The blockchain technology is gaining phenomenal growth in usage because of the shift toward the digital economy. This technology is widely used for securing online financial transactions, as with it, it is nearly impossible to cheat or hack a system. It can create a cross-national system of different participants, including NGOs, government bodies, any individual, and companies. Each of the entities involved with a blockchain has a verifiable record of all the transactions, and these records can only be altered with the participants’ consent.
This technology is virtually non-hackable due to its timestamp property, which is why it is becoming popular with banks, which are looking for options to enhance their data security by making their transactions impossible to be hacked and altered. Another key factor propelling the blockchain market is the integration of related solutions with the legacy system, for handling various functions served by the latter. These features offer an extreme level of security for anyone using this technology.
As a result, blockchain technologies are utilized for multiple non-financial and financial applications, among which it is utilized the most for payments. It is because digital identity applications will continue gaining popularity in the coming years as they help in eliminating the requirement for a central authority and third party. It will expand the need for blockchain-based management solutions used within any financial transaction. As per a December 2021 article in The Times of India, the value of digital transactions in India is likely to grow to $1 trillion by 2026 from $300 billion in 2021.
On the other hand, according to the estimation of market research company P&S Intelligence, APAC will also witness a massive rise in the demand for the blockchain technology, due to the heavy investments in designing such networks for minimizing labor costs. Moreover, the strongest driver for the APAC blockchain market is the rapid digitization in the region, led by India and China. With the increasing number of people with smartphones and internet access, online banking and shopping activities are rising, thus mandating the usage of this technology.
Hence, the shift toward the digital economy and increase in the requirement for securing online financial transactions are propelling the demand for the blockchain technology.
