Blockchain is being adopted 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 and most widely used use cases. Recent troubles in the banking sector, such as those surrounding Silicon Valley Bank and Credit Suisse, have prompted 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 leveraged in other ways as well?
That’s the question Cointelegraph Research delves into in its latest report, “Blockchain Use Cases and Adoption.” It covers some economic 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 various projects, the compound annual growth rate (CAGR) of the industry, and various macroeconomic factors to create an exchange equation, 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 of 0.01%. Cointelegraph Research predicts 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 the run in recent weeks, and the crypto industry has regained a $1 trillion market cap — but there are other markers that also point to positive signs for future adoption. A June 2022 Deloitte survey found that 75% of US 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 in 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 economic 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 that are still in the incubation stage, focusing instead on those whose use 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 large CAGR and could grow significantly in their sector over the next two years. They offer great solutions for various current sensor applications, such as smart cities and even cars, which can use distributed ledger technology such as 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 might go in the future.
The Cointelegraph Research team
Cointelegraph’s research department consists of some of the best talent 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 Deputy Director of Research at Cointelegraph. The research team is composed of subject matter experts from all areas of finance, economics and technology to bring to market the premier source of industry reports and insightful analysis. The team uses APIs from a variety of sources to provide accurate, useful information and analysis.
With decades of combined experience in traditional finance, business, engineering, technology and research, the Cointelegraph Research team is perfectly positioned to put their combined talents to good use with the “Blockchain Use Case and Adoption 2023 Report.”
The opinions expressed in this article are for general information purposes only and are not intended to provide specific advice or recommendations for any individual or about any specific security or investment product.
