As we strive to understand the future landscape of finance, the latest buzzword permeating every corner of the market is ‘blockchain’. Technology experts predict that blockchain finance will snowball into a $79.3B market by 2032. To put it simply, blockchain offers a new and improved way for trading, payments, settlements and asset management. There is a lot of emphasis on collaboration and acquisitions to overcome the barriers set by traditional finance systems.
So what’s causing this seismic shift in financial operations? The primary reason cited by analysts is the COVID-19 pandemic which led to unprecedented disruptions in conventional finance systems. Moreover, blockchain promises a significant reduction in operational costs making it an attractive prospect for the digital ecosystem. Public blockchains, like BTC and ETH, currently hold a dominant market share due to high computational efficiency for maintaining large decentralized ledgers tied with financial transactions.
However, this is not to say the future of blockchain finance is all roses. Major applications like cross-border payments and trading still have their own major hurdles. Notwithstanding, individuals, enterprises, and merchants are steadily increasing their demand for these use-cases. North America leads as the pioneer for blockchain adoption but again, we must remember that these trends, like blockchain itself, are decentralized and not restricted to any geographic location or standard.
The industry growth is underpinned by the potential for lower operational costs. Blockchain technology can potentially save financial institutions a whopping $10 billion in cross-border payment costs by the year 2030. This is a captivating argument that vindicates the explosive growth prediction.
However, the transition to this decentralized ecosystem won’t come without its own share of obstacles. The technology is not completely foolproof yet and still requires mass acceptance and government regulations to help secure its future. Industry analysts anticipate lots of bumps along the road towards mass adoption of blockchain finance.
In conclusion, the blockchain finance journey will be an interesting one, lined with opportunities and challenges in equal measure. Let’s travel together on this path of digital transformation, keeping a close eye on the developments and making calculated moves to leverage this burgeoning technology.
Source: Cointelegraph
