Blockchain Technology - Future/Alternative Applications
The global blockchain technology market is projected to be worth $12.48 billion by 2025. Top alternative commercial applications of blockchain technology include smart contracts, ridesharing, voting, internet identity, digital advertising, car leasing and sales, cloud storage, healthcare, and supply chain management. While I found a fairly comprehensive list of top alternative applications for blockchain (by the size of the disrupted industry), I was not able to find free and publicly available market size data for many of these applications; most are too recent or too niche to have been studied extensively enough for this type of market analysis. Thus, I've focused on those applications for which I was able to find some data indicating the projected market size.
Please note that to be sure that they are top, I also looked at their coverage in tech and business media, as well as industry reports. You'll find a deep dive of my research on this topic below.
applications of blockchain
Internet identity: Blockchain could be used to create a completely unalterable and secure self-sovereign ID for every internet user. The global market for personal ID credentials is projected to reach $9.7 billion by 2021.
Ridesharing: The market for blockchain-based, decentralized ridesharing (as opposed to the centralized model of Uber) is led by startup Arcade City. This company now operates in 155 countries and is so successful that it is on track to become the world's first profitable ridesharing company. Arcade City hopes to gain a significant market share of the global ridesharing market, which is worth $44 billion and growing at a CAGR of 18%.
Internet advertising: Blockchain can help prevent online ad fraud, facilitate security and transparency, enhance the customer experience, and even be used to compensate advertisers and users. The digital advertising market is worth $223 billion globally, and it's projected that adoption rates for blockchain solutions for this industry will hit 65% in the next three years.
Car leasing and sales: Blockchain can be used to streamline the process of leasing or buying a car, as well as many other applications in the automotive industry. Blockchain automotive solutions, including financing and leasing, are projected to be worth $88 million in 2018, although I couldn't find any future projections or growth rates for this market.
Cloud storage: Blockchain can make cloud storage decentralized and therefore less vulnerable to cybersecurity threats. The cloud storage market is projected to grow to $88 billion globally by 2022, and blockchain solutions for this market are showing promise. Filecoin, a blockchain cloud storage solution, had the largest ICO in history, at $257 million in contributions.
Healthcare: Blockchain could enable healthcare stakeholders to share data without compromising patient privacy, which could lead to more accurate diagnoses, more effective treatment, and greater efficiency. It is projected that 55% of healthcare organizations will have adopted blockchain solutions by 2025. Please note that we included this as an example of a commercial application, because it's also applicable to commercial healthcare.
Supply chain management: Blockchain can enable security and transparency in transactions across the entire supply chain. The blockchain supply chain management market is projected to reach $424 million by 2023, with a CAGR of almost 50%.
Smart contracts: In short, smart contracts are "code that can keep track of terms of agreements and automate the steps towards each term’s fulfillments". This has applications for a number of sectors, including the music and entertainment industry, cloud computing, legal contracts, and car leasing. The global market for smart contracts is projected to reach $300 million by 2023. Gartner has projected that 25% of global organizations will be using smart contracts by 2022.
In addition to the applications listed above, here's a brief list of additional applications for which I was not able to find any relevant market size data, for your reference. I've included at least one source for each:
To wrap up, alternative applications of blockchain technology include smart contracts, ridesharing, voting, internet identity, digital advertising, car leasing and sales, cloud storage, healthcare, and supply chain management.