Blockchain provides a digital record of transactions. It stores and distributes data or block across a whole computer set-up. All these blocks are connected to each other via cryptographic hash that aims to provide an exact path of transactions to make certain easy verification. It is key technology used for aiding the payments. This is way cheaper and much more secure than the other forms of the payments. It supports variety of applications as digital modes for payment in definite places such as restaurants, vending machines and grocery stores.
Some of the key elements of blockchain are nodes, ledge or block and miners etc. The major features on the blockchain technology include bundling services, verifying authenticity of documents or data, unbundling services, new legal frameworks, time stamping, sharing a distributed ledger, implementing digital signatures, new flows of value, reconciling accounts, rethinking intermediaries, decentralized governance, sharing a distributed ledger and creating or issuing digital assets etc.
According to study, “China Blockchain Technology Market (2018-2023)” some of the major companies that are currently working in the China blockchain technology market are Deloitte, Microsoft Corporation, Bitkan, Okcoin, BTC China.
The blockchain technology market is categorized into many types such as public blockchain, private blockchain and mixed or consortium blockchain. Public blockchain is interoperable and open blockchain while private blockchain limits the people who are granted access. The mixed blockchain is a combination of public blockchain and private blockchain.
On the basis of application, the market is segmented into financial services and non-financial services. Moreover, on the basis of end user, the market is segmented into banking, healthcare& life science, media & telecom, retail & e-commerce, government &public sector, automotive vehicles &transportation, financial services and consumer products etc.
The People’s Bank of China (PBOC) is government organization, which supports the development of blockchain based trade finance platform. This platform offers the large range of financial tools. In addition, JD.com is an e-commerce firm of country, which uses this technology for supply chain management.
Nowadays, China is using blockchain technology for various domains such as travel booking and mobile payments. Around 55 % Chinese tourists are paying through their mobile phones during their abroad travel and 90 % to 100 % of transactions are done through mobile payments. These factors are liable for growth of the market.
Some of the major advantages include disinter mediation, transparency & immutability, process integrity, high quality data, ecosystem simplification, empowered users, faster transactions, lower transaction costs and durability & reliability etc. Some of the major disadvantages are nascent technology, large energy consumption, redundancy, uncertain regulatory status, cultural adoption, integration concerns and control & security.
The market of blockchain technology is mainly driven by increasing adoption rate across financial institutes. Increasing urbanization, growing funds by the companies, increasing technological advancements, rising demands for efficient transaction, mounting investments in the financial sector and government regulations are increasing significantly that led to the growth of the market. However some of the factors which act as restraints include low awareness level regarding the benefits of the technology.
More than half of the 406 applications come are developed from this country, globally. In upcoming years, it is estimated that blockchain technology market will be grown increasingly due to rising adoption of e-wallets, huge population of young people, rising prerequisites among the end users and growing applications. It is expected that the future of blockchain enlargement in China will depend on elegant regulations and policies.
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Ankur Gupta, Head Marketing & Communications