According to the latest report by PwC, a global network of different firms providing professional services to organizations and individuals, blockchain technology has the potential to boost global GDP by US$ 1.76 trillion which is 1.4% of global GDP by 2030.
The report, titled “Time for trust: The trillion-dollar reason to rethink blockchain,” explores the impact blockchain technology can have on the global economy. The report says that the shared and cryptographically secure nature cuts out intermediaries and puts blockchain in an important position for improving trust, transparency, and efficiency across organizations.
The report measures blockchain potential to create value across the industry, from healthcare, government, and public services, to manufacturing, finance, logistics, and retail. The findings of the report estimate a tipping point in 2025 as blockchain technologies are expected to be adopted at scale across the global economy.
The report says:
“Organisations are rethinking the way they operate as they grapple with the impacts of COVID-19 and the way the pandemic has accelerated many disruptive trends – such as the shift towards more digital ways of working, communicating and transacting with customers.”
PwC analysis identifies five key application areas of blockchain and assesses their potential to generate economic value.
According to the report, tracking and tracing of products and services have the largest economic potential with creating $962 billion in revenue. The use of these technologies in payments and financial services to support financial inclusion through the cross border and remittance payments could generate $433 billion. Blockchain-based ID management systems to curb fraud and identity theft will save $224 billion.
Blockchain holds great promise in the realm of contracts and dispute resolution by increasing the global GDP by $73 billion. And lastly, the application of blockchain in customer engagement offers $54 billion in revenues.
Asia is expected to be the most beneficial continent with blockchain technology. In terms of individual countries, PwC economists expect China ($440 billion) and the United States ($407 billion) to benefit the most from blockchain technology over the next decade. Germany, Japan, the UK, India, and France are also estimated to have net benefits of over US$50bn.
At the sector level, Public administration, education, and healthcare sectors will benefit the most, approximately US$574bn by 2030.
According to the report, there are broader benefits of this technology than described in this report but it depends on a “supportive policy environment, a business ecosystem that is ready to exploit the new opportunities that technology opens, and a suitable industry mix.”
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