Five Trends of Blockchain in 2021
It’s clear that blockchain will revolutionize operations and processes in many industries and governments agencies if adopted, but its adoption requires time and efforts, in addition blockchain technology will stimulate people to acquire new skills, traditional business will have to completely reconsider their processes to harvest the maximum benefits from using this promising technology.
1. BLOCKCHAIN AS A SERVICE (BAAS) BY BIG TECH COMPANIES
One of the promising blockchain trends in 2020 is BaaS, short for Blockchain As A Service. It is a new blockchain trend that is currently integrated with several startups as well as enterprises. BaaS is a cloud-based service that enables users to develop their own digital products by working with blockchain. These digital products may be smart contracts, decentralized applications (Dapps), or even other services that can work without any setup requirements of the complete blockchain-based infrastructure.
Some of the companies developing a blockchain that provides BaaS service are Microsoft and Amazon, consequently shaping the future of blockchain applications.
2. FEDERATED BLOCKCHAIN MOVES TO THE CENTER STAGE
Blockchain networks can be classified as: Private, Public, Federated, or Hybrid. The term Federated Blockchain can be referred to as one of the best blockchain latest trends in the industry. It is merely an upgraded form of the basic blockchain model, which makes it more ideal for many specific use cases. In this type of blockchain, instead of one organization, multiple authorities can control the pre-selected nodes of the blockchain. Now, this selected group of various nodes will validate the block so that the transactions can be processed further. In 2020, there will be a rise in the usage of federated blockchain as it provides private blockchain networks, a more customizable outlook [1].
3. STABLECOINS WILL BE MORE VISIBLE
Using Bitcoin as an example of cryptocurrencies it's highly volatile in nature. To avoid that volatility stable coin came to the picture strongly with a stable value associate with each coin. As of now, stablecoins are in their initial phase and it is predicted that 2020 will be the year when blockchain stablecoins will achieve their all-time high.
One driving force for using stable coin is the introduction of Facebook’s cryptocurrency “Libra” in 2020 even with all the challenges facing this new cryptocurrency proposed by Facebook and the shrinking circle of partners in libra.org.
4. SOCIAL NETWORKING PROBLEMS MEET BLOCKCHAIN SOLUTION
There are around 2.77 Billion social media users around the globe in 2019.
The introduction of blockchain in social media will be able to solve the problems related to notorious scandals, privacy violations, data control, and content relevance. Therefore, the blockchain blend in the social media domain is another emerging technology trend in 2020.
With the implementation of blockchain, it can be ensured that all the social media published data remain untraceable and cannot be duplicated, even after its deletion. Moreover, users will get to store data more securely and maintain their ownership. Blockchain also ensures that the power of content relevance lies in the hands of those who created it, instead of the platform owners. This makes the user feel more secure as they can control what they want to see. One daunting task is to convince social media platforms to implemented it, this can be voluntarily or as a result of privacy laws similar to GDPR .
5. INTEROPERABILITY AND BLOCKCHAIN NETWORKS
Blockchain interoperability is the ability to share data and other information across multiple blockchain systems as well as networks. This function makes it simple for the public to see and access the data across different blockchain networks. For example, you can send your data from one Ethereum blockchain to another specific blockchain network. Interoperability is a challenge but the benefits are vast.
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