Blockchain gaining adoption in more than just DeFi: Report
Anyone familiar with the blockchain industry knows that decentralized finance (DeFi) is one of the sector’s most prominent use cases with the most substantial adoption. Recent issues in the banking sector, like those surrounding Silicon Valley Bank and Credit Suisse, have caused many to take a second look at Bitcoin (BTC) and crypto as an alternative to the traditional banking system. And while the further expansion of DeFi bodes well for the rest of the crypto industry, is blockchain technology expanding and being utilized in other ways as well?
That’s the question Cointelegraph Research dives into in its latest report, “Blockchain Use Cases and Adoption.” It does cover some financial use cases for Bitcoin and crypto but also explores data management, cloud storage, supply chain, smart sensors, carbon credits, decentralized autonomous organizations, digital identities and more. The report focuses on real-world use cases rather than theoretical applications and highlights projects in each area.
Download this report on the Cointelegraph Research Terminal.
Cointelegraph Research used the current market penetration of different projects, the compound annual growth rate (CAGR) of the industry, and various macroeconomic factors to create an equation of exchange model, which was used to project the future total value locked (TVL) and potential penetration of blockchain technology in each segment. For example, in 2022, the estimated size of the global insurance market was $5.94 trillion, with the blockchain industry penetration rate at 0.01%. Cointelegraph Research forecasts that by 2025, blockchain projects will penetrate 0.05% of the total addressable market, at a TVL of $4.2 billion.
The world is already on the blockchain in many ways
Bitcoin has been on a run during the past few weeks, and the crypto industry has reclaimed a $1 trillion market capitalization — but there are other markers also pointing to positive signs for future adoption. A June 2022 Deloitte survey found that 75% of United States retailers planned to accept crypto payments within two years, while a Cointelegraph survey last year found that 62% of professional investors held digital assets. Meanwhile, $36.6 billion in venture capital was invested into the blockchain industry in 2022, which will help grow new projects in the future.
The “Blockchain Use Cases and Adoption Report” covers this and blockchain’s current financial use cases, but it also dives deeper into its applications in entertainment, data management, ESG (environmental, social and governance), and decentralized autonomous organizations.
More than just a fiat replacement
The Bitcoin revolution inspired the creation of more than just an electronic cash system, with the technology having since morphed into many different applications. The “Blockchain Use Cases and Adoption Report” purposefully stays away from projects still in the incubation stage, instead focusing on those whose adoption of blockchain has actively impacted the market landscape.
For example, as highlighted in the “Data Management” section of the report, Internet of Things sensors have a great CAGR and can grow significantly in their sector over the next two years. They offer great solutions to various current sensor applications, such as smart cities and even automobiles, which can use distributed ledger technology like blockchains or directed acyclic graphs to better interact with the environment around them.
Cointelegraph Research’s latest report also covers royalties, advertising, events, gambling, video games, securitization and several other topics, analyzing how they work and where they could go in the future.
The Cointelegraph Research team
Cointelegraph’s Research department comprises some of the best talents in the blockchain industry. Bringing together academic rigor and filtered through practical, hard-won experience, the researchers on the team are committed to bringing the most accurate, insightful content available on the market.
Michael Tabone is the deputy director of research at Cointelegraph. The research team is composed of subject matter experts from across the fields of finance, economics and technology to bring to the market the premier source for industry reports and insightful analysis. The team utilizes APIs from a variety of sources in order to provide accurate, useful information and analyses.
With decades of combined experience in traditional finance, business, engineering, technology and research, the Cointelegraph Research team is perfectly positioned to put its combined talents to proper use with the “Blockchain Use Case and Adoption 2023 Report.”
The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
Source: Read Full Article