There have been several attempts to introduce digital money in the past to provide a better financial system in the world. However, most of them failed.
One of the challenges that the previous versions of money faced was a lack of trust.
Bitcoin is a digital currency that was designed to solve this problem by making use of a special database to record transactions called a blockchain.
Most regular databases are controlled by a single person who can change the information being entered. Blockchain is different because the database is distributed across many computers in different areas, and no individual person can falsely edit the information .
In light of this fast-growing and interesting technology, we have created this article to show you some general blockchain market statistics and unique use cases of blockchain technology, that would give you a bird’s eye view of the past, present and future trends in the blockchain space.
What is Blockchain?
Blockchain is a digital ledge hat records transactions in a series of blocks by multiple users in a network of connected computers. Blockchain records information in such a way that it can’t be easily changed or hacked. Even if someone attempts to tamper with recorded transactions, everyone in the network will know.
Each transaction or record on a blockchain is stored in a “block.” For instance, a block on the Bitcoin blockchain could contain up to 500 Bitcoin transactions. The information recorded on a block depends on and is linked to the information in a previous block and, over time, forms a chain of transactions. This is what makes it a blockchain.
Blockchain is often referred to as a distributed ledger technology (DLT) because it has a shared or decentralized database that is managed by multiple participants. Transactions on the shared database are recorded with an unchangeable cryptographic signature called a hash.
Blockchains are commonly known for their crucial role in introducing cryptocurrencies like Bitcoin and Ethereum, and recent innovations like decentralized finance, decentralized applications, and NFTs. These innovations make use of blockchain technology because it guarantees a more secure record of data and generates trust without the need for a trusted third party.
How Blockchain Works
Here’s how the Bitcoin’s blockchain works. When you send Bitcoin to another user, you pay a small transaction fee (in bitcoin) to Bitcoin miners, people running a network of computers that confirm and organize your transactions. Your transaction is then bundled with other transactions pending in a queue to be added to a new block.
The miners will then work to validate your transaction along with other joined transactions in the block by solving a complex mathematical problem to come up with a hash, which is a 64-digit hexadecimal number.
Only one miner can solve it per block. Miners solve the problem by having computing equipment issue several guesses per second, and the miner that guesses the correct number first receives the block reward for mining that block as well as any fees paid by people sending funds.
Not only that but the miner also gets rewarded by the Bitcoin network. These are known as block rewards. Currently, a miner receives 6.25 bitcoins for mining a new block. The amount of the reward halves after the creation of every 210,000 blocks, or every four years. The amount is expected to become zero around 2140.
Different Types of Blockchain
This type of blockchain mining is called “proof-of-work,” and is extremely energy intensive. Bitcoin currently consumes more electricity than the nation of Switzerland every day due to the amount of computers running complex computations 24/7. Other types of blockchain consensus require a small fraction of this energy. The Ethereum blockchain is switching to a proof-of-stake consensus model which will allow trusted validators to validate transactions.
These validators must deposit a significant portion of their own Ethereum holdings onto the network and risk losing it if they make a mistake or attempt fraudulent activity. Validators with more funds have a higher chance of being selected. This method is more centralized than the proof-of-work method due to the need for trust and the potential for wealthy users to control the network, although Bitcoin is also increasingly controlled by powerful and wealthy miners.
Why We Chose These Blockchain Stats
Many people have refused to adopt the use of blockchain technology because they don’t have a basic understanding of how it works and the huge potential that blockchain promises.
A big reason for this is that there are several blockchain-related resources like whitepapers, yellow papers, etc, that users find so difficult to understand. Also, some blockchain projects have difficult user experiences that discourages users from participating in such projects.
Due to these, we carefully selected a list of interesting statistics on blockchain that can easily increase your knowledge about the blockchain space.
These blockchain statistics will show you the different milestones of Blockchain technology and will give you a hint on why many around the world are demanding its increased adoption.
No matter the level of your blockchain knowledge, these facts we’ve chosen will give you a broader perspective of the blockchain space in 2022.
Fascinating Blockchain Statistics
According to some blockchain country statistics, certain countries have introduced strict government regulations on cross-border payments and local cryptocurrency transactions. They set this up to prevent the use of cryptocurrencies for fraud or for stealing public funds.
However, in some countries like Turkey, the government facilitates the adoption of blockchain technology and cryptocurrencies through encouraging activities like cryptocurrency mining and trading.
Recent statistics have shown that blockchain will continue to disrupt many industries and gain mainstream adoption. Let’s dive into these statistics in details.
1. 20% of IoT technologies had blockchain-enabled services in 2020.
The International Data Corporation (IDC) revealed that 20% of IoT deployments made use of blockchain technology In 2020. Blockchain helps to enhance IoT security by making the IoT system more secured due to the decentralized and immutable nature of blockchain technology. As a result, many IoT development companies rely on blockchain technology for their business models.
2. The global blockchain market size to grow at a CAGR rate of over 69% between 2019 to 2025.
The blockchain industry in North America is estimated to dominate the worldwide industry share between now and 2025. This is due to the early adoption of blockchain technology solutions across various industries like the creation of payment & digital wallet solutions, smart contracts, digital identity detection, and documentation applications.
These businesses use blockchain due to several benefits offered by technology such as the removal of repetitious recordkeeping processes, and validating transactions.
(Source: Globe News Wire)
3. Globally, the banking sector alone could generate up to $1 billion in revenue from blockchain-based cryptos.
Most global banks have tried to reduce fraudulent activities, protect users data, and prevent money laundering by investing in tools that take more of users time and cost a lot of money.
However, it’s estimated that the adoption of blockchain solutions for customer onboarding in financial institutions can save up to $1 billion in operating costs for retail banks and reduce regulatory fines from $2 billion to $3 billion.
4. Most prominent investors in blockchain technology are in the financial sector with a market share of 46%.
Statistics from Compare Camprevealed that the industry with the largest number of investments n blockchain technology is the financial sector. Others include the manufacturing and energy sectors which have 12% each, healthcare (11%), government (8%), retail (4%), and media and entertainment (1%).
Globally, about 77% of the companies in the financial sector are estimated to have integrated blockchain-enabled services as a part of their business functionality and processes.
(Source: Compare Camp)
5. Mobile wallets are the most preferred form of blockchain wallet for most users.
Statistics from Compare Camp has revealed that out of the current 4.57 billion active internet users, 3.5 billion people have mobile devices. This explains why 62% of all blockchain products make provisions for mobile blockchain wallets. Users prefer using mobile wallets to using other types of blockchain wallets.
(Source: Compare Camp)
6. There are over 70 million registered blockchain wallets.
Blockchain wallets are digital wallets that users make use of to store and manage their cryptocurrencies. According to blockchain wallet statistics, in the last quarter of 2016, there were just 10.98 million blockchain wallets created. However, in the second half of 2021, over 70 million wallets had already been created. This increase reveals how valuable blockchain has become in the past few years.
7. The transaction rate per second in June 2021 is 2.58.
All the transactions that are recorded in the Bitcoin blockchain first stay in the mempool before miners pick them up to record on the blockchain.
According to blockchain statistics, the highest number of blockchain transactions ever recorded was 7.56 transactions per second. It was recorded on May 2nd, 2019. As of June 22nd, 2021, the hash rate has increased to 2.58 transactions .
8. Total spending incurred while integrating blockchain into the healthcare sector could rise to $5.61 billion by 2025.
According to statistics from a report by BIS Research, titled “Global Blockchain in Healthcare Market- Analysis and Forecast, 2017-2025”, the total cost of worldwide spending in incorporating blockchain with healthcare was estimated to be at $176.8 million in 2018, and is estimated to increase to about $5.61Billion by the end of 2025.
This reveals how the healthcare sector has actively made progress in adopting blockchain technology to improve the quality of healthcare services that it provides.
9. Blockchain was one of the most disruptive technologies for 2020.
A statistic from the research and advisory firm, Gartner, has revealed that blockchain was one of the top ten strategic technologies for 2020. The report also noted that public blockchains are currently too immature for enterprise deployment due to poor scalability and interoperability. However, it asserts that the technology will overcome most of these issues by 2023.
Blockchain General Facts and Stats
Here are some general facts and statistics about blockchain technology that will interest you.
10. The first blockchain was conceptualized in 2008 by a person known as Satoshi Nakamoto.
In 2008, a person or group of individuals known as Satoshi Nakamoto created the Bitcoin blockchain. Up until now, no one has been able to identify the identity of this person or people.
There is an ongoing suspicion that he’s a Japanese-American man named Dorian Satoshi Nakamoto, from Temple City, LA. However, he keeps denying any involvement with blockchain and Bitcoin creation.
(Source: The Sun)
11. Over 80% of central banks around the world are thinking of introducing their cryptocurrency
Statistics from Decrypt reveal that more than 80% of central banks are making plans to launch their digital currencies.
However, only a few countries like the United States of America, China, and some countries in the EU have the needed infrastructure, technology, and resources to implement this. In 2021, Nigeria was one of the first countries to launch its central bank digital currency, the e-naira.
12. There are 5 countries that are perfect for blockchain and crypto startups.
Blockchain statistics from Coinnounce reveals that there are 5 ideal countries for blockchain and crypto startups:
Switzerland— It is regarded as the world’s most stable economy and the most favourable country for blockchain and cryptocurrency startups.
Gibraltar— was the first country to regulate cryptocurrency trading by forming a Financial Services Commission that manages issuing licenses for operation and ICOs,
Malta— is also known as a blockchain hub, where several crypto and blockchain companies are established.
Bermuda—is the best option for companies who want to save on taxes, as there are no additional taxes apart from the minimum payroll tax of 10%.
Slovenia— offers cheap hydropower and cloud mining services that both provide the required electrical support for blockchain startups.
13. 42,290,501 blockchain wallet users worldwide as of September 2019.
Blockchain statistics from Statista revealed that in January 2015, the number of people around the globe who had a blockchain wallet was at 3 million. The number had increased to nearly 13 million in 2017 and increased to 28.8 million in 2018. Later on, the number of blockchain wallet users rose to 42 million. 2019.
14. Accenture Plc and Microsoft Corp teamed up to build a digital ID network using blockchain technology, to provide legal identification to 1.1B people worldwide with no official documents.
According to a statistic from Reuters, Accenture Plc and Microsoft Corp are collaborating to build a digital ID network by leveraging blockchain technology. This is a United Nations-supported project that aims to provide legal identification to 1.1 billion people worldwide who have no official documents. This will further help refugees to get access to basic needs like education and healthcare.
15. One of the biggest blockchain hacks was on Japanese exchange Coincheck, which had more than $500M worth of cryptocurrency stolen in 2018.
According to blockchain security statistics, one of the largest security breaches in the crypto space happened in 2018 on Coincheck. More than 58 billion yen, an equivalent of 500 million dollars, was stolen by hackers. The coin that was stolen was named the NEM coin.
16. The Internet of things (IoT) will be worth around $1,463.2 billion by 2027.
The global IoT market is set to increase in value to about $1,463.2 billion by 2027. One major factor driving this is the rising adoption of digital technology by a wide range of industries. The Internet of Things (IoT) market size was USD 250.72 billion in 2019 and is expected to reach USD 1,463.19 billion by 2027, exhibiting a CAGR of 24.9% during the forecast period.
(Source: Globe News Wire)
17. Blockchain technology has managed and distributed more than $270B in transactions.
One of the blockchain statistics from Nividous reveals that over 270 billion dollars worth of cryptocurrencies have been managed and distributed using blockchain technology. Since 2010, blockchain has been ahead of Western Union when it comes to the total amount of money transferred each year. Western Union processes around 5.5 billion dollars in monetary transactions. yearly.
18. 0.5% of the world’s population is using blockchain technology.
A statistic on Edureka has revealed that 50% of the human population is currently using blockchain technology. According to even the most careful estimates, this number is expected to multiply in 5 years, and in 10 years, 80% of the population will be involved with blockchain technology in some way.
19. FBI owns 1.5% of the world’s total bitcoins.
The FBI has been involved in fixing fraud-related cases in the cryptocurrency space before fraudulent activities became rampant. The agency received over 20 million dollars in funding, to help them prevent and fight cybercrimes, and it has also taken hold of the same amount of money in Bitcoin from some users.
Both of these income sources combine to make the FBI one of the largest holders of Bitcoin in the world, holding more than 1.5% of Bitcoin.
20. Ripple owns $30B worth of XRP.
According to New York Times, Ripple, a blockchain company based in San Francisco, holds a large amount of the total Ripple in circulation. The founders of Ripple created a coin named XRP which quickly gained publicity and has earned the company more than 30 billion dollars a few months after the token was launched.
(Source: The New York Times)
Blockchain Market and Revenue
The global Blockchain market is expected to rise with a remarkable growth rate and generate higher revenue by 2026. A recent report from Fortune Business Insights™, titled “Blockchain Market Size, Share and Statistics | Forecast ” evaluated and revealed the important characteristics of the market that could make this estimate a reality.
In addition, the research report distinguishes the industry based on the Blockchain Market share, types, applications, growth factor, key players and regions.
As many governments initiated programs are launched to spread the awareness and benefits of blockchain technology in undeveloped nations it will increase the demand in the global Blockchain Market,
Here are some other statistics on blockchain’s market growth rate and revenue that you should know.
21. Blockchain’s business value add will grow to slightly over $B by 2026 and $3.1T by 2030.
According to a statistic from ITWeb, as every major industry keeps investing in blockchain technologies, the business value of blockchain is expected to increase to about 360 billion dollars, in 2030. Furthermore, the business value is projected to go over the 3 trillion dollar mark, establishing blockchain as one of the most lucrative industries.
22. The blockchain technology market will have a revenue worth $60.7B by 2024.
A blockchain growth statistic from Cision shows that the global blockchain technology market is projected to accumulate 60.7 billion dollars in revenue by the year 2024. The blockchain market revenue in 2015 was just over 315 million dollars. This means that a notable increase in the use and revenue of blockchain is expected in the upcoming years.
23. The US will spend around $2.6 billion on blockchain solutions.
Many companies are expected to spend at least $6.6 billion on blockchain solutions this year. This is a 50% increase compared to 2020. According to a new report from the International Data Corporation (IDC) Worldwide Blockchain Spending Guide, blockchain spending will continue to increase throughout the 2020-2024 forecast period with a five-year compound annual growth rate of 48.0%.
24. Blockchain can reduce 30% of banks’ infrastructure costs.
A report from CoinJournal reveals that Banks around the world spend more than two-thirds of their IT budgets in improving their data storage system.
Blockchain offers a better way to store sensitive data safely, with encryption and millions of storage points, none of which completely reveals users identities. By making use of blockchain for data storage, banks can enjoy a reduction in upkeep costs by up to 30%.
25. $8B-12B is the annual savings potential for banks using blockchain technology.
According to a report based on an analysis of cost data from eight of the world’s ten largest investment banks, banks can save billions of dollars by cutting the costs of data transfer and storage by using blockchain.
It is estimated that the financial sector could save up to 12 billion dollars every year by making use of blockchain technology to meet their transactions and data storage needs.
Curious Blockchain Statistics and Facts
Here are some blockchain statistics that could increase your curiosity about blockchain. Some of these statistics reveal the fraudulent activities that have occurred in the blockchain space so far.
26. 28-year-old Czech national Tomáš Jiříkovský is suspected of laundering $40M in stolen Bitcoins in March 2015.
A shady web market known as Sheep Marketplace was involved in dubious dealings with Bitcoin in 2013. It was suddenly shut down in the same year. Tomáš Jiříkovský, the main individual behind Sheep Marketplace, was caught trying to launder some of the stolen Bitcoins worth about $40M two years after the marketplace shut down. He was convicted and was served a jail term of 10 to 18 years in prison.
27. The bitcoin market was facilitating the sale of $1B in illegal drugs in February 2015.
In 2011, the largest known deep web market for illegal Bitcoin trade known as Silk Road was created. When it was shut down in 2015, it was discovered that over 1 billion dollars worth of illegal drugs and items was traded on it.
Ross Ulbricht was sentenced to life in prison as the main individual behind Silk Road, following the confirmations of the parents whose children were overdosed after purchasing drugs on his market.
Source: The Guardian)
28. A hacker took $50M of Ether in 2016.
In 2016, Ethereum was targeted by hackers multiple times and in one of such hack attacks, about 50 million dollars worth of Ether was stolen. The hacker took advantage of some security gaps in the blockchain to carry out the back by exploiting a programming error that’s very common in smart contracts.
29. James Howells, an IT guy, lost 7,500 bitcoins because he lost Bitcoin private key in November 2013.
One of the early solo Bitcoin miners in 2009, James Howells, sold his laptop and kept the hard drive that contained his coins with the hope that they will become valuable in future.
However, he mistakenly threw away the hard drive in a garbage bag in 2013. The hard drive contains about 7,500 bitcoins. After all these years, Howells is still confident he’d be able to recover the bitcoin.
30. The first Bitcoin purchase was for pizza, where two Papa John’s pizzas were exchanged by Laszlo Hanyecz for 10K BTC on 22 May 2010.
Since bitcoin was created to serve as a better currency and legal tender, many people wanted to be sure that it can be used as a means of exchange—which is one of the core attributes of a currency. Hence, the first-ever item bought with Bitcoin was two pizzas. This transaction occurred on 22 May 2010, when Laszlo Hanyecz traded 10,000 Bitcoins for two Papa John’s pizzas. The Bitcoins spent on the two pizzas would be worth more than 280 million dollars today.
Why is blockchain important?
Blockchain is important because it helps to provide secure transactions, reduce regulations costs, and speed up data transfer processing for enterprises.
Blockchain technology can be used to manage contracts between two individuals and to trace the origin of a product in a supply chain ecosystem.
Furthermore, to achieve a transparent voting system, blockchain can be used in voting platforms to verify the integrity of voting results.
Everyone’s data is sensitive and significant. Hence, blockchain can be used to allow everyone to manage and control who has access to their data. By creating a record on a public ledger that can’t be easily altered and is tightly secured end-to-end, blockchain helps prevent fraud and unauthorized activity on a user’s database.
How many blockchains are there in the world?
The number of blockchains that exist in the world is rapidly growing every day and this will continue as blockchain technology increases in adoption. As a result, it’s very difficult to figure out the exact number of blockchains that exist in the blockchain ecosystem.
There are blockchain protocols that create and own only one coin or token. There are blockchains with lots of tokens on them and some blockchains have no coins or tokens.
However, the major blockchain platforms that exist are Ethereum, Bitcoin, Solana, Stellar, Hyperledger, Binance, Fantom Opera and Tezos. They are all doing well and growing at a massive rate.
While public blockchain cryptocurrencies like Ethereum and Bitcoin, have their blockchains, many other currencies run on preexisting blockchains. For instance, tokens like BAT, Decentraland, ChainLink, DAI, Tether (USDC) and Aragon are all ERC-20 tokens running on top of the Ethereum blockchain.
What is the biggest blockchain company?
One of the most successful blockchain companies today is Coinbase. Coinbase is an online cryptocurrency broker and exchange that has an annual revenue of $6 billion or more.
Coinbase is a global provider of financial transaction services, and technology designed to suit the ever-growing crypto economy. The platform enables cryptocurrency investors to invest, spend, save, and earn from their cryptocurrencies. The platform also provides a lot of liquidity to institutions to facilitate the transaction of crypto assets and also partners with new crypto projects to build crypto-based applications.
Can you buy shares in blockchain?
Yes, you can buy shares in a Blockchain company. One of the simple ways to invest in blockchain technology is to buy shares in any publicly traded company that’s building or working with blockchain tech products. Other company shares worth buying include companies that make use of or invest in cryptocurrencies.
When it comes to firms using or working with blockchain technology, some of the most prominent publicly-traded companies include:
IBM (offers blockchain services)
Amazon (offers Amazon Managed Blockchain service)
Intel (offers blockchain services)
Coinbase — one of the largest cryptocurrency exchanges in the U.S
PayPal (offers a bitcoin payment service)
As cryptocurrency continues to increase in adoption, more crypto companies will likely be publicly listed.