It has been more than a decade that the world was introduced to the very first successful use case of Blockchain technology, which is cryptocurrency. A lot has happened in the technology space since then and presently the world stands at an intersection of transition from legacy systems to Blockchain enhanced architecture. Although technology has successfully managed to disrupt every sector in existence, many use cases are still in the prototype stage. The main reason being infrastructural reformation and development, regulation and resources.
However, there is no denying that the world now realizes the potency and influence of Blockchain and acknowledges its efficiency. It is the most talked-about emerging technologies that have shown exceptional values in addressing the problems within the existing systems.
While European nations like Switzerland, Malta, and Estonia spearheaded the Blockchain transition, others are catching up fast with Singapore, UAE, South Africa and others emerging as Blockchain hubs that the world is serious about Blockchain, is proven by the investment figures. Experts are expecting an 80.2% CAGR by 2023 that comes up to $23.3 billion, which indicates a worldwide surge in Blockchain projects across verticals.
Here’s a region-wise analysis of where we stand in Blockchain adoption:
Middle-East: Middle-East is emerging as the Blockchain hub with several Blockchain projects evolving out of the free economic zones spread across the region. Multiple government level initiatives have not only made way for significant investments but have also instigated a boost to the overall Blockchain development. One of the most significant mentions in that context has to be the Smart Dubai initiative.
In an article by a tech research firm blockchain market is estimated to Garner USD 137.59 Billion by 2030 with a CAGR of 67.54%. It further stated that the MEA authorities are eager to explore their options in tackling security, fraud and public administration through Blockchain. Besides the Gulf Coast nations, there is significant DLT activity in Israel as well, with prototypes use cases in areas of cybersecurity, international shipping, diamond registration, DNA storage, etc.
Europe: Europe with its single market structure and well-regulated environment serves as one of the leading financial hotspots in the world. Moreover, the European Union’s interest in Blockchain has given impetus to the region’s DLT investments and ventures. For a while now, the European Commission, the executive body of the EU has been looking on ways to implement the Blockchain technology. It is working on perfecting the regulations that would make seamless integration of Blockchain with the existing systems across verticals within the region.
Countries like Malta, Estonia, and Switzerland are already leading in the Blockchain sphere with a significant number of Blockchain startup with the others queuing up behind them fast. According to experts, by 2023 sectors involving professional services, retail, manufacturing, and banking will lead to Blockchain inclusion. The financial sector is expected to attract the highest amount of Blockchain investment.
USA: The USA with its highly developed regulatory environment and fervent support to any emerging technology offers the most viable backdrop for Blockchain growth. In 2019, it recorded a high $1.1 billion investment in the Blockchain industry compared to China’s $304 million.
With growing support from government officials, the numbers going to grow in 2020 as well. At present, the North American governments are mostly focused on modernizing law enforcement, military warehousing, validation of government contractual bids and promoting the transparency of government grants through the implementation of Blockchain.
Asia: Asia has come up as the most competitive market in the technology space, with Singapore and China championing the Blockchain cause at present. Singapore government has forever been supportive of DLT, being a financial hub of Asia. The Monetary Authority of Singapore has previously stated that Blockchain is integral to furthering the economic growth of the region.
China, on the other hand, has been quite aggressive it’s the adoption of Blockchain, to the point where even President Xi Jinping made a revolutionary statement highlighting the importance of Blockchain in the country’s growth and urging the people to embrace the emerging technology.
According to data by IDC, THE Blockchain investment in the Asia-Pacific region is expected to reach $2.4 billion by 2022. However, the list of countries does not include Japan.
Africa: Africa has emerged as the target market for Blockchain investors with great prospects. Global MNCs have Africa at the top of their list, in respect of their Blockchain ventures. There is ample scope of improvement in the financial sector which as of present had been running on formal and semi-formal and outdated architecture.
The African population is pro-Blockchain with governments eager to bring the fourth financial revolution in the region by ushering the Blockchain transformation. Investors are eager to tap into the potential of a yet untouched market.
Latin America: Latin American nations are gradually increasing pace in their Blockchain and cryptocurrency ventures. Be it the ideation of shared crypto among the BRICS nations to reduce dependency on the US dollar or Venezuela launching its oil-pegged crypto, urging the populace to use it, novel use cases are emerging every other day, portraying a bright prospect in the Blockchain sector within the region.
Uruguay is using the existing economy free trade zones to build a crypto and Blockchain-friendly environment to appeal to potential investors.
Although there are issues still in the way of Blockchain’s mass adoption, the global opinion has shifted in the technology’s favor and is gradually showing positive results in different sectors. As far as the hurdles such as energy efficiency, regulatory compliance, and interoperability, the industry leaders are looking into ways to make it as seamless as possible to integrate Blockchain and cryptocurrency.