Blockchain technology is now spreading its borders all around the globe but still, there is a lot that it has to provide for the global economy. When we look into the reasons for the impacts of blockchain on the global GDP, we have 5 crucial elements, considered and graded according to their potency to generate economic rate.
Role of Blockchain technology in Transaction
First of all, blockchain technology is now taking up various forms of financial services including payments, usage of digital currencies. This has an economic potential of nearly 433 billion dollars.
The success of Blockchain technology will entirely be dependent on a supportive policy environment. The policy creates an enclosed business ecosystem and also adds that the person who signs the policy should be willingly ready to exploit the upcoming fresh opportunities that arise due to technology, and an apt industry mix.
Next, the economic analysis and industry research made by PwC says that in 2025, it is highly expected that blockchain technologies will be adopted at scale at a global level.
Kept us in a safe bubble during the pandemic
During the worldwide crisis, the COVID-19 pandemic, many giant companies were struggling in tracking and tracing products and services. During this hard time, blockchain technology extended a helping hand and supported many companies, from heavy industries to famous fashion brands. Curious to know how blockchain works? Click here.
This also helped in actively responding to the rise in public and investor inspection, around ethical and sustainable sourcing. Due to all these factors, blockchain technology has the largest economic potential of approximately 962 billion dollars.
More sectors are getting affected positively by Blockchain technology
It is also estimated that the growth in the usage of blockchain technology will have broader benefits for the communications and media fields, and various business services. Meanwhile various manufacturers, wholesalers, construction services and retailers will definitely get benefitted by using the blockchain applications to interact closely with the consumers and meet the demand for traceability, as well as provenance.
The application of blockchain is extensively used in identity management, which includes certificates, personal Identity cards, professional credentials in order to prevent identity theft and curb fraud.
While handling confidential contracts, customer engagement and dispute resolution, blockchain technology provides high security. The application of blockchain technology is widely used in many loyalty programmes which in turn extend the potential of blockchain wider.
Impacts of Blockchain at different regions
When we compare the gross development product of the seven continents, Asia will be highly likely to get more benefit from the usage of blockchain technology. But, when looking deeper and calculating the same in terms of separate countries, China tops the table as the blockchain would have the highest potential of 440 billion dollars. Next to it stands the USA with 407 billion dollars potential.
The next five countries where blockchain would have a net benefit of nearly 60 billion dollars are Germany, Japan, the United Kingdom, India and France. Though the way each country gets benefited differs, places such as China and Germany, which highly concentrate on manufacturing, will get more benefits from traceability and provenance.
When people start to realise the impressive benefits of Blockchain and start using the same,from trading to transactions, everything can be done in a more efficient and prosperous way.