Blockchain Adoption [The LATEST Statistics of May 2020]

How many countries and companies have adopted blockchain? 

Let’s start with some of the hottest blockchain adoption facts and statistics:

Top Blockchain Statistics (Editor’s Pick):

  • More than 50% of global organizations view blockchain as a strategic priority.  
  • 32% of companies are in the development stage of their blockchain project.
  • 84% of companies indicate that they use blockchain technology to a certain degree. 
  • 30% of executives believe China will become a blockchain leader by 2023.
  • Global spending on blockchain solutions is expected to reach $11.7 billion in 2022. 
  • Global spending on blockchain solutions is estimated to have reached $2.7 billion in 2019.
  • There are 3,000 blockchain startups registered on AngelList. 
  • The US accounts for 56% of the global blockchain investments.

The cryptocurrency revolution is here to stay.

However, they are still limitations.

Have you wondered about stuff such as blockchain regulation? 

Where is bitcoin legal in 2020? 

Let’s get started, guys.

First things first:  

What Is Blockchain and How Does It Work?

When we hear the word ‘blockchain’ many of us are left wondering what it is. 

The blocks contain all of the info related to the crypto transaction, including the cryptocurrencies spent, the time and date of the transaction and the unique code of the user.

To be a part of a crypto transaction, each user needs a wallet with public keys and private keys. With the public key cryptography, the user gets an encrypted key for their wallet. While the public key is visible to everyone with access to the blockchain, only the owner of the wallet knows the private key. This private key enables the user to decrypt or read the data.

All blocks have a unique hash code and are linked with the previous ones. Imagine a tower of vertical blocks marked with a number, consecutively stacked together. The blocks are stored in computers connected to the network, linked together in a chain. 

Latest Blockchain Adoption Statistics

And now, for the latest and most important stats regarding the adoption of blockchain. Shall we?

1. More than 50% of global organizations view blockchain as a strategic priority. 

(Source: Deloitte)

Deloitte polled close to 1,400 senior executives from high revenue companies worldwide for their 2019 Blockchain Survey. One of the main questions the execs had to answer was about the relevance of blockchain in their organization. 

The survey results show that 53% of the global organizations view blockchain as one of their top 5 strategic priorities. Deloitte’s Blockchain Statistics 2019 further indicate that this is an increasing trend, with only 43% of the respondents feeling the same in the prior year. 

Another 27% meanwhile view blockchain as important for their organization, though not a top priority. Only 3% of the senior executives view blockchain as not important over the next 48 months. 

2. 86% of senior executives believe that blockchain technology will be adopted mainstream. 

(Source: Deloitte)

The same 2019 Blockchain Survey has found that 86% of senior executives expect the mainstream adoption of blockchain. And 83% agree that there is a compelling business case for blockchain. The year before, only 73% of responders felt the same.

3. 77% of executives agree they will lose their competitive advantage if they don’t adopt blockchain. 

(Source: Deloitte)

In addition to this general agreement that blockchain will become mainstream, there is an overall belief, or should we say fear, among executives that unless their companies adopt blockchain technology, they will lose competitive advantage. In 2018, 68% of respondents agreed with this sentiment, with the number climbing to 77% in 2019. 

4. 30% of executives believe that regulatory issues pose a barrier to blockchain adoption. 

(Source: Deloitte)

Regulatory issues are viewed as a common barrier to the adoption of blockchain technology. In 2018, 39% of respondents felt this way, dropping to 30% the following year.

The implementation, or replacing or updating existing legacy systems was also viewed as a barrier for the further adoption of blockchain technology by 30% of the respondents. 

Potential security threats prevent 29% of global organizations from adopting blockchain technology. This marks a 6% decrease compared to 2018 when 35% of executives felt this way.

5. 43% of executives agree that blockchain is overhyped.

(Source: Deloitte) 

And while blockchain seems to be widely accepted, 43% of the respondents think that it is overhyped. In 2018, only 39% of the respondents felt the same. 

6. 32% of companies are in the development stage of their blockchain project. 

(Source: PwC)

When asked how far along are they with their involvement in blockchain, 32% of companies answered that they were in the development stage.

PwC’s Global Blockchain Survey meanwhile shows that 10% were in the pilot phase, with 15% already in the going live stage.

Out of the rest of the respondents, 20% were in the research phase, 7% had paused the project and 14% had no involvement with blockchain whatsoever. 

7. 84% of companies indicate that they use blockchain technology to a certain degree. 

(Source: PwC)

The 2018 PwC survey polled 600 executives from 15 territories. When asked about their involvement in blockchain, 84% answered that their companies were involved with the technology to a certain extent. 

8. 45% of executives believe that blockchain adoption is delayed due to a lack of trust. 

(Source: PwC)

Both the PwC and Deloitte survey found that regulatory issues are the main barrier preventing companies from adopting blockchain. The PwC survey, however, pointed to another reason, with nearly half of the executives citing the lack of trust from users in the technology as the second barrier. 

As with any other revolutionary technology, many don’t understand what blockchain is and how it works. 

9. 30% of executives believe China will become a blockchain leader by 2023.

(Source: PwC)

In 2018, 29% of executives saw the USA as a blockchain leader. Yet, only 18% project that the country will hold the top spot until 2021-2023.

While only 18% viewed China as a blockchain leader in 2018, 30% believed that the nation will take over in the 2021-2023 period. 

10. 34% of Chinese executives believe that blockchain technology will disrupt their business. 

(Source: Deloitte)

According to Deloitte’s 2019 Global Blockchain Survey, Chinese executives strongly agree that blockchain technology will be disruptive to their industry. That’s more than any of the respondents from other countries.

Only 27% of the respondents from Singapore felt the same which compares to 22% of US respondents.

11. 63% of Chinese executives believe smart contracts are highly important. 

(Source: Deloitte)

Smart contracts are one of the many uses of blockchain technology. A smart contract can be encoded with all the stipulations on the blockchain ledger. When both parties fulfill their end of the respective deal, the contract is automatically enforced.

Given all of the benefits that smart contracts offer, it’s plain to see how they are valuable to businesses. Both Chinese and American companies agree with this, with 63% of Chinese and 60% of American executives believing they are highly important.

A significant percentage of Singaporean executives agree, or 51% to be exact. Only 37% of Israeli executives share this view. 

12. Global spending on blockchain solutions is expected to reach $11.7 billion in 2022.

(Source: Statista)

Blockchain statistics from 2018 suggest that worldwide spending on blockchain solutions was $1.5 billion for that year. The amount is forecast to grow by more than $10 billion in 2022 — reaching a staggering $11.7 billion.

While blockchain technology is currently mostly used in the financial sector, it has been spreading to other industries as well. 

13. Global spending on blockchain solutions is expected to have reached an estimated $2.7 billion in 2019.

(Source: Statista)

Looking at blockchain statistics from 2019 we can see that spending on blockchain was projected to increase by 80% from 2018 to 2019. 

The USA was forecast as last year’s biggest spender, accounting for $1.1 billion. Western Europe and China follow with $661 million and $304 million, respectively. 

14. 54% of US organizations are currently hiring blockchain staff. 

(Source: Deloitte)

More than half of the US executives surveyed stated that their organizations are hiring blockchain staff.

Singaporean and Chinese executives follow with 52% and 51%, respectively.

As for Israel, only 10% of global organizations are currently hiring blockchain staff. 

15. There are 3,000 blockchain startups registered on AngelList.

(Source: Bitcoinfy)

AngelList is a platform that connects startups, investors and people wanting to work at startups.

There are around 3,000 blockchain startups currently registered on AngelList. In addition, the blockchain/cryptocurrency industry is among the most desirable ones for US applicants. 

16. The market valuation of blockchain technology is expected to reach $25 billion by 2025.

(Source: Globe News Wire)

A report on the blockchain market size 2019–2025 suggests that the technology’s market valuation could reach $25 billion by 2025. It is projected to expand at a compound annual growth rate (CAGR) of more than 69%.

This is on account of the technology’s multiple benefits and uses across various industries. It further simplifies the stock exchange process, speeding up transactions. 

17. The US accounts for 56% of global investing in blockchain.

(Source: Globe News Wire)

The USA is one of the main leaders in the blockchain market, having already adopted the technology across various sectors. Smart contracts, payment solutions, digital identity detection, and other applications have already been implemented. 

Between 2012 and 2017, the US accounted for 56% of blockchain investment

Blockchain Stocks

And how does the stock market feel about blockchain?

While blockchain is primarily associated with Bitcoin and other cryptocurrency transactions, this technology has many other uses in the business world — it can be used to store other data, such as medical or property records. 

The technology’s other practical applications have coined a new buzz word in the investment world: blockchain stock. Many of us still don’t understand how this technology works, but there is one thing that is evident to investors — the potential of blockchain is enormous. 

The industry is shifting, evolving and changing in a revolutionary way. And blockchain’s growing popularity is reflected in the stock market where the mere mention of introducing the technology can send a company’s shares soaring. There is no denying that the hype is real — Reality Shares has even created a blockchain score which ranks companies based on their blockchain potential.  

How to Invest in Blockchain?

Buy now, regret later…right? Let’s see.

We are currently witnessing the blockchain revolution along with all of the stock market’s ups and downs as well as the ongoing cryptocurrency volatility. Some believe that now is the time to buy and that they will reap the profits soon. Others are skeptical, wondering whether this is another market bubble.

If you have decided to take the leap but are wondering which blockchain stocks to buy in 2020, here is what you need to know.

Is the company actually making profits? For example, stocks in tech group Nvidia have soared, but there is a logical explanation for this. The company produces GPUs (graphic processing units) which are vital in the cryptocurrency mining process. And while investing is always a gamble, the best way to go about it is to research which companies have the most potential and to spread out your investments so as to cover different blockchain-related aspects. 

We already mentioned the possible applications of blockchain technology in multiple industries. One of the most promising seems to be using it as a new type of payment rail. A payment rail is a technology that enables financial transactions, the most common being credit and debit card rails, or electronic funds transfer (EFT) rails such as PayPal. According to the latest PayPal statistics, there are currently more than 268 million active PayPal users. It’s a big deal!

But now, blockchain technology is entering the banking sector and becoming the newest payment rail. If you google the phrase ‘best blockchain stocks 2020,’ you will find that the stocks of banks and financial services corporations adopting blockchain, such as Bank of America and Mastercard, are among the top results.

So, to sum up: you should consider the profits of the company and the intended application of the technology before you put your money into those stocks. 

Best Cryptocurrency Wallet 

Before we kick off the search for the best crypto wallet, we will try to explain what a crypto wallet is. It is a software program that stores the public and private keys mentioned at the beginning of our article. So a cryptocurrency wallet doesn’t actually store cryptocurrency — instead, it stores those keys which allow you to use your digital coins. 

There are a few different types of wallets, each with their pros and cons. There are desktop wallets and mobile wallets, with the former used on desktop computers and the latter on mobile phones. There are also web wallets, which store your keys online and hardware wallets that use a hardware device like a USB flash drive instead.

So, what is the best blockchain wallet? That depends on your needs. If you intend to store your coins and hold on to them, then a cold wallet (also called an offline wallet), such as a hardware wallet, is better suited for your needs. If you intend to use your digital coins regularly, then a hot (online) wallet may be the better option. For the best of both worlds (and diversification), you can also use two different types of wallets. 

Key Takeaways

If you didn’t retain anything from all those stats and facts above, no worries! We will sum up the key info provided by the stats.

Companies view blockchain as a strategic priority. They agree that it is the future of the industry and unless they don’t keep up with the times, they will lose competitive advantage.

Nonetheless, regulatory issues and all of the logistics of implementing the technology are preventing them from taking the next step. There is also a lack of trust in this new and revolutionary technology.

Some are skeptics, feeling that blockchain is overhyped or that it will disrupt their industry.

That doesn’t change the fact that spending on blockchain solutions is increasing and both governments and private companies are investing. 

That’s all there is to it.

See you around, on SpendMeNot.com, everyone!

Have a great day!

FAQ

What Are the Biggest Blockchain Companies?

When speaking about companies dabbling in blockchain, which factors do we consider when deciding whether they are the most prominent in the industry? Those that are pioneering the development of this technology or those that are investing in it? The line between the two is murky, with the technology still fairly new.

Ripple is among the revolutionary companies working on the development of blockchain technology and implementing it in other industries. Banks and payment providers which are clients of Ripple can use their payment infrastructure to cut down the time it takes to settle global payments.  They can settle the payments in real-time, instead of waiting three to five days on average.

Chain is another blockchain development company whose tools are used by banks and the stock market. They have a partnership with Visa and Nasdaq, so we can say that they are well established on the market.

PixelPlex is yet another company working on blockchain products for companies from various industries.

As for the top companies investing in blockchain technology, tech giant IBM seems to be ahead of the curve. They have launched their IBM Food Trust Platform, which tracks food through the supply chain and thus improves food safety.

Who Owns the Blockchain Technology?

We can’t exactly say that a single company or an individual owns blockchain technology — just like we can’t say that one company owns the Internet.  Makes sense, right?

A company or an individual can be involved in the development of blockchain technology for different applications and purposes, such as for use in the financial industry.

The technology is usually associated and credited to Satoshi Nakamoto, known as the founder of Bitcoin, though who this person actually remains a mystery.

The first mention of blockchain technology appeared in the paper “How to Time-Stamp a Digital Document”, written by W. Scott Stornetta and Stuart Haber and published back in 1991.

Which Wallet Is Best for Cryptocurrency?

Depending on the type, there are a few different wallets deemed as being the best. Here are the top ones from each category:

Best hardware wallets: 

Best desktop wallets:

Best mobile wallets:

Best web wallets:

How Do You Implement Blockchain?

We already mentioned that blockchain technology has multiple uses in various industries. But how is it actually implemented?

There are a lot of step by step guides on how to implement the technology, but let’s try to explain this simply.

One of the best things that these global blockchain technologies have introduced is smart contracts. The ‘smart’ part means that the contract executes itself.

When two parties sign an agreement, they both need to hold up their end of the bargain. So, let’s say you are ordering a dress. You can either pay now and get the dress delivered later or receive the dress and pay later. If you have a smart contract, you can pay for the dress ordered immediately but the other party will receive the payment only after they have shipped the dress.

The adoption of blockchain can also improve the voting system — each vote can be recorded on the ledger and given a unique hash code, making it impossible to tamper with votes.

Blockchain solutions are also used in the food industry to track the origin of the products back to the beginning of the supply chain. This way, if the food is contaminated, the store or restaurant that received it will be able to easily track down the supplier.

What Programming Language Is Best for Blockchain?

Each programming language has its own advantages and disadvantages, but there are few that are mentioned on every list ranking the best programming languages for blockchain. And seeing how widespread blockchain adoption is, there is no shortage of recommendations.

The following are among the most popular ones:

  • C++
  • Javascript
  • C#
  • Python
  • Java
  • Ruby
  • Solidity
  • Go

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