Global Blockchain Market - Trends
Five current trends in the global blockchain market are (1) stablecoins, (2) federated blockchain, (3) blockchain as a service (BaaS), (4) the integration of blockchain with social media, and (5) government usage of blockchain.
Current Trends in the Global Blockchain Market
- Stablecoins are a form of "cryptocurrency that is collateralized to the value of an underlying asset." The underlying asset for a stablecoin can vary by coin.
- Stablecoins were created as a solution to avert the volatility of Bitcoin.
- In 2020, stablecoins are predicted to achieve their peak usage.
- The Libra crytocurrency from Facebook has been a factor propelling the usage of stablecoins.
- We identified stablecoins as a current trend in the global blockchain market because it was expressly described as such by at least three, reputable sources (Professor Ahmed Banafa, a blockchain expert (courtesy of BBVA), Accounting Today, and Mobile App Daily).
- BIGG Digital Assets Inc. is a company leaning into this trend. On May 5, 2020, the company "announce[d] that it has partnered with Blockchain Foundry . . . to deliver Stablecoin development solutions utilizing BIG’s comprehensive suite of tools to provide trust and real-time risk mitigation for stablecoin creation."
2. Federated Blockchain
- Federated Blockchain describes "a decentralized network" in which multiple entities or persons can define permissions.
- The authority nodes that define permissions for a federated blockchain network are selected by "different organizations that are connected to" said network. In that respect, federated blockchain mirrors private blockchain.
- Thus, federated blockchain differs from public blockchain, which, as its name implies, is open to public use.
- Federated blockchain usage is predicted to rise in 2020.
- We identified federated blockchain as a current trend in the global blockchain market because it was expressly described as such by at least three, reputable sources (Professor Ahmed Banafa, Irish Tech News, and Mobile App Daily).
- Hedera Hashgraph is a company leaning into this trend, as the company is an example "of [a] federated blockchain implementation."
- Mobile App Daily describes BaaS (blockchain as a service) as follows: "BaaS is a cloud-based service that enables users to develop their own digital products by working with blockchain. These digital products may be smart contracts, applications, or even other services that can work without any setup requirements of the complete blockchain-based infrastructure. "
- Part of the excitement surrounding BaaS is that the need for expertise and financial resources were barriers for some companies in launching blockchain platforms, but BaaS is a practical solution to those barriers.
- We identified BaaS as a current trend in the global blockchain market because it was expressly described as such by at least three, reputable sources (Allerin, Mobile App Daily, and Professor Ahmed Banafa).
- Alibaba is a company leaning into this trend, through its BaaS offering available via Alibaba Cloud services.
- Amazon and Microsoft are other companies leaning into the trend, as both offer BaaS services.
4. Integration With Social Media
- The coming integration of blockchain within the social media landscape is seen as a solution to key problems such as the relevance of content and data privacy.
- With blockchain, data published on social media would not be able to be duplicated.
- Furthermore, this integration of "[b]lockchain . . . [will] ensure that the power of content relevance lies in the hands of those who created it" instead of with the social media companies.
- According to Irish Tech News, "blockchain-based decentralized social platforms will not only continue to flourish but at some point will surpass corporate-owned giants in popularity and functionality."
- We identified the integration of blockchain with social media as a current trend in the global blockchain market because it was expressly described as such by at least three, reputable sources (Irish Tech News, Professor Ahmed Banafa, and Mobile App Daily).
- APPICS is a social media company leaning into this trend.
- The company describes itself as follows: "APPICS is a reward-based social media app that introduces a new ecosystem which merges lifestyle, passion and user-generated income inside a single mobile application. Unlike any other popular social media site, where 100% of the platform’s value and revenue goes to the corporate shareholders, APPICS enables all users to earn a fair share of the overall revenue, as well as creative influence within the network, through our reward-token 'APX.'"
5. Government Usage
- The growing usage of and need for blockchain among governments across the globe is both a current and future trend in the global blockchain market.
- According to Market Watch, "[t]he global Blockchain In Government market is anticipated to rise at a considerable rate during the forecast period, between 2020 and 2024. In 2020, the market was growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon."
- Examples of the needs for blockchain among governments worldwide range from citizen verification/identification to "creating a national cryptocurrency."
- Blockchain will also help governments share information between agencies more seamlessly.
- Though several governments have already created national crytpocurrencies (i.e. Dubai, Sweden, Estonia), more are expected to in the future, which is one reason why this is a future trend.
- We identified governments' usage of and need for blockchain solutions as both a current and future trend in the global blockchain market because it was expressly described as such by at least three, reputable sources (Market Watch, Allerin, and Professor Ahmed Banafa).
- IBM is a company leaning into this trend, as it offers a wide range of blockchain services for governments.