Blockchain Messaging Apps Market Gains Traction
Messaging apps such as WhatsApp, Messenger, and WeChat are used daily as primary means of communication. Although centralized messaging apps are favored more by consumers, blockchain messaging apps are on the rise. Blockchain messaging apps provide a reliable decentralized alternative while offering users with highly secure and private communication features.
With is rise in popularity, the global blockchain messaging apps market size is expected to reach $536.5 million by 2030, growing at a CAGR of 43.6% from 2022 to 2030, according to a new study conducted by Grand View Research.
The growth of the market is attributed to its decentralized end-to-end encryption technology, providing high security to users. Blockchain messaging apps have no central server that stores text messages or serves as a relay between the sender and receiver. This prevents any kind of interception or a record.
Furthermore, no service provider is involved in the message delivery process, whereas more mainstream messaging apps do have service providers in-between, according to the study. This eliminates risks associated with service providers.
Other big factors in the growth are the rise in access to the internet, frequent development in internet speed with the deployment of the 5G and 6G technologies, as well as the growing smartphone penetration.
Speaking of smartphones, the upgrades to operating systems and smartphones increased the functionality of messaging applications. One example is Signal. The app introduced a feature that enables users to send payments in cryptocurrencies to their contacts. That is one of the technological advancements that is expected to propel market growth even further.
And with more people worldwide using smartphones (with access to 5G and eventually 6G), they have more access to social media platforms, as well. Naturally, social media is a way for products and apps to gain popularity, driving market growth. Most already see how the blockchain in general is gaining traction.
Still, there are challenges, also brought up by Grand View Research. Blockchain messaging apps are considered expensive to run and maintain compared to traditional messaging platforms. Blockchain messaging apps are also slow compared to traditional messaging apps. This is because all nodes on the network must verify each transaction in blockchain messaging before its completion.
The last challenge is the lack of knowledge about blockchain-based messaging apps among developing economies. This restrains and hinders the growth of the market.
But with more exposure to these apps, consumers naturally gain better knowledge on how decentralized messaging functions, as compared to WhatsApp and Messenger. It’s only a matter of time before blockchain messaging apps gain a stronger foothold and rise up to expected market growth.
Edited by Alex Passett
