Chain v Off-Chain: The Future of Blockchain in Trading

Let’s break down the future of blockchain in trading, shall we?

Did you know that the international blockchain market size is anticipated to increase in size from USD 3.0 billion in 2020 to USD 39.7 billion by 2025? This translates to an impressive Compound Annual Growth Rate (CAGR) of 67.3% during the 5-year period.

Source: Market Blockchain Global Forecast 2025 Report

In terms of the vertical that is expected to enjoy the highest growth rate in the next decade, it is none other than the banking and financial services market.

Not only will the financial industry enjoy a rapid growth rate but will also hold the biggest blockchain market size.

Why is this?

While there are several factors that can be attributed to this projection, the major reasons include:

· The realization of the potency of blockchain in financial transactions

· High financial ecosystem compatibility

· The proliferation and increasing interest in digital currencies

· The onset of Initial Coin Offerings (ICOs)

· Mitigated transaction cost and timelines

Now, let’s look at how traders will rely on blockchain in the future.

How traders will use blockchain technology in trading

Because of distributed ledger technology’s ability to generate secure records, process highly complex transactions in record time, and provide an environment that’s hacker-proof, it lends itself well to the financial industry.

We are going to see an increasing proliferation of traders using blockchain technology to:

· Create smart contracts

· Buy and sell digital currencies as their own asset class

· Trade NFTs for high net worth individuals

· Generate private blockchains e.g. hedge fund trading platforms like Strix Leviathan

· Settle trades quickly via blockchain-enabled integrations like Linq on stock exchange sites

What captains of the financial industry are saying about blockchain in trading

The transformative impact of distributed ledger technology has been highlighted time and time again by industry analysts. Here are a few predictions about the future of blockchain from financial captains of industry from around the globe:

“[Blockchain] is the biggest opportunity set we can think of over the next decade or so.”

- Former Nasdaq CEO, Bob Greifeld

Blockchain technology isn’t just a more efficient way to settle securities. It will fundamentally change market structures, and maybe even the architecture of the internet itself.”

- CEO Fidelity Investments, Abigail Johnson

Everything will be tokenized and connected by a blockchain one day.”

- Co-Founder Coinbase, Fred Ehrsam

Bitcoin will do to banks what email did to the postal industry.”

- Swedish IT entrepreneur, Rick Falkvinge

Blockchain is the tech and Bitcoin is merely the first mainstream manifestation of its potential.”

- Founder of Bitcoin Chaser, Marc Kenigsberg


Looking at the direction distributed ledger technology is heading, it’s safe to say that the future of blockchain in the financial sector will be disruptive indeed. Blockchain is now an integral function of the financial industry that one almost cannot imagine the sector without it.

This is the final post in my Chain v Off-Chain Blockchain and Traders series.




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David Streltsoff

David Streltsoff

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