Top 5 Emerging Blockchain Trends That Will Be Dominant In 2020
With Blockchain adoption gaining significant momentum across industries, 2019 has been an eventful year for those actively invested in the technology. The year saw noteworthy diversification of Blockchain initiatives with application in industries other than fintech, such as healthcare, technology, government, media, telecommunications, etc.
Market surveys revealed reports of positive investments leading to a substantial growth of the global Blockchain industry. What was recorded as USD 1590.9 million in 2018 is now expected to grow at a rate of 69.4 percent from 2019 to 2015. In a report published by IDC (International Data Corp), it was predicted that investment in Blockchain solutions will touch USD 11.7 billion by 2022, representing a 5-year CAGR of 73.2 percent.
Top 5 Emerging Trends in the Blockchain Domain
With 2019 nearing conclusion, Blockchain enthusiasts are buckling up for a more productive and fulfilling 2019. Here are a few trends that are expected to dominate the DLT scene in 2020.
- Use of Federated Blockchain: It is the latest trend in the global Blockchain market which is more focused on specific industry use cases. It is an upgraded version of the basic model, which experts believe will be predominant in the coming days. Federated Blockchain has a more bespoke approach towards private Blockchain adding more advanced features. It allows multiple authorities to have control over the previously selected nodes, instead of keeping it under the control of one. The selected group validates the block to initiate transaction processing. Industries involving financial services, insurance claims, supply chain management, and the likes can benefit from the use of federated Blockchain.
- Hybrid Blockchain: Hybrid Blockchain is a combination of both public and private Blockchain. The system makes use of the most relevant aspects of them both. The main advantages of hybrid Blockchain include reduced transaction costs, advanced security from hack attempts, provision to modify the regulations and high levels of privacy protocols.
- The dominance of Stable Coins: Digital currency is what brought Blockchain technology to the limelight. It is the first successful use case of technology. However, considering the volatile nature of digital currencies stable coins were introduced as an alternative. It might be in its preliminary stages of development now, but experts are predicting that 2020 will be great for the stable coin’s ecosystem with some significant modifications.
Advantages of Stable Coins:
- Stable coins seldom fluctuate, preventing random currency crashes, allowing people to invest more in crypto.
- The use of stable coins facilitates fast and affordable remittances.
- It streamlines peer-to-peer payments, allowing users to use it on smart contracts for automated payments.
- With minimum crashes, stable coins can help in stabilizing the crypto market.
Disadvantages of Stable Coins:
- Being backed by another crypto, fiat or commodity, stable coins can lose stability due to sudden market crashes.
- The centralized aspect of stable coins raises trust issues among users
- It falls under the same regulations as fiat currencies, ultimately clashing with the prime character of crypto which is decentralization
4. Blockchain Interoperability: Interoperability among Blockchain networks will allow the sharing of data across multiple Blockchain networks. It is a work in progress that will make it easy for users to conduct transactions from one Blockchain to another. It also improves multi-token transactions via a multi-token wallet system. One of its more diverse functions involves cross-chain transactions as well.
5. Blockchain-based Social Networking: Blockchain technology can embolden social networking sites to counter the issues of privacy violations, data security, and control over data. The use of the distributed ledger technology can ensure that the content published remains authentic, without instances of duplication. The system will offer more security and privacy to the data. All these factors will make it in the priority list of developments in 2020.
Considering the long list of expected developments, 2020 seems like an exciting year for Blockchain developers. It takes forward the innovative technology into its next stage of evolution.
