Blockchain technology is a mainstream topic in just a few years. It is being used in an array of applications owing to its secure features, cost optimization, and improved efficiency. This has instigated the leaders in the government to explore blockchain technology in various projects.
The piloting and testing blockchain applications for secure payments, identity management, data sharing, etc., are being explored across the globe by agencies and government as well. As blockchain matures, we can expect new and unforeseen applications from the government in the near future.
The 2019 market report by Pioneer reports predicts that the global blockchain-as-a-service market size would reach $8.13 by 2022.
Get to know the spending of blockchain in the last year.
Blockchain Investment in 2019
The blockchain industry has witnessed great spending in the year 2019. As per Dantoni’s reports, the blockchain or cryptocurrency sector had ~$3.7B in investments that includes 741 deals in the year 2019.
An overview of blockchain industry investment activity for the year 2019 shows that Asia, North America, and Europe occupy the prime positions in investment -The Block Genesis.
Moving forward, let us have a detailed note about the investments on blockchain technology here.
Blockchain administrations across the globe
Here is a compiled list of most recent blockchain administrations that have already launched or launching blockchain projects across the globe.
• The People’s Bank of China (PBoC) is working on China’s digital currency for the last five years and digital ‘Yuan’ will get distributed to commercial banks, and then to users. The businesses may register digital wallets with commercial banks. Shenzhen and Suzhou would be the cities to pilot digital currency as per the reports.
• China has submitted more than 12,300 blockchain-related patents (4,295 in 2019 alone) as per the global patent database records. The applicants include Tencent, Alibaba, and ReeChain.
• The European Horizon program 2020 program has plans to invest €300 million in blockchain projects across the Union.
• The National Payment Corporation of India (2020) launches the ‘Vajra’ blockchain-based payment platform. The Vajra platform facilitates payment companies to provide secure transactions on their online platforms or mobile apps. It is based on Distributed Ledger Technology (DLT) for automating payment clearance and settlement processes for Rupay card, Unified Payments Interface (UPI).
• Draconis Capital Future Fund will invest $100 million this year in startups related to blockchain. Recently, it has invested INR 35 lacs in Ayaan Smart Systems which would roll out its product by March 2020.
• The Energy and Resources Institute (TERI) has developed a blockchain-powered platform in partnership with Noida-based blockchain and IoT start-up Sofocle Technologies limited. It facilitates peer-to-peer transactions of solar energy while ensuring security, transparency, and efficiency among the consumers. Further, India is determined to install 40 GW of electricity capacity from solar plants by 2022.
• Binance has recently acquired Wazir X, Mumbai-based crypto exchange platform for $10-15 million.
• Hipperson who founded ‘Ziglu’ has plans to process US$ 1bn in transactions in 2020, and expand the bank into the U.S. as per Financial News London. Currently, the e-money license for Ziglu is under process from the U.K.’s Financial Conduct Authority.
• The Nigerian Communications Commission, the country’s telecom regulator, has invested ~$5,500 in Wicrypt. Wicrypt enables blockchain-based WiFi sharing service which facilitates users to earn money by sharing their Internet connection. The users can deposit funds using fiat, bitcoin, ether, and binance through the Wicrypt mobile app. The hosts can withdraw their earnings in cryptocurrency or fiat.
• The Slovenia government determines to explore the blockchain technology at the country level and as part of International groups in its digitization plan called Digital Slovenia 2020.
United Arab Emirates (UAE)
• The Department of Urban Planning and Municipalities, Abu Dhabi – the capital city of the UAE has partnered with Indian IT firm – Tech Mahindra to put its land registry on a blockchain platform. The agency aims to provide Abu Dhabi citizens with Smart Hub, a blockchain-based solution to trace land records and reduce the processing time for real estate transactions.
• DLive, the popular blockchain-based content sharing platform joined BitTorrent Inc., a consumer software company, San Francisco for blockchain-based peer-to-peer content sharing and live streaming.
• The United Nations uses blockchain to collect donations in Bitcoin (BTC) and Etheruem (ETH) through the United Nations Children’s Fund (UNICEF). Blockchain technology ensures the donators that their money reaches the destination. It follows the same principle as that of Binance’s Blockchain Charity Foundation.
• Venezuelan President Nicolas Maduro has said that at least six million families have used ‘Petro’, the national cryptocurrency as the payment method to purchase goods and services during the New Year Holidays, and #PetroApp hashtag is trending in Twitter in Venezuela.
More companies and governments use blockchain technology to build trust with transparent and collaborative networks. Blockchain technology is being explored to relieve many pain points.
Though there is an enormous amount of research and a larger number of pilot projects for blockchain, certain questions remain. A few of them include scalability, risk of private-key theft, data breach, lack of blockchain awareness, and social repercussions. Presently, the blockchain community is working on these issues.
The best part is that the endeavors regarding blockchain technology usage are quite promising. All predictions regarding blockchain seem achievable in the days to come. The year 2020 will see tremendous progress in the domain.