The Role of Cryptocurrency and Blockchain in the Growth of the Global Smart Contract Market

03/09/2023 20:09 • Digital Disruptors • 79 views

It is reported that according to Zion Market Research, the global smart contract market size will be about 1.75 billion US dollars in 2022, and is expected to grow to about 9.85 billion US dollars by 2030, with a CAGR of about 24% between 2023 and 2030. Cryptocurrency plays a crucial role in the use of smart contracts. The blockchain developed by Ethereum is a decentralized open source blockchain, which is considered to be the most basic building block of applications related to decentralized finance (Defi).

Report: The size of the global smart contract market is expected to grow to about US $9.85 billion by 2030

Analysis based on this information:

A recent report released by Zion Market Research predicts a significant growth in the global smart contract market size in the coming years, driven in part by the increasing popularity of cryptocurrency and blockchain technology. According to the report, the market size for smart contracts is expected to reach approximately 1.75 billion US dollars by 2022 and grow to 9.85 billion US dollars by 2030, representing a compound annual growth rate (CAGR) of approximately 24% between 2023 and 2030.

Smart contracts are self-executing digital contracts that enable participants to exchange assets without requiring intermediaries such as banks or lawyers. They are programmed using computer code, and their execution is automated and irreversible. These contracts are becoming increasingly popular in a variety of industries, including finance, real estate, and supply chain management, due to their ability to increase transaction efficiency, lower costs, and reduce the risk of fraud.

Cryptocurrency, particularly the blockchain developed by Ethereum, plays a crucial role in the use of smart contracts. Ethereum is a decentralized open-source blockchain that provides a platform for building decentralized applications (DApps) using smart contracts. It is considered to be the most basic building block of applications related to decentralized finance (Defi). In Defi, traditional financial instruments such as loans and insurance are replaced with smart contracts that automatically execute when certain conditions are met.

The growth of the smart contract market is closely tied to the growth of Defi, which has seen explosive growth in recent years. The total value locked in Defi protocols has grown from just over $1 billion in mid-2020 to over $100 billion as of May 2021. This growth has been driven by the increasing popularity of cryptocurrency and the growing interest in decentralized finance as an alternative to traditional finance.

In conclusion, the growth of the global smart contract market is expected to be driven by the increasing popularity of cryptocurrency and blockchain technology, particularly Ethereum. The use of smart contracts in decentralized finance is expected to be a key driver of growth, as it offers a more efficient and cost-effective alternative to traditional finance. As such, companies and investors in the blockchain space should pay close attention to developments in the smart contract and Defi markets.

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