Top Blockchain Trends in 2021
In recent years, Blockchain has made a remarkable entry and has shaken the economic sector on a global scale. The current worldwide spending on blockchain is 6.6billion USD. Though compared to other technologies, the adoption of blockchain is considerably low; this mechanism is still widely prominent and legally accepted. It is not very certain if the blockchain mechanism will last longer and create a promising future. However, its potential displays mixed predictions about the same. According to the statistics, in the year 2020, 24% of the companies are expected to invest in blockchain and financial bodies have spent around $552 million in blockchain-powered projects; Tech-savvy executives have also believed blockchain technology to display enormous potential in the growth of businesses. Not just that, but the financial industry in itself owns 60% of blockchain’s worldwide value. The facts that speak about the value of blockchain do not seem to have an end. Altogether, the adoption of blockchain seeks time and effort despite its capacity to transform operations and processes of distinct sectors and agencies. Mostly because it comes with a lot of challenges especially for the traditional businesses to adapt to this whole new mode of transformation that it seeks; but if implied it could create some rewarding experiences.
What is blockchain technology?
Blockchain technology is the home to Bitcoin and other cryptocurrencies. With the help of this technology, each transaction could be recorded anonymously in a digital distributed ledger that is not viable to kind of human alteration of information as the information is stored in blocks forming an interconnecting network secured with a hash. It is on the road to transforming global commerce, supply chain, transformation, law, politics, and more. It is indeed harvesting promising benefits and is capable of creating a revolutionary impact on millions of people. The data in blockchain technology is public and can be viewed by anyone thus boosting the transparency in its nature. Blockchain in India has grown to become a latent transformative force since 2016. For a crypto enthusiast, a Blockchain Development Company could help yield rewarding benefits.
With 2021 coming to an end, we can now come to a conclusion on some prominent impacts blockchain has made.
Let us in this article, view in detail some burning blockchain trends from 2021 as we also source some of its breathtaking potential in diverse fields.
Trends that dominate the blockchain industry in 2021:
Blockchain as a service(BaaS): Blockchain is a cloud-based infrastructure and management system. Many startups and companies have started using BaaS for operating and building Blockchain applications. Blockchain as a service works in the same fashion as software as a service and keeps the infrastructure working. It has become one of the promising trends in 2020 and decentralized applications work without the need of any setup requirements because these digital products are made of smart contracts. BaaS supports activities such as bandwidth management, suitable assignment of resources, hosting requirements, and data security. Some companies that produce excellent BaaS services are Microsoft and Amazon.
Stablecoins will gain more popularity: Cryptocurrencies are starting to make an exciting entry into the mainstream. Cryptocurrency is taking stablecoins to provide virtuous infrastructure for payments, banking, and credit cards. Cryptocurrencies like Bitcoin and Ethereum bring more value to the cryptocurrency. Even the federal banks have started to exhibit extra interest in issuing digital dollars. This is an unavoidable trend that will pave the way to legitimize cryptocurrencies. It is going to be no surprise if cryptocurrencies end up replacing the traditional monetary systems as it is already happening to some extent according to some trusted expert researchers.
Blockchain with Artificial intelligence: With the integration of AI and blockchain technology, it will create a better development environment for both parties. This will allow businesses to benefit from the increased amount of applications that will be made using AI. Even though AI can't replace humans, it can still improve the efficiency of blockchains by handling many basic tasks that humans can still complete efficiently. An example of this is data protection, which is a basic requirement for blockchains. By exposing machine learning algorithms and AI to the vast amounts of data flowing through blockchain networks, companies will be able to identify patterns that they may not have previously identified. There are plenty of examples of how AI and blockchain can work together to solve real-world problems. For example, Bext360, a supply chain digitization company, is using AI to predict the future growth of crops and improve efficiency in industries such as timber and minerals.
Blockchain integrated with IoT: The complexity of the Internet of Things (IoT) technology will become a major concern as security issues crop up. Over 26 billion devices have already breached the threshold. Due to the nature of the current network architecture of IoT, it is vulnerable to exploitation. With the emergence of blockchain, there are many advantages that make it a safer alternative to the centralized approach. The first being it is public i.e everyone participating can view the records thus ensuring adequate transparency. Second, it involves no central authority. And lastly, it is secure and the database can only be extended not manipulated. According to the International Data Corporation(IDC), 20% of the IoT distribution will enable blockchain services by 2021.
Transformation in economical and financial services: Unlike other industries, banks and finance firms don't have to introduce major changes to their processes to implement blockchain technology. After successfully implementing it, many financial institutions are already planning on adopting it in their operations by 2021. According to a survey, 77% of the banks are expected to adopt this technology by 2021. Blockchain services support the financial sector by reducing costs, conducting faster transactions, and reducing administrative burden. The banks can also decide to challenge the existing cryptocurrencies and gain more control over their monetary policy by introducing more cryptocurrencies to the system.
Supply chain transparency: Modern supply chains are complex, and often have silos, making it difficult to see what's happening in real-time. Blockchain networks, on the other hand, provide a level of visibility into the data that's being used to make decisions. QR codes are QR codes that contain information about the products that you buy. By doing so, you'll be able to see exactly how they got there and what they're made from.
Private blockchains will rule: Private blockchains are expected to become the main driver of the blockchain market growth in 2021. Due to their various advantages, such as lower cost, better security, and reliability, they are more preferred by large corporations. Hybrid Blockchain networks can be divided into three categories: Private, public, and Federated. This type of blockchain is an upgraded version of the basic blockchain network model. Instead of having one central authority, multiple users can have the pre-defined nodes of the blockchain.
Demand for blockchain tech-savvy’s in the market will increase: Only a few individuals are skilled in blockchain technology. Due to the rapid growth of this field, the demand for experts will increase significantly by 2021. Colleges and universities are thus pushing students to explore this field of opportunity and grab them as it is highly rewarding and not so competitive. Companies are also training their existing employees to develop better blockchain networks.
Although blockchain technology still hasn’t managed to attract most of the audience. But its growing trends seem to be setting up loud expectations for the same. There are no definite rules when it comes to implementing blockchain technology. However, developers and organizations must start understanding the various advantages and disadvantages of the technology. Security considerations are also taken into account when it comes to the integrity of the data stored on the blockchain. Immutability refers to the ability to keep all of the details of the ledger maintained by a computer system unchanged. Blockchain has great potential for the financial services industry. For instance, decentralized databases and public registrations could allow us to transact without having to spend multiple days creating a log-in structure.