Blockchain gaining adoption in more than just DeFi, says report

Anyone familiar with the blockchain industry knows that decentralised finance (DeFi) is one of the sector’s most prominent use cases with the most substantial adoption, writes Cointelegraph. Recent issues in the banking sector, it argues, like those surrounding Silicon Valley Bank and Credit Suisse, have caused many to take a second look at Bitcoin and crypto as an alternative to the traditional banking system. And while the further expansion of DeFi bodes well for the rest of the crypto industry, is blockchain technology expanding and being utilised in other ways as well?

That’s the question Cointelegraph Research dives into in its latest report, “Blockchain Use Cases and Adoption.” It does cover some financial use cases for Bitcoin and crypto but also explores data management, cloud storage, supply chain, smart sensors, carbon credits, decentralised autonomous organisations, digital identities and more. The report focuses on real-world use cases rather than theoretical applications and highlights projects in each area.

Cointelegraph Research used the current market penetration of different projects, the compound annual growth rate (CAGR) of the industry, and various macroeconomic factors to create an equation of exchange model, which was used to project the future total value locked (TVL) and potential penetration of blockchain technology in each segment. For example, in 2022, the estimated size of the global insurance market was $5.94 trillion, with the blockchain industry penetration rate at 0.01%. Cointelegraph Research forecasts that by 2025, blockchain projects will penetrate 0.05% of the total addressable market, at a TVL of $4.2 billion.

The world is already on the blockchain in many ways.

Bitcoin has been on a run during the past few weeks, and the crypto industry has reclaimed a $1 trillion market capitalisation — but there are other markers also pointing to positive signs for future adoption. A June 2022 Deloitte survey found that 75% of United States retailers planned to accept crypto payments within two years, while a Cointelegraph survey last year found that 62% of professional investors held digital assets. Meanwhile, $36.6 billion in venture capital was invested into the blockchain industry in 2022, which will help grow new projects in the future.

The “Blockchain Use Cases and Adoption Report” covers this and blockchain’s current financial use cases, but it also dives deeper into its applications in entertainment, data management, ESG (environmental, social and governance), and decentralised autonomous organisations.

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