64 Blockchain
BLOCKCHAIN FOOTPRINT IN MULTIPLE SECTORS
In this section, we will do a deep dive across blockchain footprints in various
sectors. Each section is categorised by its sector and multiple sub-sectors have
been included within its parent sector. One of the dynamic sectors is of course
financial sector that is trying to use blockchain to disrupt its businesses.
Financial services sector
It is a building block of modern society without which the economy cannot
function. It is like an engine of the economy. The following are subcatego-
ries within the financial sector.
Capital markets
Overview
Capital markets term in financial services refers to markets where funds
are exchanged between suppliers and users of the capital. The suppliers of
the capital can be banks and investors who would like to utilise their capi-
tal for investments in the hope to grow it. The users of the capital can be
businesses, governments and individuals who seek capital to grow busi-
ness, government investments like constructions (building bridges, town
centres, houses, roads etc.) and individuals who want to buy a house etc.
The most common capital markets are stock and bond markets to raise
capital for various purposes.
In summary, capital markets are venues where funds/capital can be
exchanged between suppliers of the capital and those who seek capital.
There are two kinds of capital markets: primary capital market and sec-
ondary capital market.
1. Primary capital market: markets where new securities (stocks and
bonds) are issued like the stock market to raise capital from the public
(IPO – Initial Public offering)
2. Secondary capital market: Markets where already issues in securities
are traded between investors through exchanges like the London stock
exchange (LSE), the New York Stock Exchange (NYSE), Nasdaq, etc.
Blockchain footprint
As of Q3, 2022, the global stocks are worth about $111 trillion.* There has
been also an IPO boom with some of the biggest IPO have had their debut.
Some of the biggest debuts were Snowflake and Airbnb IPO which took the
2020 IPO to a record level of $175 billion in the USA.
* Source: https://www.sifma.org/resources/research/research-quarterly-equities/