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How Many Crypto Organizations and What Role they Play in the Economy

It is impossible to calculate how many companies are now working in blockchain or are closely studying this technology to significantly increase their capabilities, occupy new market niches and substantially expand their service portfolio. 

New companies are emerging every day, exploring blockchain and its possibilities, just as many companies fail to survive the competition or the challenges of a fast-growing market and leave the business. 

But there are studies that examine the role of blockchain companies in the global economy and the contribution they can make to improving and simplifying people's lives. Let's take a look at these studies. 

Blockchain technology is one of the leading innovations in the financial industry that promises to reduce fraud, provide fast and secure transactions and operations, and finally help manage risk in an interconnected global financial system.

Using blockchain allows data users to exchange information securely without any intermediaries, and provides many benefits to organizations, greatly reducing their costs. 

According to The Economic Times, financial companies could save up to $12 billion a year by using blockchain.

Blockchain technology can be used in a variety of industries, such as healthcare, real estate, automotive and others, increasing trust in them. In the healthcare industry, blockchain increases staff efficiency by reducing diagnosis time and protecting patients' identities. 

The global healthcare blockchain technology market is expected to reach $231.0 million by 2022, with a growth rate of 63% over the next six years.

Benefits of blockchain technology

A more detailed report on all the benefits that cryptocurrency businesses can bring to the economy is prepared by CB Insights.

  • Payments

By creating a decentralized payment registry, blockchain technology enables faster payments with lower fees than banks сan offer.

Blockchain technology provides a secure and cheap way to delay payments, reducing the need for third-party verification and decreasing the processing time for traditional bank transfers.

90% of members of the European Payments Council believe blockchain technology will revolutionize banking by 2025.

  • Clearance and settlements systems

Distributed ledger technology allows to make transaction settlements directly and track operations better than existing protocols such as SWIFT.

Ripple and R3 are already working with traditional banks to make the sector more efficient.

  • Fundraising

Initial coin offerings (ICOs) offer a new funding model that separates access to capital from traditional services and capital-raising firms.

In ICOs, entrepreneurs raise money themselves by selling tokens or coins, allowing them to raise funds without the involvement of a traditional investor or venture capital firm.

Blockchain company EOS raised more than $4 billion in its one-year ICO, which ended in 2018. Although ICOs activity have declined in recent years, the model continues to be used.

  • Securities

By tokenizing traditional securities, such as stocks, bonds and alternative assets, and placing them on public blockchains, digital technology can create more efficient capital markets, greatly increasing the liquidity of traded assets.

Blockchain eliminates intermediaries in the transfer of rights to assets, reducing exchange fees, providing access to broader global markets and reducing the volatility of traditional securities markets.

Moving securities to blockchains could save between $17 billion and $24 billion a year in global trade processing costs.

  • Loans and credits

By eliminating the need for intermediaries in the loan and credit industry, blockchain technology can make borrowing money safer and provide lower interest rates.

Blockchain-based lending offers a more secure way to provide personal loans to a wider range of consumers, making the lending process cheaper, more efficient and safer.

The first live securities lending took place in 2018 in a $30.5 million deal between Credit Suisse and ING.

  • Trade finance

By replacing the unwieldy, time-consuming paperwork process in the trade finance industry, blockchain technology can provide greater transparency, security and trust between trading parties around the world.

The use of blockchain enables cross-border trade transactions, significantly reducing the costs associated with the trade and documentation processes. It will also shorten delivery times and allow goods to be tracked through all stages of their travel.

Since approximately 80-90% of global trade depends on trade finance, the market impact of blockchain will be seen globally across all industries that use cross-border trade.

  • Customer KYC and fraud prevention

By storing customer information in decentralized blocks, blockchain technology greatly simplifies and secures the exchange of information between financial institutions.

Blockchains store customer information in different blocks, which helps prevent attacks on personal data of customers.

Blockchain technology used for KYC purposes could reduce the cost to the banking sector by up to $160 million per year.

General Crypto Organizations Statistics

Banking is the sector with the highest distribution of blockchain market value, according to DemandSage.

The distribution of blockchain market value by sector is as follows:

  • Banking - 29.7%.

  • Process manufacturing - 11.4%

  • Discrete manufacturing - 10.9%

  • Professional services - 6.6%

  • Retail trade - 6%

  • Others - 35.3%

According to Statista, the worldwide spending on blockchain solutions will reach $19 billion by 2024.

The worldwide spending on blockchain solutions from 2017 to 2024 will change as follows:

  • 2017    $0.95 billion

  • 2018    $1.5 billion

  • 2019    $2.7 billion

  • 2020    $4.5 billion

  • 2021    $6.6 billion

  • 2024    $19 billion

The total cost of implementing blockchain in the healthcare sector could reach $5.61 billion by 2025.

By 2026, blockchain in the food and agriculture industries will be worth $1.48 billion.

According to Forbes report here are the top 5 companies that use blockchain technology:

  1. Adobe - Etherium

  2. Allianz - Hyperledger Fabric, Corda

  3. Andreessen Horowitz - Bitcoin, Ethereum, Solana, Flow, Celo, Near, Arweave and others

  4. Ant Group - Antchain

  5. Anthem - Hyperledger Fabric

More facts

The size of the industrial blockchain market will rise to $85.64 billion in 2023.

Nearly 80% of central banks around the world are considering launching their own cryptocurrency.

By 2030, blockchain will bring a commercial value of more than $3.1 trillion.

More than 100 Chinese companies provide blockchain applications in the real economy.

The FBI owns 1.5% of all bitcoins in the world.

Microstrategy is the company that owns the most bitcoins.

Here's a list of the top publicly traded companies with the most bitcoins on their balance sheet:

  • MicroStrategy - 129,218 BTC

  • Tesla - 43,200 BTC

  • Marathon Digital Holdings - 8,133 BTC

  • BLOCK - 8,027 BTC

  • Bitfarms - 5,243 BTC

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