I recently discussed Pakistan’s emerging role in the crypto space with Raza Rumi on Naya Daur TV. At its core, blockchain is a revolutionary digital ledger system—secure, decentralized, and distributed across many computers without reliance on any central authority. Imagine it as a shared notebook where every transaction or contract is permanently recorded, visible to authorized parties, and immutable. Cryptocurrencies like Bitcoin are just one aspect of blockchain technology; its applications extend much further, including supply chain tracking, loan management, and real estate records. It’s crucial to differentiate between cryptocurrencies, which dominate headlines, and the broader blockchain potential, which presents both opportunities and challenges. Blockchain emerged in 2008, conceived by the enigmatic Satoshi Nakamoto—possibly an individual or group—with the vision to disrupt banks and intermediaries by creating trustless systems. However, by mid-2025, this vision remains imperfect: promising in theory but hindered by slow transaction speeds, security risks, and ambiguous practical benefits. The technology is still evolving and merits skeptical scrutiny. **Genesis and Hype** During the 2008 financial crisis, Satoshi proposed Bitcoin, pioneering the first blockchain-backed cryptocurrency designed to allow electronic transactions without trust in a middleman. Nakamoto remained anonymous after launching Bitcoin’s first block in January 2009, embedding a headline criticizing bank bailouts—a symbolic gesture against centralized financial control. Satoshi disappeared in 2010, leaving behind roughly one million Bitcoins, intended to provide financial access to the unbanked. In 2015, Vitalik Buterin introduced Ethereum, expanding blockchain’s use through “smart contracts”—self-executing agreements resembling automated vending machines for loans or property deals. The 2017 crypto boom fueled massive investments and speculative fervor. Beyond crypto, corporations like Walmart adopted blockchain to track food safety, and IBM’s Food Trust initiative followed suit, lauded for enhancing supply chain transparency. Traditional banks joined cautiously; JPMorgan’s Jamie Dimon initially criticized crypto but later launched Onyx in 2020 to harness blockchain for financial improvements. **Market and Meaning** The global blockchain market—encompassing software, networks, and services—grew from $12. 4 billion in 2023 to an anticipated $20. 1 billion in 2024, with projections of $248. 9 billion by 2029. Despite rapid growth, this remains small compared to the $7. 5 trillion handled daily in conventional finance. Decentralized finance (DeFi) platforms, another blockchain innovation enabling bankless borrowing and trading, are forecast to exceed $100 billion by 2025. However, not all investments yield success; some initiatives fade without impact. Over 100 nations, including China and European countries, explore central bank digital currencies (CBDCs) built on blockchain for secure, efficient payments. **Institutional Adoption** Major banks and governments avoid crypto’s wild volatility, instead employing blockchain to modernize legacy systems. JPMorgan Chase, once skeptical, embraced blockchain with Onyx, facilitating rapid payments through JPM Coin and a network linking over 400 banks. Goldman Sachs offers crypto trading to institutional clients and experiments with blockchain to accelerate bond transactions, promising cost and time savings. BNY Mellon and HSBC venture into digital asset custody and blockchain-enabled gold trading. Citibank utilizes the technology for securities processing. Governments also test blockchain-based CBDCs; the U. S. Federal Reserve’s FedNow, launched in 2023, improves transfer speeds inspired by blockchain. Rather than the anarchic ethos Satoshi imagined, these institutions adapt blockchain within strict regulatory frameworks. **Case Study: DBS Bank’s Practical Blockchain** Singapore’s DBS Bank exemplifies controlled blockchain application. Unlike Bitcoin’s public ledger, DBS employs private blockchains accessible only to trusted participants. In October 2024, DBS launched “DBS Token Services, ” integrating blockchain with its payment platform to enable instant, 24/7 settlement. A pilot with Ant International used “Treasury Tokens” to seamlessly transfer money across currencies without banking hour delays. DBS also partnered to distribute grants via smart contracts, ensuring transparent and automated funding to qualified tech firms. Since 2020, DBS Digital Exchange handles digital bonds, shares, and crypto custody securely and compliantly, balancing transparency with regulatory adherence. According to DBS’s Lim Soon Chong, this approach serves clients efficiently while reducing costs and delays. **Potential Federal Reserve Use for Treasury Bonds** Could the U. S. Federal Reserve leverage blockchain similarly for its $27 trillion Treasury bond market?

Currently, trading and record-keeping are slow and intermediated. Blockchain could offer a tamper-proof, instantaneous ledger visible to all stakeholders, improving clarity and efficiency. The Fed may opt for a private blockchain, ensuring control and regulatory compliance contrary to crypto’s open model. Project Guardian, involving the Fed and banks like DBS, explores this potential, aiming to accelerate processes while reducing expenses. Nonetheless, the challenges are formidable—requiring unbreakable security, scalability, and regulatory clarity. As Fed Governor Michelle Bowman noted in 2024, innovation must be balanced with safety. Blockchain is not yet ready to overhaul bond markets, but a measured approach similar to DBS offers promise. **Challenges and Flaws** Cryptocurrencies remain volatile, unstable, and far from mainstream money, with daily crypto volume (~$100 billion in 2025) dwarfed by conventional finance (~$7. 5 trillion). As ECB President Christine Lagarde stated in 2021, crypto is more spectacle than systemic threat. Blockchain networks suffer slow transaction speeds—Bitcoin processes 7 transactions per second, Ethereum about 30, while Visa handles around 1, 700. Energy consumption is massive; Bitcoin mining alone uses roughly 150 terawatt-hours annually, comparable to a small country, prompting Elon Musk to halt Tesla’s Bitcoin payments in 2021. Criminal activity is a serious concern. In 2023, ransomware actors received $449. 1 million in cryptocurrency payments, exploiting blockchain’s pseudonymity. High-profile hacks like Mt. Gox ($450 million lost in 2014), Poly Network ($610 million in 2021), and Wormhole ($320 million in 2022) reveal vulnerabilities. Security experts acknowledge blockchain’s core is secure, but applications built atop are often weak links. **Is Blockchain Always Needed?** Often, traditional databases—faster and cheaper—serve better for many tracking needs such as healthcare records or voting. Private blockchains like DBS’s reject the original trustless concept, leading Microsoft’s Bill Gates to remark in 2018 that many blockchain projects are “solutions in search of a problem. ” Transaction fees on platforms like Ethereum can be prohibitively high. Regulatory pressures mount: China bans crypto outright, and the U. S. intensifies crackdowns. Former Goldman Sachs executive Gary Cohn highlighted significant legal risks in 2022, though some niches—like DBS’s approach and parts of DeFi—demonstrate viable use cases. **Conclusion** By May 2025, blockchain’s trajectory diverges. The market’s rapid expansion—from $12. 4 billion in 2023 toward a possible $248. 9 billion by 2029—depends on overcoming technical, security, and regulatory challenges. Crime, legal uncertainty, and emerging threats like quantum computing, as noted by Michio Kaku, loom. While crypto’s share remains minor relative to traditional finance, institutional uses such as DBS’s private blockchain and potential Federal Reserve implementations provide guarded optimism. Satoshi’s vision—creating a cash system without intermediaries to empower the unbanked—remains inspiring, echoed by Vitalik Buterin’s smart contracts and institutional experiments. Yet, enthusiasm must be tempered. Cryptocurrency is not genuine money; rampant speculation and crime undermine its promise. High-profile hacks expose critical vulnerabilities. Experts like Ray Dalio and Joseph Stiglitz warn of hype and bubbles. Blockchain technology holds considerable promise to modernize finance and supply chains but must overcome serious issues of speed, energy consumption, and security. Leaders such as Janet Yellen, Bill Gates, and Christine Lagarde urge caution. Ultimately, blockchain is a powerful but imperfect tool—worthy of careful testing, not blind faith.