In a Second Before the Breakthrough:Blockchain Industry is Growing Real

August 7, 2018 12:00 AM
In a Second Before the Breakthrough:Blockchain Industry is Growing Real

According to the survey by Transparency Market Research, the blockchain technology market will reach the mark of US$20 bn in 2024, starting from US$315.9 mn in 2015. This implies annual growth rate of 58.7%.

But what is the reason for such impressive growth of the global blockchain market? Indeed, the blockchain technology helps to reduce the risk related to fraud, counterfeit and intellectual property thefts. With this reason in mind, financial institutions, banks are looking for collaboration with blockchain developers and startups with the purpose to invest in development of blockchain projects and use the results of this development.

Yet, most of the blockchain systems are employed in the financial sphere where they ensure security of transactions and provide basis for cryptocurrencies as new means of payment. But the situation changes. Vitalik Buterin says the following:

However, the application of blockchain is not limited to cryptocurrency only. It has a huge potential to be applied across industries, in businesses and organizations of all sizes bringing significant benefits.

And it is not just a subjective opinion of one man. This spring, BMW, Ford, General Motors and Renault have decided to join their efforts to form the biggest-ever consortium for implementation of blockchain technologies into the car production industry.

The automotive sector could hardly be the only one where blockchain is introduced. In the nearest future, more and more enterprises will transfer their funding and managing processes to blockchain. Transportation, food production, electronics, machine building, pharmaceuticals, etc. will inevitably go under the global blockchain wave. Particular examples of tokenized real-sector businesses can be found on icobench.com within category “Manufacturing”.

Real economy industries become blockchain-based not only for the needs of tokenization and fundraising. Idea of building smart factories and shops is vibrant and debated today. One of the most distinguishing features of such smart factories is a revolutionary new organization of work flow with the use of robotics, decentralization and cryptography for the sake of reliability, transparence and flexibility of business in addition to automation of production and management.

In this new reality, when the number of token offerings in various industries is measured in thousands, the competition in the blockchain market is very high because of the presence of many players. Most of such entities focus on cooperation, mergers and acquisitions in order to broaden the consumer base and improve offerings to the customers. This situation resembles a boiling pot with chaotic changes and confusing environment.

At the same time, ICOs held by manufacturing giants and newly-established production companies look like solid and heavy rocks in the hurricane of changes. Especially in those industries where demand for the produced goods is stable and can be forecasted. Such stability is the main prerequisite for constant profit inflow which is favorable for both manufacturers and investors.

To speak more concrete, we can emphasize the following advantages of ICOs arranged by manufacturers:

  • Stable demand for products ensures that the token price will be less affected by market volatility. Unlike, for example, ICOs related to cryptocurrency and exchange trading;
  • Easy evaluation and comparison of such token offerings. The reason is that number of the real-sector ICOs is not especially big at the moment. So, potential investors do not need much time to find an ICO they would like to invest in;
  • Since most of them has a basis in the form of an already-established business which can be visited and examined, risk of scam is minimal; By investment in such projects, a contributor supports making not money but values: tangible products and services instead of bare speculation. In its turn, creation of new products and services can foster research and development work and, in particular cases, basic sciences;
  • As a rule, more attention to blockchain in the real sector (or manufacturing, to be exact) leads to joint development of artificial intelligence and robotics. This side work and research open new possibilities for further investment into these fields. Projects may result in related additional projects.

Regardless degree of legislation readiness, the described trend has huge potential for long-term progress and the number of various production-related tokens will increase. For an investor it is a field to walk cautiously and a brilliant opportunity to make a contribution into upheaval of manufacturing to a new level.