How will the future of blockchain technology look like in the upcoming years? Here is a list of trends you might want to watch out for!
To remain competitive, organizations are increasing their efforts in transforming the businesses digitally. Amid the COVID-19 situation, most of the businesses developed new offerings based on emerging technologies such as Artificial Intelligence, Blockchain technology, and the Internet of Things (IoT) in the year 2020.
Though blockchain technology started as the medium for transactions with cryptocurrencies, it branched out further and found utility in several areas. The main use cases include payment settlements, smart contracts, supply chains, identity management, data management, and healthcare. The use cases of blockchain technology were vast in the current year (especially in the financial sector) and will continue so in the year 2021 too.
Let’s understand the blockchain’s progressive space in innovation and promising aspects for the year 2021 and beyond.
In 2021 and beyond, innovators will take forward the blockchain trends of 2020 and use them to its fullest. Take a look.
Decentralized Finance (DeFi)
The Digital Currency Electronic Payment (DCEP) initiative by the People’s Bank of China put Crypto and blockchain back on the radar. DeFi became the center of attention this year and will continue to be so in the upcoming year also. DeFi has endless possibilities in Yield farming, stable coins, non-fungible tokens, and gamification.
Most of the businesses will start avoiding traditional transactions in the next year. To mention a few:
Social and political use
People across the globe prefer blockchain as it is easy to use and trace fraudulent tasks. Businesses will have upgraded versions in 2021. Be it for a social or political cause, blockchain leaders want to implement blockchain across sectors such as theft identity, data management, digital rights management, supply management, and many more. Online casinos are already accepting cryptos. The modern way of payment for things lies ahead in 2021. It is crucial to prepare yourself by staying on-trend and updated on new changes when you invest some fatty money.
Sifting through Fake news and deepfakes
The advancement in technology is breathtaking, aspiring, and sometimes eerie too. The technological advancements have made lives comfortable and at the same time have put the fate of credible journalism in question. As blockchain has a great potential in identifying false news and deepfakes, it might get the source for this kind of misinformation and people can get better access to credible news.
Blockchain will continue powering businesses. As it can store and secure confidential data, it will help in scaling and expanding businesses. Also, because of faster transactions, transparency, the absence of intermediaries, and the tracing of fraudulent activities, blockchain will dominate the industries in the years to come.
To continue, James Wester, Research director, discusses that the strong drivers such as imperative of connectivity, crisis, resilient business, and operating models, societal and economic changes will lead to following developments in the near future. Here is the essence of worldwide predictions for 2021.
Figure 1: Worldwide Blockchain Predictions. Source IDC, 2020
We have discussed some of the important trends one can watch out for in the coming decade. From making a food supply chain safer and smarter to transforming legacy processes, blockchain leaders are leading the business world into a new era.
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