, such as documentation complexity and settlement delays. Number Analytics reports that the amount lost to these problems can hit $300 billion annually.
But thanks to blockchain’s smart contracts, you can streamline your logistics systems and avoid these losses by implementing a single, trusted source of information available to all authorized persons in the network.
Considering all these benefits, Grand View Research’s prediction is likely to come true. Given the prevailing need for instant payments and secure interactions, more users and businesses could turn to blockchain as their new hope, expanding its global market.
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