Blockchain in Finance
Blockchain: Shaping the Future of Financial Services
Insight: Emerging Technologies | Blockchain | Financial Services
Introduction
Blockchain originated in 2008, and since its inception, this technology has
significantly transformed the digital landscape. The financial services sector
contributes more than 32% of blockchain technology’s total investment, which
reflects the transformation in financial transactions and data security. However,
transactions and data security are not the only areas within financial services that appreciate the value created by blockchain technology; numerous other segments benefit from it. Statista, a market research organisation, predicts that the global blockchain market will reach $39.7 billion by 2025, up from $3 billion in 2020. Spherical Insights, another research agency, predicts a CAGR of 54.76% of growth in the global blockchain technology industry between 2023 and 2033, making its market size (est.) US $1340 billion by 2033. This significant increase
demonstrates the expanding importance and potential of technology across
industries. This article covers the fundamentals of blockchain technology, including its operating mechanisms, cross-industry uses, benefits, problems, and future developments. Whether you are a seasoned professional seeking valuable insights or someone just starting and trying to learn this disruptive technology, we hope our comprehensive coverage will provide you with meaningful insights into the blockchain. Besides, there are some misconceptions about blockchain technology, so we have curated a dedicated section to answer frequently asked questions, which we hope the readers will find helpful.
Key Takeaways
• The global blockchain technology market is projected to grow at a
CAGR of 54.76% between 2023 to 2033, reaching approximately $1340
billion by 2033.
• Blockchain safeguards security through decentralisation and
cryptographic techniques, providing transparency and immutability in
transactions.
• Blockchain streamlines cross-border payment by increasing efficiency
and reducing cost. It can reduce payments and transfers transaction
costs by 50% and increase transaction speed by 80%.
• Banking & Financial Services, and Insurance (BFSI) sector contributes
to more than 32% of the total investment in blockchain technology,
globally. Superannuation industry is also not left behind.
• Scalability is still a major challenge for blockchain. The decentralised
nature of the technology can lead to slower transaction speeds and
higher costs compared to traditional systems.
• Unclear regulatory policies in many jurisdictions creates uncertainty
and can hinder blockchain’s adoption.
• Blockchain, especially the PoW – Proof of Work system like
bitcoin, consumes a significant amount of energy, raising
environmental concerns.
• DeFi is transforming financial services by providing decentralised
alternatives to traditional banking
• Blockchain technology will generate $3.1 trillion in new business value
by 2030. This growth will likely be driven by increased enterprise
adoption, advancements in technology, and the development of
regulatory frameworks that support innovation while ensuring
security.
Conclusion
Blockchain technology offers significant benefits across various industries, from
financial services to real estate. Its ability to provide secure, transparent, and
efficient transactions makes it a transformative technology with immense
potential. Edwise Consulting share some reports exclusively on LinkedIn, so please feel free to follow their LinkedIn page if you like similar insights and industry reports.
About Edwise Consulting
Edwise Consulting, a management consulting firm, based in Australia has recently published a comprehensive article on Blockchain, outlining almost all its impact on the financial services and how blockchain has transformed the financial services.
You can visit to their website edwiseconsulting.com.au for the full article.
