Blockchain is a pretty common term if you are an ardent follower of bitcoin, cryptocurrency, investment and banking. Although initially, it seems too deep and complicated to get a gist on the online marketplaces & blockchain’s technology, the core concept of blockchain is quite simple and catchy.
Now in order to understand what blockchain actually is, it is imperative that you understand the meaning of database first. So, the database is basically a collection of various types of information that is stored electronically on the computer system. The information or the data stored in the computer system facilitates the easy searching and sorting of a specific piece of information that a person is looking for.
A common example would be a database of spreadsheets in which you can store various kinds of information about a person but the information to be stored is just limited and you cannot access and store larger data on spreadsheets. On the other hand, the database is designed in such a way that you can store large amounts of information that you can access, filter and modify according to your needs.
The major difference to be noted and highlighted here between the database and blockchain is that of the structure. Just like its name, the blockchain stored information in the form of different groups that are known as blocks. Each block holds a different set of information.
The technology of blockchain is quite an innovation in the realm of the industrial revolution. The future and potential of blockchain are quite strong regarding the past. Earlier, with the advent of the postal services, there was an introduction of collection, delivery of goods, etc as an evolution of commerce. Later, with the introduction of the internet and e-mail, global commerce and communications was enabled. Fast forward to today’s time, e-commerce has further widened its horizon and pushed the previous boundaries which are changing blockchain technology.
In the new blockchain ecosystem, the online marketplaces Alibaba and Amazon are dominating the tech market and continue to grow exponentially. From the year 2014 to the year 2016, Jack Ma’s Alibaba enjoyed growth of 50%. While on the other hand, Jeff Bezos’ Amazon saw a growth of 55.8% annually. There are other online marketplaces that have been estimated to be on the growth of around $4 trillion by 2020 that comprised almost 15% of retail spending. The next online marketplace is Intuit, CEO Brad Smith, who is the owner of Turbo tax. It was reported that the percentage of the earnings increased by 43% this year.
Now as we know that the blockchain technology has been growing at a very fast pace over the last two years and the results of the above two online marketplaces. The growth of the blockchain market size has been said to be increasing at a rate of 61.5% for the year 2021. With this growth and the increase in revolutionary technology, more online marketplaces and blockchain technologies have been seen growing, thus resulting in the advent of more blockchain-based companies. This impactful blockchain has been just in the recent past two years.
Not only this but on the other hand, the investment rate in blockchain companies has been super high and ever-increasing. Since 2017, billions of dollars have been invested into blockchain companies. The token sales, also known as the Initial Coin Offerings or the ICO have increased to approximately 2 billion since 2016 in which was 256 million.
The global blockchain market size is now expected to reach USD 576.3 million by the year 2025. The CAGR is expected to be 69.4% from the year 2019 until 2025. This technology is like a digital public ledger wherein you can keep a track of all your cryptocurrency transactions. Blockchain in the online marketplaces acts as an electronic transaction processing along with a record-keeping system. Also, in the blockchain system, there are various participants that are connected in order to keep a track of all the information received which eliminates the need for any sort of third-party verification that might be needed.
This increasing demand for online marketplaces & blockchain technology is ever increasing due to all the right reasons in different sectors like financial services, industrial and consumer products, technology, transportation, media and healthcare, telecom and the public sector. These are the prime examples of online marketplaces that are responsible for market growth. The interest of the BFSI sector and increasing merchants that are inclined towards cryptocurrency has been increasing ever since.
The blockchains applications are said to be beyond the concept of cryptocurrency and bitcoin, thereby creating more transparency and fairness in this sector. Here are some of the examples that can help you understand and visualise fairly online marketplaces and blockchain technology is being used in different sectors of the market.
Blockchain provides a safer and reliable way in making international payments and money transfers in the banking and finance sector. Thus, by automating the entire process of online money transactions, the number of intermediaries that were otherwise to be included, are reduced.
Another use of blockchain in the capital markets is to improve the capital markets that help in the identification of the blockchain solutions in faster clearing and settlement of the solution, operational improvements and consolidated audit trail.
The next use of the blockchain is seen in the trade finance sector. The traditional methods of trade are usually quite slow, but with blockchain, the trade finance deals are simplified and made rapid all across the borders.
Other major sectors where you can see blockchain technology being used are in the money laundering field, insurance, peer to peer transactions, healthcare, supply chain management, real estate, media, energy, record management, voting, taxes and some non-profit agencies.