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There was a time when blockchain and cryptocurrency were joined at the hip. After all, blockchain serves as the digital ledger recording crypto transactions, including those in bitcoin.
Today, the links between blockchain and crypto remain, but the former is separating itself from the latter and that’s a good thing. That’s a knock on crypto, but rather testament to blockchain’s evolving usage case, which in turn highlights a potentially attractive investment thesis with or without assistance from bitcoin and friends.
That rapid pace of blockchain adoption, which doesn't hinge on bitcoin or any other cryptocurrency for that matter, is many ways a relief because as, some of history's most disruptive innovations took years to reach scale.
“Blockchain has gone far beyond its beginnings in banking and cryptocurrency: Annual funding to blockchain companies, despite falling from 2018’s record high, more than doubled in 2020 compared to 2017. Annual spending on blockchain solutions will reach nearly $16 billion by 2023,” according to CB Insights.
Data Bode Well for Blockchain Adoption
Recent research conducted by Coinbase in partnership with The Block indicates that 52% of the Fortune 100 companies have examined blockchain, crypto or Web3 plans since the start of 2020. For blockchain firms, the good news is that crypto and Web3 need blockchain, not the other way around.
“About 60% of Fortune 100 initiatives reported since the start of 2022 have been either in the pre-launch stage or already launched. Zooming out, 83% of surveyed Fortune 500 executives who are familiar with cryptocurrency or blockchain say their companies have either current initiatives or are planning them,” according to Coinbase.
One of the primary reasons companies are examining investments in blockchain, crypto or Web3 is that they realize the traditional financial services system is antiquated. When it comes to innovative technologies, of which blockchain is one, it’s lead, follow or get out of the way. That is it to say there’s value in blockchain because it can help early adopters beat rivals.
“About two thirds (64%) of surveyed Fortune 500 executives who are familiar with cryptocurrency or blockchain say that investing in these technologies is important for staying ahead of their competition,” adds Coinbase.
Some industries are embracing blockchain more rapidly than others with the group of adopters led by tech, financial services and retail, though it should be noted blockchain has myriad applications in the healthcare field, among others.
Data Dependency Bolsters Blockchain Case
Data is big business and it’s at the heart of how many companies across a plethora of industries function. Advisors know that data is essential to their businesses, too. Hence the relevance of blockchain in the financial services sector.
“Blockchain is the heart of corporate innovation: data collection/management (for both customer and internal data) is a top current use case and also the focus of the most planned initiatives among the Fortune 500, with 77% of the surveyed executives agreeing that blockchain could help make the financial system work better for everyone,” concludes Blockchain.
That’s likely one reason why the Fortune 100 have steadfastly invested in blockchain over the past several years and why that trend will continue.