Rising Government Support and Initiatives Worldwide to Create Lucrative Opportunities for Blockchain Market During 2021–2028
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Blockchain technology and its applications in the banking, financial services, and insurance (BFSI) sector have attracted a lot of attention in the past few years, majorly due to its ability to transform existing industries’ foundations and business models. Presently, apart from cryptocurrency applications, the other major practical applications of Blockchain are still in the banking and financial sector; however, various companies and institutions are now rapidly developing Blockchain-based solutions to solve complex business problems. In general terms, Blockchain is a subset of a broader distributed ledger technology (DLT), and it combines three significant concepts – cryptography, smart contracts, and distributed ledger design. Distributed ledger technology (DLT) is a fast-emerging approach that records and shares data across various data stores/ledgers. DLT facilitates the recording, sharing, and synchronization of transactions and data across a distributed network of different network participants.
All the major industries worldwide, including BFSI, retail, logistics & transportation, healthcare, automotive, media & entertainment, and government, are embracing and investing in disruptive technologies such as Blockchain, artificial intelligence, Internet of Things (IoT), big data, and predictive analytics. The rising adoption of Blockchain technology is driven by the successful use cases and proof of Blockchain concepts in various industries that resulted in increased transparency, enhanced operational efficiency, and reduced costs. The nature of businesses is becoming very competitive in every industry worldwide, and to compete efficiently, enterprises nowadays rely on technology integration into various business functions to increase operational transparency and efficiency.
Blockchain has several applications in the financial sector, including payments, capital markets, trade services, investment & wealth management, and securities & commodities exchanges. Substantial cost savings is one of the main drivers for the rising adoption of Blockchain in this sector.
The use of Blockchain technology made transactions more transparent across major industries. This transparency helps prevent fraud and unauthorized activities in industries, such as financial services, government, and healthcare, where sensitive data is shared among participants. Blockchain streamlines and automates the traditional, paper-heavy processes, which are time-consuming and prone to human error. This makes transactions fast and efficient, thus, increasing operational efficiency.