Whether to transform digital transactions using smart contracts or to ensure transparency and data integrity, startups are harnessing the power of blockchain-led transformation to capture opportunities spanning across industries. Against this backdrop, the Unicorn Prediction Model of GlobalData, a leading data and analytics company, has released a list of 25 blockchain startups that have the potential to become unicorns (startups with valuation > US$1bn).
Based on GlobalData’s Startup Scorecard ranking of 10,000 top startups, 126 blockchain startups globally are shortlisted, of which the company’s proprietary machine learning model has predicted 25 to become future unicorns.
Apoorva Bajaj, Practice Head of Financial Markets at GlobalData, says: “With growing demand for cryptocurrencies and decentralized finance picking up pace, blockchain is expected to become mainstream from being disruptive. Startups working on blockchain applications have received record amounts of venture capital (VC) funding for use-cases extending beyond crypto and financial services to gaming platforms, media and entertainment and advertising.”
VC funding in the blockchain and crypto startups have significantly increased in the first half (H1) of 2021 as compared to last five years. At the current rate of investment, GlobalData expects more active jobs in the blockchain space and enhanced enterprise blockchain solutions to emerge offering platform for developers and businesses.
Mr Bajaj continues: “Blockchain technology is already revolutionizing financial services with the use of smart contract-based solutions. However, with growing investors’ interest, GlobalData expects strong tailwinds for blockchain adoption beyond financial services and cryptocurrency.
GlobalData’s recent report, ‘Future Blockchain Unicorns – 30 July 2021’, reveals that blockchain funding is set to soar during 2021 with number of crypto and platform focused companies expected to be future unicorns. The report also highlights that early-stage startups recorded the highest number of deals and North America reported over 40% of global deals in Q2 2021 followed by Asia-Pacific.
Some of the blockchain startups in GlobalData’s list of potential unicorns include Spring Labs, Symbiont, Fireblocks and Alchemy.
Spring Labs, an advanced cryptography and blockchain-based fintech firm, is developing ‘Spring Protocol’ network to let members securely communicate without disclosing the underlying data or the identities of network users.
US-based Symbiont has developed ‘Assembly’, a decentralized distributed ledger technology (DLT), which enables financial institutions and companies to use smart contracts to automate business operations on a decentralized network. In addition, it offers mortgage, loan, private equity and crowdfunding, debt, asset digitalization, and other options.
Fireblocks, a custody and blockchain infrastructure company, uses its patent-pending chip isolation security and MPC technology and provides wallets for crypto money transfers, crypto exchange platforms, crypto trading platforms, asset tokenization, and tools for crypto transaction control and automated governance.
Alchemy is a blockchain-based platform that allows developers to create their own decentralized apps and promote blockchain development. Its solutions include APIs, infrastructure, monitoring, analytics and developer tools. Augur, Cryptokitties, Radar Relay, Kyber, OpenSea, and other leading blockchain projects rely on Alchemy to support their core infrastructure needs.
Mr. Bajaj concludes: “So far, blockchain and cryptocurrencies are experiencing a good year with significant increase in VC funding for blockchain startups; strong demand for cryptocurrencies by consumers (Gen-Z and Millennials) and institutions (major investment banks). It will be interesting to see how blockchain adoption continues to accelerate and disrupt not only the financial services industry or crypto market, but also other industries.”