In this article, we will look at the 15 most advanced countries in blockchain technology. We have also discussed the global blockchain market along with key players. If you want to skip our detailed analysis, head straight to the 5 Most Advanced Countries in Blockchain Technology.
According to Fortune Business Insights, the global blockchain technology market, valued at $17.5 billion in 2023, is anticipated to witness a whopping compound annual growth rate (CAGR) of 59.9% from 2023 to 2030, reaching a valuation of $469.49 billion by the end of the forecast period. This growth trajectory is propelled by the expanding acceptance of cryptocurrencies worldwide and the increasing adoption of blockchain technology in financial and retail sectors. The market is further buoyed by services like Blockchain as a Service (BaaS), which enables small and medium-sized enterprises (SMEs) to explore blockchain applications without the complexity of in-house development.
In terms of trends, cryptocurrencies play a pivotal role, incentivizing blockchain infrastructure development and driving innovation in scalability, privacy, and interoperability. The market is witnessing an increase in diverse blockchain applications beyond cryptocurrencies, such as supply chain management, cross-border payments, lot lineage/provenance, trade finance, and identity management.
The outlook for the blockchain market remains promising, especially with North America leading in technology development and adoption. However, regulatory uncertainties pose challenges, necessitating market players to navigate complex legal frameworks. Moreover, the shortage of skilled talent in blockchain development acts as a barrier to realizing its full potential.
However, it is also worth highlighting that after a cryptocurrency downturn, which eroded over $1 trillion of investors’ wealth since 2021, renewed optimism is emerging. However, the US risks lagging behind due to its sluggish stance on crypto regulation, potentially missing out on the recovery of digital assets and blockchain technology. Data reveals a concerning trend: the share of blockchain developers in the US has declined annually since 2018, indicating a shift in the global landscape.
Despite these challenges, there are still signs of blockchain investment within the US Franklin Templeton and Walt Disney have made major moves into blockchain applications. Additionally, anticipation surrounding the approval of the first bitcoin exchange-traded fund suggests a potential resurgence in enthusiasm. However, if the US fails to retain the loyalty of blockchain innovators, it risks losing its influence over this transformative technology, potentially ceding ground to regions with more favorable regulatory environments.
Nevertheless, the blockchain market offers vast opportunities, particularly in emerging regions like Asia-Pacific, where favorable regulatory environments and government initiatives drive market growth. As blockchain continues to evolve, stakeholders must stay abreast of market dynamics, technological advancements, and regulatory changes to capitalize on emerging opportunities and overcome existing challenges.
Let’s look at some key players in the blockchain technology and their recent developments.
Bit Digital, Inc (NASDAQ:BTBT) recently secured an agreement for 6 megawatts of additional hosting capacity for its miners. The agreement, finalized with a subsidiary of Coinmint LLC in Massena, New York, boosts Bit Digital’s total contracted hosting capacity to about 46 MW. With an initial one-year term and automatic renewals, Bit Digital, Inc (NASDAQ:BTBT) plans to deploy approximately 2,340 S19k Pro mining units purchased for $3.4 million, equating to roughly $13/TH, at the facility.
Bit Digital, Inc (NASDAQ:BTBT) aims to achieve this growth incrementally to facilitate strategic procurement decisions and enhance both scale and fleet efficiency. Bit Digital, Inc (NASDAQ:BTBT) operates bitcoin mining operations across the US, Canada, and Iceland, alongside offering infrastructure services for AI applications through its Bit Digital AI business line.
Bit Digital, Inc (NASDAQ:BTBT) is also one of the most valuable blockchain companies in the world.
On the other hand, Robinhood Markets, Inc (NASDAQ:HOOD) is a key American financial services firm renowned for its commission-free electronic trading platform. Since its inception in March 2015, the company’s mobile app has enabled users to engage in seamless trades of stocks, exchange-traded funds (ETFs), and cryptocurrencies, including individual retirement accounts. As a FINRA-regulated broker-dealer and a member of the Securities Investor Protection Corporation, Robinhood Markets, Inc (NASDAQ:HOOD) ensures compliance with US Securities and Exchange Commission standards, offering a secure trading environment.
Robinhood Markets, Inc (NASDAQ:HOOD) generates revenue through various channels, including interest from customers’ cash balances, selling order information to high-frequency traders, and margin lending. With 23.4 million funded accounts and 10.9 million monthly active users as of December 2023, Robinhood Markets, Inc (NASDAQ:HOOD) has become a major player in the financial technology sector. Notably, Robinhood Markets, Inc (NASDAQ:HOOD) expanded its services by introducing a cryptocurrency wallet to over 2 million users in April 2022, further solidifying its position in the market.
A bustling server farm, reflecting the company’s investment into cryptocurrency mining.
Our Methodology
We assessed the advancement of countries in blockchain technology using two main criteria. Firstly, we examined the number of blockchain patents granted to each country, sourced from CoinClub. Secondly, we analyzed the venture capital funding invested in blockchain technology in 2021, using data from BlockData. For investment rankings, a higher rank indicated greater investment (ranked from 1 to 20), while for patents, a rank of 1 indicated the highest number.
After ranking countries on both sets of data individually, we averaged the rankings from both metrics. We then arranged the countries in ascending order based on their average rankings. We’ve also mentioned their rankings on individual data sets mentioed above.
The choice of these metrics was made to provide a comprehensive evaluation of a country’s advancement in blockchain technology. Patents indicate innovation and development in the field, while venture capital funding reflects investor confidence and financial support for blockchain projects. By considering both metrics, we aimed to capture both the technological and economic aspects of blockchain advancement in each country.
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15. Mexico
Venture Capital: 12
Blockchain Patents: 27
Average Rank: 19.5
Mexico has emerged as one of the best countries for cryptocurrency, ranking 16th globally in crypto adoption. With an increase of 18% year-on-year in transactions on platforms like Bito’s exchange, boasting 8 million users worldwide, Mexico showcases promising signs of adapting to the virtual era of currencies.
To read more about crypto adoption, see 20 Countries with the Highest Cryptocurrency Adoption.
14. Philippines
Venture Capital: 15
Blockchain Patents: 22
Average Rank: 18.5
The Philippines has been as a trailblazer in blockchain technology, evident through its strategic adoption of Hyperledger Fabric for wholesale central bank digital currency trials. Leveraging blockchain’s distributed ledger technology (DLT), the Bangko Sentral ng Pilipinas (BSP) aims to enhance interbank transactions’ efficiency and accessibility.
13. Austria
Venture Capital: 6
Blockchain Patents: 29
Average Rank: 17.5
Austria is at the forefront of blockchain innovation, exemplified by the Austrian Blockchain Centre, a collaborative effort among five leading universities. This center, renowned as Austria’s largest, focuses on practical blockchain implementation and extensive research.
12. Switzerland
Venture Capital: 16
Blockchain Patents: 19
Average Rank: 17.5
Switzerland is a leader in blockchain technology owing to its progressive regulatory environment and innovative financial institutions. PostFinance, a subsidiary of SwissPost and one of Switzerland’s major banks, recently partnered with Sygnum to offer retail cryptocurrency services, becoming the first systemically important bank to do so. With generally high salaries, Switzerland is also known to be one of the best countries for blockchain developers.
11. Brazil
Venture Capital: 9
Blockchain Patents: 18
Average Rank: 13.5
Brazil is at the forefront of blockchain technology with its innovative approach to enhancing security in data management. The government’s implementation of blockchain for the new national identity card system demonstrates a commitment to combating fraud and improving efficiency. Spearheaded by the Federal Data Processing Service (Serpro), Brazil’s blockchain network, b-Cadastros, facilitates secure data sharing among governmental bodies. The new blockchain-enabled ID cards offer a digital version with enhanced authentication features, including a printed QR code.
10. Australia
Venture Capital: 17
Blockchain Patents: 7
Average Rank: 12
Australia is considered a blockchain leader due to its proactive approach to regulatory frameworks, showcased by Ripple’s recent policy summit in Sydney. Attended by global policymakers and industry leaders, discussions revolved around Australia’s proposed regulations for digital assets, aiming to integrate them into existing financial frameworks overseen by ASIC.
Australia is also one of the most advanced countries in space exploration.
9. Japan
Venture Capital: 18
Blockchain Patents: 4
Average Rank: 11
Japan is one of the countries with the best blockchain technology. With the cabinet’s approval of a bill enabling venture capital firms to invest in crypto assets, Japan paves the way for burgeoning Web3 startups. This legislation, if ratified, promises to invigorate Japan’s blockchain and decentralized finance sectors. Despite challenges, such as profitability concerns for stablecoin issuers, Japan’s regulatory clarity positions it as a global leader in blockchain governance, setting a precedent for others to follow.
8. Germany
Venture Capital: 13
Blockchain Patents: 8
Average Rank: 10.5
Germany is one of the top 10 most advanced countries in blockchain technology, evidenced by initiatives like Union Investment’s launch of a blockchain fund. With €455 billion ($493 billion) in assets under management, Union Investment is a major investor in tokenized assets, including digital bonds from the European Investment Bank and Siemens. The UniThemen Blockchain fund reflects Germany’s commitment, allocating up to 15% of its assets to crypto tokens and the majority to blockchain-related stocks and assets.
On a side note, Germany is also one of the highest paying countries for bankers.
7. Singapore
Venture Capital: 7
Blockchain Patents: 12
Average Rank: 9.5
In Singapore, blockchain technology has garnered huge traction, especially among financially savvy individuals, with over half owning cryptocurrencies. Staking has emerged as a prominent use case, with 55% utilizing centralized exchanges and 38% engaging with decentralized finance (DeFi) apps for staking activities. These numbers confirm that Singapore is one of the most popular countries in blockchain technology in 2024.
6. Hong Kong
Venture Capital: 3
Blockchain Patents: 15
Average Rank: 9
Hong Kong is a vanguard in blockchain technology, evident through its stringent regulatory measures and proactive approach. The Securities and Futures Commission (SFC) of Hong Kong has been vigilant against fraudulent crypto exchanges, exemplified by its recent warning against HKCEXP for falsely claiming SFC registration.
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Disclosure: None. 15 Most Advanced Countries in Blockchain Technology is originally published on Insider Monkey.