The market capitalization of blockchain-based technologies is reportedly on track to surpass $25 billion by 2025, growing at a CAGR of 69% over the next five years.
According to a recent report by Global Market Insights, blockchain tech is driving the digitization of standard business processes. The distributed ledger is also playing a key role in the automation and tokenization of physical resources. Meanwhile, blockchain-based smart contracts are streamlining routine business procedures and agreements.
The report also says that blockchain tech will help reduce “duplicative recordkeeping.” Additionally, it can eliminate the need for certain reconciliation procedures, and assist in the validation of typical business transactions.
The North America region is expected to play a leading role in the development of the global blockchain industry over the next few years, due to the relatively early adoption of distributed ledger technologies across several major industries.
Blockchain as a service has been implemented to improve supply chain management processes, identity management, payments, and risk and compliance procedures.
The report points out that an increase in blockchain adoption can be attributed to its ability to reduce costs associated with managing data storage platforms and greater overall efficiency in performing business-related tasks.
A survey conducted by researchers at Accenture shows that nine in 10 executives say that their bank is currently exploring the use of blockchain.
“Banks are definitely interested in blockchain. However, most banks we surveyed are still in the early stages of adoption, with about three-quarters either involved in a proof-of-concept, formulating their blockchain strategy, or just beginning to look into it.
Regardless of progress, the most prevalent use cases banks are studying involve intra-bank cross-border transfers. Cross-border remittances, corporate payments, and inter-bank cross-border transfers are receiving comparatively less attention. But wherever they hope to deploy blockchain, executives expect a wide range of benefits, including lower costs, quicker settlement, fewer errors and exceptions, and new revenue opportunities.”