Bitcoin, the first cryptocurrency, started the blockchain era and enabled the digitization of the assets. Due to its endless application, it is now embraced by several other industries and businesses. It provides the ultimate solutions to the concerns of accessibility and security.
Blockchain technology is drastically transforming the use of the internet as well as revolutionizing the global economy. Furthermore, it is all set to disrupt the industries like banking and payments, supply chain management, cybersecurity, networking and IOT insurance, E-Commerce, and many other such sectors.
Here, this article explains the entire path of evolution along with a hidden potential of the technology with facts and figures.
When the internet was invented, no one thought it could connect people beyond geographical boundaries yet this happened in real time. Similar is the case with the blockchain technology. It was initiated by Stuart Haber and W. Scott Stornetta in 1991 with ‘cryptographically secure chain of blocks’. In 1992, these were incorporated with the blockchain technology in order to improve the efficiency and make a collection of several documents into one block.
However, blockchain gained significance only after the implementation of bitcoin by Satoshi Nakamoto. The domain name bitcoin.org was registered in 18th August 2008. Later, on 31st October, Satoshi Nakamoto published a paper titled Bitcoin: ‘A peer-to-peer Electronic Cash System’ transactions without relying on any trust.’ The bitcoin network came into existence on 3rd January 2009 when Satoshi mined the genesis block of bitcoin and was awarded 50 bitcoins. Today, Bitcoin is the most valuable cryptocurrency. Let's look at some of the past events associated with Bitcoin:
- If you had purchased Bitcoin worth $100 in 2011, your investment would worth around $2,053,278 in 2018.
- In 2009, every transaction of bitcoins took place in between Satoshi and Hal, Finney, a developer, and a cryptographic activist.
- The first real-world transaction of blockchain-based Bitcoin was made by Laszlo Hanyecz in 2010, where he paid 10,000 Bitcoin for two pizza.
- The first conference of World Expo was held in New York, NY in 2011.
- 2014 was the year where blockchain was separated from Bitcoin. Also, different aspects of blockchain started being explored and invested.
- In 2014, one bitcoin was worth a few hundred dollars.
- About $1.6 billion was invested in blockchain initiatives by many companies in 2016.
- According to Statista, the bitcoin index value rose from $449.33 to $20,000.00 in the two year period. (April 2016 - April 2018)
- According to Stacey Soohoo, research Manager at Customer Insights and Analysis, the challenges and benefits of Blockchain were realized by enterprises in 2017, so it is also known as the year of the experiment.
- According to Expandedramblings, there have been investments worth $1 million in blockchain projects in 2017.
Since the birth of bitcoin, a lot of companies including giants like IBM, Wal-Mart, and Visa to small startups have started deeply exploring the blockchain technology. 2018 is regarded as the crucial stage of this technology as enterprises are planning to make a huge leap from the proof-of-concept projects to full blockchain deployment projects.
Till date, the International tech community is certain about blockchain being an emerging and the most important tech innovation of recent years. It has already brought a seismic range of changes in the tech world by easier data access, fraud control, and digitization of every sector starting from financial institutions and banks to retail, manufacturing and services sectors.
- Currently, Blockchain mostly conducts transactions related to digital currencies. There are thousands of cryptocurrencies available. Bitcoin is still the most expensive virtual currency globally followed by Ethereum, XRP, bitcoin Cash and EOS.
- The cryptocurrency market is large enough to support hundreds of multi-million dollar projects.
- Recently, Blockchain technology worths around $20 billion out of $80 trillion which is around 0.025% of the global Gross Domestic Product (GDP). This is a very tiny fraction if compared with the immense applications of the blockchain.
- About 90% of banks in European and American are exploring the blockchain.
- Medici (formerly Let’s Talk Payments) ensures that almost 50% of the banks have already started working with technology to increase the transaction process using the blockchain.
- According to the Statista, as per the record of March 2018, 24 million Blockchain wallet users were recorded and the size of the bitcoin blockchain reached approximately 163 gigabytes in size. Here, the total number of bitcoins in circulation reached approximately 16.95 million.
- According to New Greenwich Associates Report: The financial services industry is spending about $1.7 billion per year on the blockchain industry.
- The American Medical Association reports that 4 out of 5 physicians in the US have experienced cyber attack and blockchain could be the ultimate relief in their case.
- According to New Greenwich Associates Report: one out of ten banks and other companies now reports blockchain budgets in the excess of $10,000,000.
Analyzing the current trend, it can be assumed that there will be a huge investment in blockchain technology throughout the future as several industries are spending heavily in financial services and manufacturing. Likewise, there will be the promotion of new applications for creating new revenue streams and parallelly work on improving the efficiencies of the existing operation.
Here, we can find out some interesting facts from different sources:
- The Global Gross Domestic Product (GDP) rate of blockchain is expected to increase by 10% by 2027.
- The World Economic Forum (WEF) identifies blockchain technology as one of the six megatrends that will outline the transition of a digital and connected world. It expects that the governments will start collecting taxes via blockchain by 2023.
- According to Expanded ramblings, the global blockchain market is expected to worth $420 billion by 2024.
- According to Allied Market Research, the global blockchain distributed ledger market is expected to touch $5,430 Million by 2023.
- The expected value of the global blockchain by the end of 2024 will be $20 Billion. Also, 58.7% anticipated the market of CDGR between 2016 and 2024.
- The global blockchain technology market is predicted to reach $339.5 million in size and is expected to grow to $2.3 billion by 2021.
- According to Nasdaq, by 2030, 15% of all global financial transactions will use Bitcoin or a Bitcoin-like crypto-currency.
- Gartner, a leading research and advisory company ,
- expects a large return on blockchain only after 2025. Gartner believes, by 2025 when blockchain reaches the plateau of productivity, the blockchain business to grow more than $176 billion and this values will exceed $3.1 trillion by 2030.
- states the growth reaches 120% in 2020 before dropping off to 27% in 2023 and again reaching at 104 in 2026
- shows that about 66% of the business leaders believe blockchain technology as business disruption and many of them have even set budgets. Similarly, 5% of them are willing to spend over $10 million in the blockchain technology.
- According to Mckinsey and Company,
- $400 million spending is expected from the banks on blockchain technology by 2019.
- Mckinsey believes Blockchain will reach its full potential in 5 years of time.
- According to a new IBM study
- one-third of the C-level executives consider adopting blockchain technology in their organizations.
- IBM is willing to invest about $200 million in blockchain-powered IOTs. IBM has even estimated to dedicate 1,000 of its employees for this IOT. About 90% of the North American and European banks are exploring this emerging technology. 9 out of 10 people agree that blockchain will be a new banking disrupter. The blockchain is expected to reduce the infrastructure cost by 30 %.
- 71% of active blockchain business leaders believe this technology will play a key role in advancing the technology and suggests widespread support for the industry standards.
- According to International Data Corporation (IDC):
- the worldwide spending on blockchain technology forecasts to reach $2.1 billion in 2018 which is twice as spent in 2017. IDC experts have predicted that the blockchain technology will spread rapidly over 2016 to 2021 with a five-year compound annual growth rate (CAGR) of 81.2 percent and total spending of $9.7 billion in 2021. Most of the investments in the United States will be in blockchain technology and it will cover about 40% worldwide. Similarly, Western Europe will be the next largest region after the states followed by China and Asia/ Pacific (excluding China and Japan).
- All the nine regions will face the phenomenal spending growth over a 2016-2021 period of time where Latin America and Japan will lead the path with CAGRs of 15.5% and 127.3%respectively.
To wrap up, Blockchain technology is here to stay. It is already surpassing all the other contemporary technologies and the buzzwords. And it is sure to reach the greater heights than ever before. Do you have any predictions on your mind regarding the future of blockchain technology? Let us know in the comment section below.