Top use cases for blockchain technology 2021

In 2021, cross-border payments and settlements were considered the largest individual blockchain technology use case, accounting for close to 16 percent of the global blockchain technology market. Lot lineage and provenance also accounted for a larger portion of the market share, with 10.7 percent.

Cross-border payments and settlements

Cross-border payments and settlements have become a popular use case for blockchain technologies as it allows for money transfers, or in another word, remittances, between countries. Throughout the world, consumers and businesses transmit large quantities of money internationally and in the past this process has remained relatively expensive with bank transfers and currency conversion. However, more recently, the banking industry has become the dominant worldwide sector for blockchain technologies, allowing consumers and businesses to transmit money internationally and improve remittances, decrease costs, and minimize exposure to cryptocurrencies. With the banks using blockchain technology themselves, they eliminate the “middleman”, which in this case is cryptocurrency. This increased popularity in the process is leading to the anticipated increase in the worldwide blockchain technology market size in coming years.

Lot lineage and provenance

The other popular use case that holds a significant portion of the market for blockchain technologies is lot lineage and provenance, which has impacted the business operations of organizations specializing in B2B software, IT, and computer services. This use case very simply allows for the verification of the origin and authenticity of product components as it progresses throughout the value chain. In other words, it acts as a product genealogy. Lot lineage and provenance as a use case assists in regulatory compliance, specific recalls, and prevents counterfeit components.