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Blockchain Industry Statistics & Facts

Updated: 16 Jul 2021

The blockchain technology that makes cryptocurrency trading possible is without doubt an opportunity to revolutionise the way things are done. Publicly distributed blockchain has so much potential that the system which initiated it Bitcoin, has seen the value of one Bitcoin increase in value from a few dollars in 2009 to $20,000 in 2017.

Blockchain services are not only limited to bitcoin and other cryptocurrencies, the benefits of blockchain technology include an increase in the transparency of data management and reduced fraud. The growth potential of each blockchain system, the ability for them to develop other uses, can have a significant impact on the price of the crypto tied to it.

With big data projects, the devil is certainly in the detail, and these blockchain stats will help you get a better understanding.

Top 5 Blockchain Statistics — AskTrader’s Choice

  • Global blockchain market size is forecast to grow from $3bn in 2020 to $39.7bn by 2025
  • Worldwide spending on blockchain solutions is expected to reach $15.9bn by 2023
  • Every single day, 299,733 Bitcoin transactions are made on blockchain
  • 4. Assets worth more than $270bn are being managed by distributed ledger technology
  • Investment in blockchain is increasing by 75% per year

General Blockchain Industry Statistics

1. Investment in blockchain technology is picking up speed

All new ideas face some degree of natural inertia, but reluctance to the adoption blockchain is waning. The numbers speak for themselves and worldwide spending on blockchain solutions is expected to grow from $1.5bn in 2018 to an estimated $15.9bn by 2023.

Money talks, and it’s currently saying, ‘get on board the blockchain project’.

Source: Statista.

2. The volumes of trades processed proves that blockchain works

The growth is built on solid foundations. Back in 2017, blockchain technology had managed and distributed more than $270bn in transactions. Research from Gartner says that 300 million blockchain transactions were processed through the end of 2017.

The numbers are continuing to grow, and bitcoin is by no means the highest volume blockchain platform. But, by the end of the second quarter of 2020, there were 299,733 bitcoin transactions recorded daily worldwide.

Source: Fool / Gartner /Statista.

3. Revenue forecasts for blockchain technology are improving

The inflows of hard-earned cash are little to do with experimentation in vanity projects. The potential for profits is backed up by forecasts, which suggest that the global blockchain technology market is estimated to accumulate $20bn in revenue by 2024.

Source: Tech Jury.

4. The capacity for growth is really exciting

If $20bn annual revenues in 2024 sounds good, then consider how the growth could be bordering on being exponential. Statista predicts that blockchain technology revenues will be over $39bn just one year later (2025).

Source: Statista.

5. Trust is still an issue in terms of adopting blockchain technology

In a survey carried out by PwC, 45% of executives believe that blockchain adoption is delayed due to a lack of trust. A deeper and broader understanding of how blockchain works can be expected to bring this number down. It is a revolutionary technology, after all.

That won’t be the last obstacle that blockchain faces. Regulators and vested interests will still provide a challenge to adoption of blockchain technology.

Source: Spendmenot / PwC.

Blockchain Startup Statistics

1. Blockchain startups are getting support from the established tech giants

One of the promising blockchain trends of 2020 is BaaS (Blockchain As A Service). This cloud-based service allows users to develop ideas using blockchain and specifically tools called smart contracts and decentralised applications (Dapps).

The potential for this sector is reflected by the support provided by the big players in the IT space. These include Microsoft and Amazon.

Source: BBVA.

2. Blockchain startup funding is rising in its billions

The list of blockchain companies shows there are over 11,500 startups. Overall funding of nearly $10bn has been placed with approximately 1,500 of those companies.

Source: traxcn.

3. A surprisingly small percentage of software developers work on blockchain projects

The total number of blockchain developers in 2018 was estimated to be approximately 105,000. This is a very small percentage, of the total number of software developers in the world, a number estimated to be 18 million.

The countries with the most blockchain developers were US (28,000) and India (13,000). Around 8,000 of the developers from those two countries were thought to be working on rthereum platform projects.

Source: dappros.

4. ‘Soonicorns’ not Unicorns

Industry site Tracxn reports that there are currently no blockchain ‘Unicorns’ — startup firms with a valuation of over $1bn.

A group of firms with multi-million-dollar valuations is forming. Dubbed the ‘Soonicorns’, firms in this space include, Circle ($246m) Figure($228m), DFINITY ($163m) and Paxos ($96m).

Source: traxcn.

5. There are more than 30 blockchain startups that have listed stock

Not all of the blockchain startups are privately held. The firms, Cryptanite, DigiCrypts and Security Matters have listed stock. This not only means they are moving to the next stage, but that external investors can take a stake in their projects.

Source: traxcn.

Blockchain Adoption Statistics

1. The reasons for adopting blockchain technology are clear

Throughout history, cutting out third-parties can help reduce costs and that is a particular advantage for blockchain. Tech Jury estimates that blockchain can reduce 30% of banks’ infrastructure costs. This converts to annual savings of up to $12bn a year for those companies.

Source: Tech Jury.

2. The finance sector is still the ‘early adopter’ of blockchain technology

The finance sector still accounted for over 60% of the market value of blockchain worldwide in 2018.

In that year, approximately 90% of US and European banks, and other financial institutions, reported they had begun exploring the adoption of blockchain technology.

Source: Statista / Fortunly.

3. The rolling out of blockchain technology to other sectors is building momentum

There are a lot of non-finance companies that use blockchain. Manufacturing now accounts for 17.6% of the market share. Distribution and services account for 14.6%, public sector 4.2%, and infrastructure management 3.1%.

Total spending on integrating blockchain into healthcare is forecast to rise to $5.61bn by 2025.

Nearly every industry has adopted blockchain tech to some extent.

Source: Fortunly / Tech Jury.

4. This year could be a big year in terms of firms switching to blockchain processing

Around 60% of CIOs are on the verge of integrating blockchain into their infrastructure by the end of 2020.

Source: Tech Jury.

5. The breakdown of those involved in blockchain might (or might not) surprise you

Blockchain is playing up to IT stereotypes, and more than 90% of people engaging in bitcoin are men.

A slightly more curve-ball style blockchain statistic is that the FBI owns 1.5% of the world’s total bitcoins.

One of the appealing factors of Bitcoin is, after all, the anonymity it provides to participants.

Source: Tech Jury.

List of Common Blockchain Applications

1. Ethereum

Ethereum is closely associated with Smart Contracts, which offer a new way of managing agreements. Smart contracts are digital and are embedded with an if-this-then-that (IFTTT) code. This means the terms of any agreement and the execution of it are bound together. Parties are unable to renege on terms if a deal doesn’t go their way.

Source: Block Geeks.

2. Acronis

Acronis is already offering business and individual clients the option of storing data using blockchain technology. Millions of files have already been stored. Storing data on centralised servers can be dangerous since they are vulnerable to hacking, human error, and a variety of data loss risk. Blockchain files cannot be tampered with and their authenticity can be publicly verified.

Source: Acronis.

3. Kaspersky

Uncertainty about the integrity of the one-person-one-vote system could be solved using blockchain. Operating elections using an open ledger would reduce the risk of fraud since votes would be encrypted. Private individuals can confirm that their votes were counted and confirm who they voted for.

Source: Block Geeks / Coin Telegraph.

4. Quorum

Quorum is a version of the public ethereum blockchain, which has been developed by JP Morgan Chase. Its code makes it more robust and blue-chip backers are always a good sign.

Source: Data Science.

5. burstIQ

A health-focused enterprise enablement and global network. It connects businesses and people through the power of blockchain

Source: Crunchbase.

List of Biggest Blockchain Companies

1. ScienceSoft

Founded in 1989, but now with more than 700 employees and annual revenue of $25m. This Texas based firm offers a one-stop-shop for those looking for blockchain services including consultancy, development, testing and training.

Source: Software Testing Help.

2. Prolifics

Florida based and with more than 1,000 employees. This firm’s annual revenue is around the $35m mark. Its services on offer are concentrated on day-to-day ledger management, data analytics, DevOps and Cloud management.

Source: Software Testing Help.

3. Ripple Labs Inc.

This relative newcomer was founded in 2012 and found a niche relating to decentralisation services, which is generating $163m per annum.

Source: Software Testing Help.

4. LeewayHertz

An established App developer, which was quick to move into the blockchain space.

Source: Software Testing Help.

5. Blockchangers

The only one of the top five not based in the US. This Norwegian firm helps governments, enterprises, non-profit organisations, and startups with blockchain strategy, business development, and implementation.

Source: Software Testing Help.

Conclusion

The potential for blockchain extends beyond cryptocurrencies, but crypto and blockchain still go very much hand in hand. You can think of owning coins as buying a right to use a particular blockchain system. Own bitcoin, access the bitcoin blockchain system, own ether and access the ethereum system, and so on.

By getting a better understanding of the blockchain statistics and facts associated with the different systems, you are now in a position to weigh up the pros and cons of each. It’s always good to learn new things, but it can also throw up investment ideas.

The structure of any processing system will play a key role in deciding whether you want to invest in a blockchain company. This has knock-on effects for crypto. Blockchain will play a big part in determining which crypto has the best shot at ultimately becoming the world’s currency. When, or more accurately, ‘if’ that happens, any owner of coins on that system will be likely to be sitting on unimaginable gains.

FAQs

Why is blockchain important?

Blockchain decentralises information flows. This means the participants in a data-sharing process manage and reconcile the data. There is more control given to users and fewer costs paid to third parties.

What are the most common uses of blockchain technology?

Blockchain is, in essence, an accounting tool. Unsurprisingly this has seen financial institutions take a lot of interest in its potential. Other sectors are catching up. Logistics, for example, can benefit from participants sharing information on what item is located where. Blockchain is great for a purpose such as that.

What counts as a blockchain startup?

A blockchain startup is a firm that focuses on one or more aspects of blockchain technology. As the technology is in its infancy, some of the services offered relate to training and consultancy while others relate to the task of operating a blockchain system.

Can blockchain be hacked?

Information in a blockchain system is managed by the users of the system. The standard answer is, therefore, that blockchain can’t be hacked as the rest of the ‘community’ would see someone trying to cheat the system.

This does mean that a group of users could defraud the system if they had majority control. This is known as a 51% hack and becomes less feasible, the greater the number of members.

Sources

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