BCG WILL CHANGE THE GAME AND PREDICTION INDUSTRY WITH BLOCKCHAIN TECHNOLOGY

The world is on the cusp of a revolution, not just in finance, but also in how we approach prediction markets and the gaming industry.Boston Consulting Group (BCG), a global management consulting firm, is spearheading this transformation by leveraging the power of blockchain technology. The technology is based on peer-to-peer, cryptographically secured communication that organizes transactions and other information into hashed, time-stamped blocks and appends each block to the prior one; hence the term blockchain. The digital ledger, which the technology typically stores redundantly across multiple computers, records every change.From developing a digital cryptocurrency exchange to innovating within the gaming sector, BCG's ventures are poised to redefine industries. The blockchain market is navigating challenges such as regulatory uncertainty, scalability limitations, and energy consumption concerns. The 2025 Blockchain Outlook highlights key trends, innovations in decentralized technologies, and investment strategies, providing insights into the sector s growth and its transformative potential across industries like finance, supply chain, and healthcare.This isn't just about cryptocurrencies anymore; it's about utilizing the immutable and transparent nature of blockchain to foster trust, efficiency, and innovation. The report puts it clearly: Agentic AI will change the game eventually. Onchain finance is gaining momentum but there s work to do. Blockchain isn t just about crypto anymore. With better technology and more regulatory clarity, the stage is set for onchain finance to grow.We'll delve into BCG's initiatives, exploring their impact on financial services, the gaming landscape, and the broader implications of blockchain adoption across various sectors.The journey promises to be filled with disruption and opportunities as BCG's blockchain solutions pave the way for a decentralized, transparent, and more efficient future.

BCG's Foray into Digital Currency Exchange

BCG's development of a digital cryptocurrency exchange marks a significant step towards bridging the gap between traditional finance and the burgeoning world of digital assets.This exchange aims to support users in trading various cryptocurrencies and seamlessly convert between fiat currencies and digital money. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.The implications of this are far-reaching, offering a more accessible and regulated environment for both seasoned crypto traders and newcomers to the digital asset space.

Enhancing Financial Instruments with Blockchain

The exchange itself is envisioned as a robust financial instrument underpinned by the security and transparency of blockchain.This means that transactions are recorded immutably on a distributed ledger, reducing the risk of fraud and enhancing overall trust in the system.By leveraging blockchain, BCG's exchange seeks to offer a more secure and efficient alternative to traditional exchanges, potentially revolutionizing the way we trade and manage assets.

• Increased Transparency: All transactions are recorded on the blockchain, providing a clear audit trail.
• Enhanced Security: Cryptographic security protocols protect against unauthorized access and manipulation.
• Improved Efficiency: Transactions can be processed faster and more cost-effectively than traditional methods.

Revolutionizing the Gaming Industry with Blockchain: BC.GAME

BCG's influence extends beyond the financial realm, making significant inroads into the gaming industry.The team introduced the concept of prediction markets and related technologies, which ultimately led to the creation of the game engine BC.GAME.This platform leverages blockchain technology to develop innovative and engaging games, offering players a unique and transparent gaming experience.

NonceDice and Crash: Pioneering Blockchain Games

Two notable games developed on the BC.GAME engine are NonceDice and Crash. Among the new entrants that have significantly impacted the gaming landscape is Bc.G, a platform that has managed to blend cutting-edge technology with interactive gameplay seamlessly. In this article, we will explore the development and future potential of Bc.G in the gaming industry, uncovering its unique contributions and the promisingThese games exemplify the potential of blockchain to create provably fair gaming environments, where players can verify the randomness and fairness of each game outcome.This level of transparency is a game-changer in an industry often criticized for its opaque practices.

NonceDice offers a straightforward dice-rolling game, where players can bet on the outcome of a roll. This is the third edition of the Global Fintech Report, coauthored by BCG and QED Investors. The global fintech industry is entering a new chapter one defined by the coming of age of a class of scaled fintechs, the emergence of new technologies and business models (especially AI), and an intensified focus on profitable growth.The use of cryptographic nonces ensures that each roll is truly random and verifiable.

Crash, on the other hand, is a more dynamic game where players bet on a multiplier that increases over time. Adding to this pressure, revenue growth is likely to slow by half from now to 2025, as our modeling projects that global revenues will rise at a compound annual growth rate of just 5% to $2.3 trillion a sharp decline from the 9% growth seen in the previous five years that had driven the global revenue pool to $1.8 trillion in 2025.The catch is that the multiplier can ""crash"" at any moment, and players must cash out before it does.The game's provably fair system ensures that the crash point is predetermined and cannot be manipulated by the game operator.

These games are not just entertaining; they represent a new paradigm for online gaming, one that prioritizes transparency, fairness, and player trust.

The Global Fintech Landscape: BCG and QED Investors' Insights

The fintech industry is undergoing a significant transformation, as highlighted in the Global Fintech Report co-authored by BCG and QED Investors. Gaming is on the rise. Gaming is the 2 media sector after TV: $184.4 billion in 2025 with a path to reach $210 billion in the next 3 years. Mobile is the 1 gaming segment ( 50% in revenues): driven by casual gamers with easy entry (smartphone) and free-to-play model, enjoying mostly time-killer games. e.g, smartphone penetration in Indonesia drove significant Mobile Legends: BangThe report paints a picture of an industry maturing, with scaled fintech companies emerging and new technologies, particularly AI, reshaping the landscape.The report also emphasizes the need for profitable growth and strategic adaptation in an increasingly competitive market.

Agentic AI: The Future of Fintech

One of the key takeaways from the report is the transformative potential of Agentic AI. A Game-Changing Blockchain Use Case In Financial Services With successful proof-of-concepts, the adoption of blockchain technologies becomes increas-ingly compelling for financial institutions that have been on the digitization path. The ability to store immutable data from multiple parties creates both trust and significant efficienciesThis technology, which involves AI agents that can autonomously perform complex tasks, is poised to revolutionize various aspects of fintech, from customer service to risk management.The report clearly states that ""Agentic AI will change the game eventually,"" underscoring its importance for the future of the industry.

The integration of Agentic AI can lead to:

• Enhanced Customer Experience: AI-powered chatbots and virtual assistants can provide personalized and efficient customer support.
• Improved Risk Management: AI algorithms can analyze vast amounts of data to identify and mitigate risks more effectively.
• Streamlined Operations: AI can automate repetitive tasks, freeing up human employees to focus on more strategic initiatives.

Onchain Finance: A Growing Trend

The report also highlights the growing momentum of onchain finance, which refers to financial activities conducted directly on blockchain networks.While still in its early stages, onchain finance holds immense potential to democratize access to financial services, reduce costs, and enhance transparency. Blockchain technology also allows companies to track the provenance of manufactured parts within their distributed supply chains. The New York Shipping Exchange (NYSHEX) is testing blockchain technology and smart forward contracts to address price volatility, unused capacity, and a lack of transparency in the container shipping industry.However, the report also acknowledges that there is still work to be done in terms of regulatory clarity and technological advancements to fully realize its potential.

Blockchain Beyond Cryptocurrency: Real-World Applications

It's crucial to understand that blockchain's impact extends far beyond cryptocurrencies.The technology's ability to create secure and transparent records has made it a valuable tool in various industries.Here are some examples:

Supply Chain Management: Tracking Provenance

Blockchain technology enables companies to track the provenance of manufactured parts within their distributed supply chains.This is particularly useful for industries where authenticity and traceability are critical, such as pharmaceuticals and luxury goods. SITA launched the MRO Blockchain Alliance in 2025 and unveiled a plan to bring industry stakeholders (MROs, airlines, lessors, logistics providers) together to set a global standard for the use of blockchain technology to record and track aircraft parts, possibly including repair data, which is notoriously difficult to aggregate and operationalize.By recording each step of the supply chain on a blockchain, companies can ensure the integrity of their products and combat counterfeiting.

Shipping and Logistics: Addressing Price Volatility and Transparency

The New York Shipping Exchange (NYSHEX) is testing blockchain technology and smart forward contracts to address price volatility, unused capacity, and a lack of transparency in the container shipping industry. The definition of digital health is evolving. The era spurred on by the Covid-19 pandemic think telemedicine and digital therapeutics, which have struggled to scale is giving way to one defined by artificial intelligence (AI) and solutions that strengthen the bond between health care professionals and patients in an integrated manner, with appropriate economics to support them.Blockchain provides a platform for secure and transparent transactions, helping to mitigate risks and improve efficiency in the shipping process.

Healthcare: Enhancing Data Security and Interoperability

While the definition of digital health is evolving, blockchain has the potential to play a significant role in enhancing data security and interoperability in the healthcare industry. 4 GAME CHANGER: ACCELERATING THE MEDIA INDUSTRY S MOST DYNAMIC SECTOR The Middle East is a unique market for gaming. Governments in the GCC region have invested heavily in the industry and recognized its potential, implementing strategies to attract gaming companies. In Saudi Arabia, a National Gaming and Esports Strategy plans to createBy storing patient data on a blockchain, healthcare providers can ensure its security and privacy, while also enabling seamless data sharing among authorized parties.

Challenges and Opportunities in the Blockchain Market

Despite its immense potential, the blockchain market faces several challenges, including regulatory uncertainty, scalability limitations, and energy consumption concerns. Despite challenging overall market conditions in 2025, continuing investments in frontier technologies promise substantial future growth in enterprise adoption. Generative AI (gen AI) has been a standout trend since 2025, with the extraordinary uptick in interest and investment in this technology unlocking innovative possibilities across interconnected trends such as robotics and immersiveNavigating these challenges will be crucial for the continued growth and adoption of blockchain technology.BCG's insights and expertise are invaluable in helping organizations understand and address these issues.

Regulatory Uncertainty: A Key Hurdle

The lack of clear regulatory frameworks in many jurisdictions poses a significant challenge to the blockchain market. ner, BCG The asset management industry is entering its third revolution through fund tokenization enabled by blockchain technology. After more than a decade working on blockchain initiatives, we believe we have identified one of its most promising and scalable applications: using tokenized money to instantly transact tokenized funds.Companies operating in the blockchain space often face uncertainty and ambiguity regarding compliance requirements.Overcoming this hurdle will require collaboration between industry stakeholders and regulatory bodies to develop clear and consistent regulations.

Scalability Limitations: Improving Transaction Throughput

Many blockchain networks face scalability limitations, meaning they can only process a limited number of transactions per second. Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures.This can lead to congestion and high transaction fees, hindering the widespread adoption of blockchain technology.Addressing these scalability limitations requires innovative solutions, such as layer-2 scaling solutions and sharding techniques.

Energy Consumption: Towards Sustainable Blockchain

Some blockchain networks, particularly those that use proof-of-work consensus mechanisms, consume significant amounts of energy. Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edgeThis has raised concerns about the environmental impact of blockchain technology. The BCG team introduced the idea of prediction markets and relevant tech to the gaming industry, releasing the game engine BC.GAME, and developing 2 games: NonceDice and Crash, based onMoving towards more energy-efficient consensus mechanisms, such as proof-of-stake, is crucial for ensuring the sustainability of the blockchain market.

Fund Tokenization: The Third Revolution in Asset Management

BCG believes that the asset management industry is entering its third revolution through fund tokenization, enabled by blockchain technology.Tokenizing funds allows for the creation of digital representations of traditional assets, making them more accessible, liquid, and efficient to trade.

Tokenized Money for Instant Transactions

After more than a decade working on blockchain initiatives, BCG has identified using tokenized money to instantly transact tokenized funds as one of its most promising and scalable applications. The game industry is on a new playing ground and the rules have changed. Double-digit growth is no longer a given, and bigger bets are bringing bigger risks. But opportunities for growth haven t disappeared they ve just changed, too. Game companies that think creatively, and act quickly, will find that success is a quest they can complete.This eliminates the need for traditional intermediaries, reducing transaction costs and settlement times.It also opens up new investment opportunities for a wider range of investors.

Gaming Industry: Adapting to a Changing Landscape

The gaming industry is facing a new reality, where double-digit growth is no longer guaranteed, and bigger bets bring bigger risks. BCG is developing a digital cryptocurrency exchange, which supports users to trade different coins and cash both legal and digital money. The exchange is a financial instrument based on theHowever, this also presents opportunities for companies that can think creatively and act quickly. sometimes extract monopoly rents, so a blockchain owned by everybody and by nobody is a means for exist-ing counterparties to update their transactions technology without ceding economic hegemony to a third party. A blockchain may serve as irrevocable proof that a counter-party made a claim or promise in the database, but it doesBCG's expertise in strategy and technology can help gaming companies navigate this changing landscape and find new avenues for growth.

Middle East: A Hotspot for Gaming Investment

The Middle East is emerging as a unique market for gaming, with governments in the GCC region investing heavily in the industry and implementing strategies to attract gaming companies.Saudi Arabia, in particular, has a National Gaming and Esports Strategy that aims to create a thriving gaming ecosystem.This presents a significant opportunity for gaming companies looking to expand their reach and tap into new markets.

MRO Blockchain Alliance: Revolutionizing Aircraft Parts Tracking

SITA launched the MRO Blockchain Alliance in 2025, bringing together industry stakeholders to set a global standard for the use of blockchain technology to record and track aircraft parts.This alliance aims to improve transparency, efficiency, and security in the aircraft maintenance, repair, and overhaul (MRO) industry.

Ensuring Data Integrity and Traceability

By using blockchain, the MRO Blockchain Alliance seeks to create an immutable record of aircraft parts, including repair data, which is notoriously difficult to aggregate and operationalize.This will help to reduce fraud, improve safety, and streamline the MRO process.

Conclusion: BCG's Vision for a Blockchain-Powered Future

BCG's multifaceted approach to blockchain technology, from digital currency exchanges and gaming innovations to supply chain management and healthcare solutions, demonstrates the transformative potential of this technology across various industries.While challenges remain, BCG's strategic insights and technological expertise are helping organizations navigate the complexities of the blockchain landscape and unlock its immense value.By fostering transparency, efficiency, and innovation, BCG is playing a pivotal role in shaping a blockchain-powered future.The continued development and adoption of blockchain technology promises a more secure, transparent, and efficient world.

• Key Takeaway 1: Blockchain is more than just cryptocurrency; it's a versatile technology with applications across various industries.
• Key Takeaway 2: BCG is at the forefront of blockchain innovation, driving adoption and creating new solutions.
• Key Takeaway 3: Overcoming challenges like regulatory uncertainty and scalability is crucial for the continued growth of the blockchain market.