Blockchain Development: Market Size and Future Outlook

• This article introduces the size of the blockchain market — which has drawn attention in recent years alongside cryptocurrency — and its future outlook.

1. Blockchain Overview

What exactly is blockchain? Put simply, it refers to a system that allows a transaction ledger to be shared.

The internet, which most people now take for granted, has the advantage of making it easy to copy digital data — but this is also its drawback, since it makes digital data hard to protect in terms of value.

Blockchain succeeded in making digital data difficult to copy by changing how the transaction ledger links from one block to the next.

A key feature is having no central authority, such as a central bank, managing currency exchange. Rather than relying on a few central banks or major corporations, blockchain manages currency and information in a decentralized way, aiming to build a new order.

2. Blockchain Market Size: Forecast for Japan

How will the domestic blockchain market size develop going forward?

Let's forecast based on the「Report Summary on Infrastructure Development for Japan's Digital Economy (Survey on Trends in Blockchain-based Services)」published by METI's Information Economy Division.

Blockchain is expected to expand its range of applications beyond any single specific field.

For example, the report cited above forecasts a market size of 32 trillion yen for “realizing open, highly efficient, and highly reliable supply chains.” Target fields include retail, precious-metal management, and authenticity verification for artwork.

The impact goes beyond market size alone — it is also expected to affect the industrial structure as a whole.

For example, in conventional supply chains, inventory information

was fragmented across retailers, wholesalers, and manufacturers, with commercial flow data concentrated at retailers. Sharing this data energizes and streamlines the whole supply chain, while strengthening manufacturers' negotiating power.

Home appliances are also expected to become trackable throughout their product life cycle after sale, making it easier to shift away from one-time-sale business models.

3. Blockchain Market Size: Global Forecast

How does the global market size compare to the domestic one?

As a source for forecasting the global market, IDC Japan published the「Worldwide Semiannual Blockchain Spending Guide」in September 2019.

Worldwide blockchain spending is forecast to reach about $15.9 billion (roughly 2 trillion yen) in 2023.

IDC expects blockchain spending to grow steadily from 2018 through 2023, at a five-year CAGR of 60.2%. Since this forecast dates back to 2018, the market is likely growing even faster today than originally predicted.

4. Future Outlook for Blockchain Development

Looking ahead, one keyword drawing attention in blockchain development is DeFi2.0.

Before discussing DeFi2.0, what exactly is DeFi in the first place? DeFi refers to “decentralized finance,” which emerged in 2020. DeFi 2.0 is a term describing a new generation of decentralized applications (DApps) for DeFi. Simply put, it is like an unmanned bank that exists online.

Many people worldwide lack a bank account, and DeFi is drawing attention as a way to offer them banking functions — deposits, exchange, and lending.

DeFi 1.0's problem was platform usability: decentralized products were hard for beginners, so active users stayed limited to experienced crypto enthusiasts.

DeFi2.0 emerged to fix the problems seen in DeFi1.0. DeFi2.0 lowers entry barriers and creates new revenue opportunities for crypto holders.

Blockchain is inherently financial technology and pairs well with DeFi, so the DeFi market is expected to see major growth again in 2022.

5. Miichisoft's Strength in Blockchain Development

With extensive experience in blockchain, web system, and AR/VR development, Miichisoft delivers high-quality products at reasonable prices.

Our strength is an extensive track record of outsourced projects from Japan. Using our services brings the benefits below — so if you're considering blockchain or Vietnam offshore development, feel free to contact us.

• Point 1: Enables low-cost, high-quality system development.
• Point 2: Enables system development without slowing down speed.
• Point 3: Gives you access to highly skilled talent without needing to hire them yourself.
• Point 4: We support your expansion into Vietnam or Southeast Asia.