Royal Bank of Canada reports: Encryption of currency and blockchain technology unlocks $ 10 trillion market

nBankruptcy Review: A recent report by RBC said that cryptocurrency, blockchain technology and decentralization are likely to be a $ 10 trillion ecosystem. Mitch Steves, equity strategist at RBC subsidiary Capital Markets, also gave an optimistic analysis of the reasons for the centralization of the future of trading services and pointed out that despite the many risks in the cryptocurrency space, as technology continues to evolve , The market opportunity is still great.n
nTranslation: Clovern
A research analyst at Royal Bank of Canada (RBC) believes cryptocurrency, blockchain technology and decentralization are likely to be a $ 10 trillion ecosystem.n
In a new report released on Wednesday, Mitch Steves, equity strategist at RBC’s Capital Markets, conducted an optimistic analysis of the reasons for the centralization of the future of trading services. He wrote: “Although there are many risks in the cryptocurrency space, opportunities are still great as technology continues to evolve.”n
While decentralized alternatives to implementing cryptocurrency as a proprietary service or startups that are remittances receive the most attention during the formation of the ecosystem as a whole, Steves believes that the protocol layers (the underlying protocols that build these services) Is the focus of most of the value.n
n”We think the protocol layer will realize more value than the application,” he wrote in the report and added:n
“As the application succeeds, the protocol layer gains more value, bringing more focus to additional decentralized application development.”n
nSo this coincides with the “fat protocol theory” put forward by Union Square Ventures that the value creation of decentralized cryptocurrencies will occur at lower levels Infrastructure layer.n
The report also claims that the cryptocurrency mining market has gained a firm foothold and believes the market for bitcoin mining equipment has reached at least $ 4.2 billion. In addition, the mining market value of other cryptocurrencies using ASIC mining, such as bitcoin, is 3.5 The market value of $ 450 million, Ethereum, and Monroe, using GPU mining, was $ 1.9 billion.n
It is noteworthy that the report considers the decentralization technology at this stage to be misunderstood and underestimated, claiming that cryptocurrencies can handle more and more transactions better. In particular, Steves sees the Lightning Network as a tool that can help Bitcoin achieve millions of transactions per second.n
However, scalability, as well as the advent of government intervention and more sophisticated wallet attacks, have also been identified as one of the major risks facing the ecosystem.n
However, Steves said that continued advances in these areas, whether based on Ethereum or other alternative underlying protocol chains, will benefit the development and mainstream adoption of the world’s supercomputer as long as the impeccable security record of the blockchain remains untainted.n
n”As capacity expansion and protocols mature, the value of a decentralized computer can become a trillion-dollar market,” Steves wrote and concluded: “If we use a very positive approach to technology we all agree on If you say that blockchain has never been hacked, what happens if we build applications based on this layer of security? “n

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