Blockchain is one of the “hottest” words on the net. Google trend visibly shows its traction over time. LinkedIn is nowadays full of blockchain groups, experts and this magic word started appearing in job titles as well as job postings.
It is often associated with terms like revolution, change, new era, breakthrough, transparency and liberation.
It is also not short of influential ambassadors, amongst these the former Greek minister Yanis Varoufakis.
Frank Holmes on Business Insider wrote that blockchain could be even more disruptive than amazon was in the 90s. Already in 2015 The Economist defined Blockchain “The great chain of being sure about things”
Marc Andreessen, cocreator of Netscape is even more peremptory: “Oh my god, this is it. This is the big breakthrough. This is the thing! This is the distributed trust network that the internet always needed and never had”. Arriving at the point of suggesting a Nobel Prize for who made it possible.
Success Stories
Despite blockchain it is still a relatively young technology, we can already observe very successful companies in the domain and, no surprise for an industry expected to reach over 57 Bn$ by 2025[1], unicorns, companies with over 1Bn$ valuation, already appeared.
Here is the list of blockchain unicorns:[2]
Coinbase:
It is the largest crypto market allowing the trade of any verified crypto asset.
Estimated annual revenues: >500$[3]
Estimated valuation: 8Bn$
Ripple:
A real-time payment system enabling financial institutions to directly transact with each other without the need for a central correspondent.
Estimated annual revenues: 5M$
Estimated valuation: 5Bn$.
Circle:[4]
The peer-to-peer payments technology company has already raised 246M$ across 26 investors.
Estimated annual revenues: 3M$
Estimated valuation: 3Bn$.
Binance:
The us money transfer company has already raised 246M$ across 26 investors
Estimated annual revenues: >400M$
Estimated valuation: 2Bn$.
Challenges
Blockchain deployment is getting wider and wider but it is still far away from reaching its full potential.
Reason behind that seems to relate to a lack of trust as PWC research highlights[5]. Regulatory uncertainty is the main reason holding back wild blockchain adoption.
The challenge for the governments in regulating blockchain is fully understandable. Especially if we consider that the first blockchain applications, Bitcoin, bypassed regulation completely to tackle inefficiencies in conventional intermediated payment networks. In light of this it is un
Blockchain, however, is much more than bitcoin, and while some governments keep an hostile regulatory approach, others are pioneers developing advanced regulatory frameworks to fully exploit blockchain benefits while ensuring the highest financial standards and the security for the customers. The countries in the frontline of blockchain regulation have been able to create new economical blockchain ecosystem attracting startups and investors.
Blockchain ecosystems
Malta – The Blockchain Island:
The Mediterranean island is in the frontline of improving and enhancing new regulations for securing a pioneering role in attracting innovative and avant-garde technologies. To date two major crypto exchanges, Binance and OKEx, have relocated here as well as Apple co-founder Steve Wozniak who joined a Malta-based blockchain enterprise targeting more efficient use of energy.
Zug – The Crypto Valley:
The leading role of this region started in 2014 when Ethereum located its headquarter in Zug and the Crypto Valley offered the legal infrastructure to make the vision of Vitalik Buterin a reality. Today the area is home of over 600 crypto companies, and it is one of the most active blockchain hub.
Singapore – The Asian Crypto Heaven
The Monetary Authority of Singapore (MAS) has taken several positive steps towards blockchain technology resulting in an astonishing growth of tech startups[6] and VC deals.
As member of the government commented, the ambitions for the
future are even higher: “We will be among the first few financial
services regulators in the world to introduce a regulatory framework for
digital payment token services, or what are commonly understood as
cryptocurrency dealing or exchange services.”[7]
[1] https://www.grandviewresearch.com/press-release/global-blockchain-technology-market
[2] ICO excludeds
[3] Revenues of the three unicorns are based on Owler estimation
[4] https://www.crunchbase.com/organization/circle-2
[5] https://www.pwc.com/gx/en/issues/blockchain/blockchain-in-business.html
[6] https://www.bain.com/insights/investing-in-southeast-asia-whats-behind-the-boom/
[7] https://thetokenist.io/monetary-authority-of-singapore-to-introduce-a-regulatory-framework-for-cryptocurrency-exchanges/
