Blockchain is said to be the most revolutionary innovation that can potentially disrupt every sector. Starting from the financial institutions to basic healthcare organizations blockchain can play a major role. The major benefits include the reduction in settlement time, transaction fees and improvement in liquidity. Gartner, one of the top research and advisory firm has listed blockchain in the top ten strategic technologies in the year 2020. Gartner says that the blockchain has the ability to remodel industries by enabling transparency, trust and facilitating exchange of values across the business.
Also experts predict that 2021 will be the year for entreprise blockchain and it will be a marked time for blockchain to climb out of the trough of disillusionment. Even though the climb will be slower, there may be a steady forward movement.
Compared to 2019 nearly 14% of the entreprise blockchain solutions moved to productions in 2020 which is a 5% increase from 2019. Blockchain projects are very likely to increase in 2021 as many key trends will push the market of permissioned blockchain to the next level. The blockchain techology in 2020 has contributed to the development of more grounded and mature blockchain implementations.
Globally Blockchain technology will grow exponentially
The popularity of Blockchain technology has exploded and increasingly many industries have showed interest to adopt blockchain technology to enhance their businesses. The digital transformation during COVID-19 is very notable especially via the use of blockchain or distributed technology. Because of this, the global blockchain market is expeceted to expand from USD3.0 billion (in the year 2020) to USD 39.7 billion (in the year 2025).
Effect of COVID-19 on Blockchain Technology
Its been predicted that there may be a reorientation of various blockchain projects. This is mainly because 90% of the blockchain are ignoring the key features such as smart contracts, decentralized consensus, tokenization. The practical approach to the new blockchain initiatives can majorly help the daily processes in businesses around the globe. There has also been an increasing amount of institutional participation in blockchain networks.
Acceleration of Digital transformation in Corporates
The businesses at present are now in a critical situation for their survival due to the strain that’s been put upon the businesses due to COVID-19 pandemic. The mere reason triggers the need for corporates to accelerate their digital transformation. Blockchain technology is going to make the most unexpected changes in the ways businesses function in the upcoming years.
Global acceleration of Blockchain projects to Production
Experts have predicted that many blockchain based projects will switch to production stage. This is mainly due to pandemic induced situation and new startup projects that may bring profits in a short span of time. Presently, more than 40% of the corporates has made sure to run atleast one blockchain. And majority of the project will run on private blockchain platforms.
Private Blockchain will Dominate
The Blockchains are now developed and customized based on the corporate business needs and the these blockchains provide more opportunities to the corporates in order to implement blockchain technology for business to business needs with more efficiency and increased security.
Defi and Blockchain Technology
DeFi is now the trending model and it has paves a way for the blockchain to be used in financial services. This type of use case was the main limitation in enterprise blockchain. Defi mainly involves the successful implemention of smart contracts for the financial services.
Currently, there has been an hype about Defi services in various sectors and the initial growth of DeFi even surpassed USD 10 million. It will also speed up during 2021. Also the CeDeFi will come into effect will more financial institutions adopting it, thus bringing together the best of centralized and decentralized systems.
Zero Knowledge Proof with Blockchain
Another important trend that may be seen in 2021 is the launch of zero knowledge proof that are needed to meet the challenges and requirements of preserving the “confidentiality” that holds back various blockchain projects.
The ZKPs allows the companies with various record keeping systems to be in sync on record to record basis without sharing sensitive information. ZKPs has made more progression. Since it provides more security, the corporates are trying to develop more ZApps than DApps.
Central Bank Digital currency Projects
Many central banks around the world will explore and launch their own digital currency. This may get intensified in 2021 that’s mainly because of limited use of cash, digitized economy and use of private currencies like libra.
Banking and Financial sector will dominate the market
When we look into the COVID-19 impacted industries, the financial sector is amongst those. It has faced a tremendous growth in the past years and the present situation has forced them to adapt and meet their client demands with growing digital world. The adoption of Blockchain in Fintech will ease their processes. As a result it may produce contactless transaction.
The Blockchain Technology is growing rapidly and these predicted trend will influence the entreprise blockchain in many ways. There may also be upcoming trends that may intensify the changes in blockchain domain. However, blockchain will transform many industries in various ways. Don’t miss out the opportunity to begin your crypto startup.