Emerging Patterns and Horizons of Blockchain Technology
"Chain it up, 'cause innovation's the youngest, but it's running the oldest game"
Blockchain - This cutting-edge technology, according to the research giant Gartner, is predicted to hit the mainstream in the following years, potentially by 2024. With its transformative potential, the tech is poised to revolutionize numerous industries.
From finance, cybersecurity, and healthcare to intellectual property, the blockchain promises significant changes and numerous opportunities across various sectors. It's forecasted that the global market size of the technology will significantly increase in several key locations.
It's time to take a closer look at the blockchain trends for 2021 and beyond. Before diving in, let's briefly brush up on the basics of blockchain and what it does. Our blog provides a comprehensive overview, filling in any gaps in your understanding.
Top Blockchain Market Statistics
- The market capitalization of Bitcoin reached approximately $72.37 billion in Q1 last year.
- Financial institutions and banks that implement blockchain technology may potentially slash their infrastructure costs by up to 30%.
- An estimated 9 out of 10 people engage in Bitcoin transactions. It's important to note that Bitcoin cryptocurrency operates on blockchain technology.
- Over 20 countries are researching the development of national cryptocurrencies.
- In 2018, nearly 9 banks in Europe and America were exploring blockchain technology trends.
- By 2025, it's predicted that half of global healthcare administration will embrace blockchain technology for its business operations.
Now, let's dive deeper into the blockchain technology trends for 2021 and beyond.
Top Blockchain Technology Trends 2021 & Beyond
Blockchain as a Service (BaaS)
One of the first blockchain technology trends for 2021 is Blockchain as a Service (BaaS). By providing a cloud-based solution, BaaS offers users the ability to create digital products featuring blockchain technology. These products could include decentralized applications (often known as Dapps), Smart Contracts, or other services that require a blockchain infrastructure.
Organizations like Amazon and Microsoft are prominent players in the market, strengthening the technology's potential.
Federated Blockchain
The blockchain network can broadly be categorized into three types: public, private, and federated or hybrid. Among these, the federated blockchain is seen as the latest trend in the industry and the enhanced version of the blockchain model. Federated blockchain can be utilized by multiple authorities and allows for the selection of pre-approved nodes within the blockchain network to validate and process transactions.
By year's end, it's expected to see a surge in the adoption of federated blockchain networks with a customizable outlook.
Stablecoins
Perhaps one of the most exciting trends in 2021 is the development of Stablecoins. With unstable values associated with traditional cryptocurrencies, the creation of Stablecoins seeks to level the value of each coin, with their worth predicted to be more apparent by the end of the year.
The introduction of Facebook's cryptocurrency, Libra, has played a significant role in driving the Stablecoin trend.
Social Networking Problems
With over 2.77 billion social media users worldwide, the integration of blockchain technology in social media platforms can combat issues like scandals, forgery, privacy breaches, content relevancy, data control, and more. This means that social media data can neither be copied nor traced even after deletion, offering users secure data storage and retaining ownership. However, convincing social media platform owners to adopt the technology may present a challenge.
Interoperability and Blockchain Networks
The future of blockchain technology trends will center around interoperability, allowing seamless communication between different blockchain systems and networks. Enhanced interoperability makes it easier for users to access and view data across multiple blockchain networks without unnecessary complications. Although there may be initial challenges associating with sending data from one Ethereum blockchain to another, the long-term benefits far outweigh these challenges.
Economy and Finance-Based Applications
Financial institutions and banks don't have to completely overhaul their existing processes to integrate blockchain technology. In fact, many institutions are considering using blockchain technology for traditional banking functions, ultimately reducing bureaucracy and enabling faster transactions at a lower cost with increased security. By the end of 2021, it's predicted that at least 77% of financial institutions will have adopted blockchain technology as part of their in-production system.
Blockchain technology could additionally be utilized to launch new cryptocurrencies that can be influenced or regulated by monetary policy.
Privacy and ID Verification Solutions
As governments worldwide grapple with issues like identity theft and concealed criminal activities, blockchain technology offers a promising solution. Blockchain solutions could enable quick and secure verification of personal identities by leveraging distributed ledger technology and improving the efficiency of government services like voting and immigration management.
Internet of Things (IoT) and Blockchain
The integration of blockchain technology and IoT can provide significant security benefits for IoT networks by preventing intruders from interpreting the core operations. Blockchain technology's distributed nature eliminates the need for a central authority, making it an effective deterrent against Single Point of Failure weaknesses and cybersecurity threats.
Ricardian Contracts
Ricardian contracts are a newer addition to the blockchain technology trends for 2021, representing legally binding and human-readable agreements between parties. These contracts can be converted into machine-readable contracts, outlining the intentions of the parties involved.
Hybrid Blockchains
Hybrid blockchains are another upcoming trend in the blockchain space. These blockchains offer the best of both private and public blockchain solutions, providing advantages such as lower transaction costs, increased security, flexible governance, confidential practices, and operating within a closed ecosystem.
Stay tuned for even more trends in blockchain technology as the technology continues to advance and gain wider acceptance within the mainstream. Connect with our team of experienced blockchain experts to understand how blockchain technology can provide solutions tailored to your specific needs and lead the way in innovation.
- In the realm of mobile app development, exploring blockchain technology for solutions could lead to innovative decentralized applications (Dapps) with enhanced security features through the integration of Blockchain as a Service (BaaS).
- As finance continues to adapt to technological advancements, the integration of machine learning and blockchain technology can potentially streamline financial institutions' operations, reducing costs while maintaining security for transactions.
