2019 was one of the best years for blockchain and crypto space. The followers of the technology that supports bitcoin, the largest and most popular cryptocurrency so far, was able to witness the birth of new alliances, products related to virtual assets, as well as protocols that extended the growth of this network to other areas of the financial sector.
It was in this year when the United States Congress and foreign central banks became interested in the benefits of blockchain and cryptocurrencies. Even China decided to bet on this technology for billions of dollars.
Also, the world’s largest financial companies are building on the blockchain and the trend shows no signs of slowing down. Therefore, analysts and experts have said that 2020 will be a much more interesting year for the blockchain and here are some projections.
Central Bank of China will launch its cryptocurrency
China is one of the most active countries in blockchain technology, as well as in crypto space because that is where the largest cryptocurrency exchanges have been registered and also where mining is mostly carried out.
China International Economic Exchange Center Executive VP Huang Qifan has announced that the People’s Bank of China is launching a digital currency known as Electronic Payment in Digital Currency (DCEP).
Facebook Pound Launch
Facebook announced its plans to launch the digital currency in June 2020, but the attempt to popularize the cryptocurrency was obstructed by the skepticism of politicians and regulatory agencies worldwide.
The projection is that Libra will be launched next year in a jurisdiction and with limited scope, partners and functionality.
Stable coin paradises
The trend that has been observed in recent years of converting fiat, or fiat money; that is, assets that governments recognize as legal, in cryptocurrencies to operate exchanges in the virtual market will continue.
Therefore, we will see greater adoption of stable currencies, mostly backed by trust funds, and driven by stock market trading.
It is clear that blockchain adoption, despite the challenges it poses in terms of time and effort, will mean a real revolution in a multitude of operations and processes in a wide range of sectors, to trigger the demand for certain profiles and capabilities, and to force traditional companies to completely rethink their processes to take full advantage of the advantages offered by this promising technology.
Next, we analyze 10 trends that will dominate blockchain technology in 2020.
BLOCKCHAIN AS A SERVICE (BAAS) & THE TECH GIANTS
The call, Blockchain as a Service or BaaS, will be one of the trends with the greatest projection 2020, especially for the interest that has aroused among various startups and, above all, large consolidated companies. BaaS is a cloud-based service that allows users to develop their digital products working with blockchain. These digital products can be smart contracts, decentralized applications (Dapps), or even services that do not require a blockchain-based infrastructure to function.
Leading technology companies such as Microsoft & Amazon are making significant strides in the development of blockchain technology. By offering Blockchain-as-a-Service (BaaS), they pave the way for a new era of secure & decentralized applications. As blockchain continues to revolutionize industries, these companies are at the forefront of shaping the future of this transformative technology.
THE FEDERATED BLOCKCHAIN RISES TO THE FORE
As Blockchain networks continue to evolve, the concept of federated Blockchain is emerging as a promising trend. Unlike traditional blockchain models that rely on a single entity to manage nodes, federated blockchain networks enable multiple authorities to oversee each preselected node.
This distributed governance model boosts security and increases efficiency by preventing single points of failure.
With the customization possibilities that federation enables, 2020 is expected to see a significant increase in the adoption of federated blockchain platforms across various industries. Federated Blockchain enables businesses to enjoy the benefits of blockchain solutions while remaining compliant with regulations & internal controls.
Federated Blockchain is particularly well-suited for applications in supply chain management, industrial processes & other complex systems that require high levels of scalability and interoperability. Moreover, the added layer of security introduced by multi-level governance structures positions it as a powerful tool in the fight against cybercrime.
INCREASED VISIBILITY OF STABLECOINS, OR STABLE CURRENCIES
Stablecoins, also known as stable currencies, have been gaining increased visibility among investors due to their ability to overcome the volatility issues associated with cryptocurrencies like Bitcoin. The emergence of stablecoins is based on the necessity to guarantee stability in the value of a currency. Despite still being in their early phase, stablecoins are expected to reach their historical highs by the end of 2020.
The launch of Facebook’s Libra cryptocurrency in 2020 is a significant milestone towards greater adoption of stablecoins, despite the turbulence & management organization of this currency. The potential of stablecoins to transform the financial landscape remains intriguing & the adoption trend is expected to continue to grow.
BLOCKCHAIN SOLUTIONS TO TACKLE SOCIAL MEDIA PROBLEMS
The booming trend of social media in 2019 welcomed 2,770 million users, which comes with its own set of problems. In the current age of information, privacy, data control, & the relevance of content have been subjects of controversy. Luckily, blockchain technology might have the answer that social networks have been looking for.
By introducing blockchain technology into social networks, many issues will be curbed. Firstly, the implementation of blockchain ensures that all data published on social networks is non-traceable & prevents any duplication. Secondly, blockchain technology will allow users to store data more securely while also guaranteeing ownership.
What’s even more impressive is that blockchain technology allows content creators to have authority over their content, rather than the owners of the platform. This means that your preferences will have more control over what you want to see.
The incorporation of blockchain technology will not only benefit users but the overall security of social networks in general. It’s just a matter of time until the increase in blockchain-based social networks becomes mainstream.
INTEROPERABILITY AND BLOCKCHAIN NETWORKS
Interoperability is an essential feature for blockchain networks’ success, as it allows different systems and networks to share vital data and information. By using interoperability, users can access & visualize the same data from various blockchain networks. For instance, a user can send data from an Ethereum blockchain to another blockchain network with ease. Developing this interoperability functionality is a challenging task, but the benefits it provides are enormous. To create blockchain systems that meet your unique business needs, it’s vital to hire blockchain app developers who have the technical expertise & experience in this field.
FINANCE & ECONOMY WILL DRIVE BLOCKCHAIN APP DEVELOPMENT
Contrary to what happens in other traditional businesses, in the banking and financial sectors the adoption of blockchain technology does not require major changes in terms of processes. After its successful application in the development of the cryptocurrency segment, numerous financial institutions have begun to seriously consider the possibility of implementing blockchain to improve their traditional operations.
According to a PWC report, 77% of financial institutions plan to adopt blockchain technology as part of some system or process in production throughout 2020.
The emergence of blockchain technology has brought drastic changes to the traditional banking system. With its advanced features, banks can now streamline bureaucratic processes, expedite transactions at low costs & enhance their privacy levels. According to Gartner, the business value derived from blockchain-based cryptocurrencies in banking is estimated to reach $1 billion. In addition, blockchain can enable banks to launch new, regulated cryptocurrencies as a way to diminish the competitive edge of independent cryptocurrencies & to have better governance over monetary policies. This highlights the significant potential & foresight that blockchain technology can offer to the banking industry.
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INTEGRATION OF BLOCKCHAIN IN GOVERNMENT AGENCIES
The integration of blockchain technologies in government agencies has become an alluring idea for the authorities to manage large amounts of data effectively. The current database systems in each agency result in constant information requests from civilians. However, using blockchain technology can help in data management processes & boost agency productivity by improving data efficiency.
Not only does this increase operational efficiency, but also addresses data protection concerns by having a tamper-proof and decentralized system. The adoption of blockchain technology in government agencies is a promising step towards a streamlined & transparent governance system.
According to Gartner, more than 1 billion people will have some type of personal data stored on some platform or blockchain system, whether or not they are aware of them. Also, as governments have no choice but to recognize the advantages offered by blockchain-based currencies, national cryptocurrencies will begin to appear, digital money is the future and nothing can stop it.
IoT AND BLOCKCHAIN SHAKE HANDS
The rapid growth of the Internet of Things (IoT) market has paved the way for new threats that have raised concerns regarding the security of this interconnected network. With over 26 billion IoT devices already connected to the internet, unauthorized access to IoT devices and networks is predicted to increase in frequency in the coming years. This has rightfully raised concerns among network operators who must now prioritize security measures to prevent intrusion.
One of the main causes of IoT network vulnerability lies within the current centralized architecture. The sheer number of connected devices, with millions more on the horizon, makes the IoT a prime target for cybercriminals. As a result, the blockchain offers a promising solution to IoT security. Being a public technology, blockchain offers enhanced transparency and validation of all the blocks and transactions stored in it.
It’s not surprising then that the IoT app development company are looking to integrate blockchain with IoT applications for enhanced security. By leveraging blockchain’s security features, like its decentralization, encryption & immutability, it’s hoped that IoT security can be bolstered & future-proofed for the inevitable advances in technology.
Also, it allows users to control their transactions using keys. Second, the blockchain network is decentralized, so there is no single authority that can approve transactions by eliminating the weakness of the Single Point of Failure (SPOF, or single point of failure). Third, perhaps the most important aspect: it is a secure technology – the database can only be expanded, previous records cannot be changed.
Many companies that work in IoT adopt blockchain technology for their business solutions. The International Data Corporation (IDC) estimates that 20% of IoT implementations are accompanied by some type of blockchain service.
BLOCKCHAIN WITH AI
The convergence of AI & blockchain technology forms the way for unprecedented advancements. With this integration, efficiency & security measures will be achieved, resulting in a plethora of applications that help diverse industries. This synergy will herald a new era in tech innovation.
According to the International Data Corporation (IDC), global spending on AI will reach 57.6 billion dollars by 2020 and 51% of companies will embark on the transition to AI with blockchain integration.
The intersection of blockchain & artificial intelligence (AI) is seeing exciting advancements, with each technology complementing & strengthening the other. Blockchain’s ability to record & store data in a secure, transparent manner can help increase the transparency & accountability of AI decision-making processes. Through recording all the data and variables that influence the decisions made by machine learning algorithms, blockchain offers total traceability on these processes & enables stakeholders to better understand how AI arrives at its results. On the other hand, AI applications in Blockchain can improve the efficiency of blockchain processes by integrating intelligent computing & creating diverse databases. The monetization of data is another area where AI & blockchain can work together, helping individuals & organizations to benefit from the value of their personal or business data. Furthermore, AI’s capacity to make ideal decisions can boost confidence in AI-powered decision-making systems, adding another layer of security to the immutability of blockchain. The possibilities for these two technologies will continue to expand as they further develop & intersect, offering fascinating & innovative solutions.
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