Over the past few years, blockchain technology has been taking over the entire globe like wildfire. If you don’t believe this, then check out these statistics. A report by MarketsandMarkets forecasts that the global blockchain market is expected to generate a revenue of $94 billion by the end of 2027. Well, in 2022, the report states that the market was only at $7.4 billion. The market is expected to grow at a CAGR of 66.2%, with North America currently being the dominant region in the blockchain market globally.
Now check this out. A report by Gartner estimates that blockchain solutions will govern between 10% and 20% of the global economic infrastructure by 2030. Another report by PwC even claims that 61% of companies globally are placing digital transformations as their top most initiatives with blockchain being at the center.
Popularity of the Ethereum blockchain
One of the popular blockchain techs is the Ethereum blockchain. Well, we know that you are familiar with the popular Ethereum cryptocurrency. It is the second largest crypto by market capitalization, just after Bitcoin. As of the day of this writing, the price of Ethereum stands at $2,610.06 with a market cap of $314.14 billion. Although this is a big success for the Ethereum blockchain, it is not the only one.
There are so many uses for the Ethereum blockchain that have been implemented so far in 2024. All these innovations have made the blockchain to become one of the most innovative and respected systems in the whole markets. We’ll discuss a number of them here in this article.
Supply chain management
Today, supply chain management is undergoing challenges that revolve around security and communication. Actually, a study by McKinsey & Company found out that 45% of supply chain leaders only have visibility to their 1st-tier suppliers or, actually, none at all. Imagine that only 7% have multi-tier visibility. Again, these supply chains are vulnerable to security hacks that can easily disrupt the whole chain. In fact, a 2023 report by Evolution of Software Supply Chain Security showed that malicious packages targeting businesses have increased by 47.4%.
Now, Ethereum’s blockchain comes to deal with these challenges. Imagine a world where you could be able to trace the products you need from when they come from the suppliers to when they are given to the final consumer. That’s what Ethereum’s blockchain does. Companies adopting this tech are able to improve their chains by identifying delays, increasing satisfaction, and improving brand loyalty. Actually, 86% of supply chain leaders think that blockchain technology increases their competitive advantage.
Well, in matters security, we all know that blockchain offers security than any other technology. The fact that information in the blockchain is stored in small blocks (nodes) linked to each other makes it difficult to alter one block and the ones linked with it. Ethereum’s blockchain technology is really helping out businesses.
Decentralized finance (DeFi) applications
If you know Ethereum, then you might be conversant with its child DeFi. Well, the DeFi era started with the Ethereum network. DeFi apps are applications built on a system that doesn’t conform to the systems of traditional finance. They basically form an ecosystem of financial applications that operate using blockchain tech.
You’d probably be wondering, what does this DeFi thing do that makes it different from traditional forms of finance? Well, to start with, these applications are transparent, cost-effective, immutable and secure. Another thing about DeFi is that it allows for financial inclusion, offering services to both unbanked and underbanked people globally.
With such advantages and even more, many people from various continents are striving to have a piece of the system. For example, September 2022 data from Google Trends showed that Nigeria was the country with the highest interest in the search for the term “decentralized finance.”
Some of the popular DeFi applications include:
- Decentralized exchanges (DEXs)
- Stablecoins
- Lending and borrowing platforms
NFTs and digital collectibles
One of the biggest buzzes today among Ethereum users is non-fungible tokens (NFTs). They are digital assets that are used to represent individuality and uniqueness, as they cannot be replaced or replicated by another asset. People use NFTs to represent their ownership of assets like:
- Collectibles
- Artwork
- Real estate
- In-game elements
Actually, Ethereum is the most popular blockchain tech that trades and mints NFTs. In fact, as of the day of this writing, NFT Price Floor shows that Ethereum blockchain ranks number one in NFTs with a market cap of $4.122 billion. The use of NFTs by the blockchain has made it easy for the creation of secure and transparent markets.
Final thoughts
Well, it is very clear that blockchain technology is taking over the world like a storm and various industries are getting to adopt it. Now, a system like the Ethereum blockchain is becoming very popular since it offers numerous advantages, ranging from transparency and security to speed. We are yet to see how much this technology will change different sectors of the economy.
