Blockchain might not be something new for you! Yes, it had been that much of a buzzing term in the years passed. And why not? The world accepted it as a promising technology that could pave the way for a revolution. Of course, it did so, and its climb was impressive. Moreover, the pandemic situation that the world had to face in 2020, accelerated the trends that were underway, and generated many shaping the future of blockchain to reach the peak. Hence, as we bid farewell to 2020, and welcome 2021, we thought that it would be better to have a look at the future of blockchain. We know that you are excited too! Yet, if you are new to this whole concept, you might need an idea about blockchain before proceeding ahead. So, before moving on to the future of blockchain, let us help you clear out your doubts about blockchain through a quick glance at first. Here we go!
What is Blockchain?
In the simplest terms, blockchain is a decentralized, distributed ledger that records the provenance of a digital asset. In fact, this ledger is transparent, and provides full real-time access for any of the users, thus enhancing the trust and integrity of the asset.
Uses of Blockchain
Parallel to the digitized transformations of the world, many sectors that are advancing with technology adapted blockchain. Some of its most popular applications are as follows.
- Cryptocurrency exchange
- Cross-border transactions
- Voting Procedures
- Secure sharing of information
- Hi-tech advertising analysis
- IoT systems
- Governance procedures
- Supply chain and logistics platforms
However, these are just a few of the main applications of blockchain. Despite what the sector is, the world keeps embracing blockchain, and the applications are expanding. So, there is no doubt that many more applications will adapt to blockchain in the future as well.
However, with that, it is high time for us to draw your attention towards the future of blockchain!
Trends that will Shape the Future of Blockchain!
As we begin a new decade, the blockchain seems to be accelerating its journey. Yet, what can we expect for 2021? What will be the landscape look like for blockchain in the years that are to be dawned? Of course, we are sure that you are excited to know more about them. So, what are we waiting for? Let us begin our exploration of the future of blockchain. You can find below the top trends that we expect to shape its future!
- The global blockchain market will expand.
- Private blockchain will dominate the market.
- Blockchain middleware abstraction solutions will emerge.
- Blockchain will influence the governance and regulations of countries.
- Cryptocurrencies will be more stable.
Of course, you might be willing to know more about these trends and their impacts in shaping the future of blockchain. Keep calm, and continue reading! We are ready to share with you all about them.
1. The global blockchain market will expand.
The expansion of the global blockchain market was predicted for 2020 as well. Yet, owing to the unexpected digital attractions, the global blockchain market nearly exploded in popularity in 2020. So, how will it be for 2021? You might be wondering about it! Yes, let us highlight to you that the expectations for 2021 in terms of blockchain are indeed greater, especially due to the digital transformation that took place parallel to the pandemic situation.
At present, we have arrived at an era where no business could survive without interaction with technology. This made businesses worldwide enhance their processes adapting to the new normal. Owing to this factor, businesses of all scales showed a greater interest in adapting blockchain to process ahead with their business plans. The digital transformation drive that took place accordingly was indeed a step ahead, and the chances are extremely rare to keep a step back with regard. Thus, there is no doubt that the global blockchain market will exponentially grow.
Moreover, there is a prediction that the blockchain market size will expand from USD 3.0 billion to USD 39.7 billion in the course of 2020 to 2025. Therefore, we believe that expectations for the upcoming years in terms of the global blockchain market are positive, and it will mainly impact the future of blockchain to shape in a way better than ever.
2. Private blockchain will dominate the market.
Of course, we can keep a hope that the private blockchains will dominate the global blockchain market. It is true that the cooperates will be more interested in blockchain than before. Similarly, their concern on factors such as higher privacy, transparency, and reliability will also increase. Moreover, they would try to increase the efficiency of their processes. When considering all these urging requirements, it is clear that the next possible advancement for them would be the private blockchains.
Private blockchains will allow enterprises to develop more customized systems. It will create more opportunities for B2B use cases. Moreover, private blockchains will make corporations strengthen the security of their digitized processes with the help of the private keys that are known only to authorized persons in the organization. Accordingly, private blockchains will create space to address more realistic demands when digitizing business processes. Further, private blockchains will help the businesses continue in their growth path while satisfying the corporate’s business needs. Hence, there is a positive expectation that many businesses worldwide will embrace private blockchains. Thus, it is no doubt that private blockchains will retain the largest share in the global blockchain market in the next decade.
3. Blockchain middleware abstraction solutions will increase.
If you continued our read up to now, you clearly know that the demand for blockchain technology is expected to exponentially grow in the corporate sector. Yet, do you think that it is easy for a business to adapt blockchain technology at once? No, never! It is one of the tremendous tasks that requires days of planning.
At first, they should plan how to integrate their processes across blockchain platforms. Next, they have to choose the best blockchain platform that suits them the most. The corporates have to look for smart contract development environments. Next, they should think about the tools to develop decentralized applications. And why not? They should set data standards, and also communicate with other blockchain network participants in order to finalize their processes. After all, they should assure that efficiency, reliability, security, and the confidentiality of their processes are at a high level even after adapting blockchain technology. Likewise, it is a whole process that demands several critical decisions. Yet, can a corporation that adopts blockchain technology new take care of this process whole alone? Simply, it would be a highly challenging task for them.
And indeed, that is the instance where the blockchain middleware abstract solutions come on stage. Even at the present, there are few entities that provide this service. Nevertheless, it is crystal clear that the demand for middleware abstract solutions will drastically increase in this dawned decade. The middleware abstract solutions will assist the businesses with the backend technical complexity of blockchain. And indeed, that will surely be a great advantage and support for the businesses. Hence, there is no doubt that blockchain middleware abstraction solutions will increase in the future.
4. Blockchain will influence the governance and regulations of countries.
In simplest terms, blockchain is in the process of taking countries to another level. Blockchain is encouraging governments to rethink their governing strategies. It creates opportunities to make countries plan on how to refine their business strategies. Blockchain motivates the governing bodies to strengthen the legality of the processes that use blockchain. Likewise, the impact blockchain has on the governance and regulations of countries seems to be rising.
However, as of now, there is no secret that China is paving the way ahead in leading the global blockchain game. China is in the process of making blockchain an integral part of its governance. Its ‘new infrastructure’ initiative, and its state-backed blockchain-based service network, prove how well it utilizes blockchain for the betterment of the country. Going beyond, China is planning on providing a global public infrastructure via their network as well. Besides, there is no sign of competitors passing China in this game. And thus, the belief is that China will hold this leading position at least for a few years ahead.
Yet, it seems that many of the European countries are also entering the game. Moreover, several countries have taken steps to strengthen their regulations related to FinTech. And indeed, these factors simply prove to us that blockchain is influencing the governance and regulations of several countries. So, in the near future, more countries will adapt to these changes. Thus, they will play a major role in shaping the future of blockchain.
5. Cryptocurrencies will be more stable
As you might already know, blockchain is the backbone that ensures the existence of cryptocurrency. Thus, the future of either of them simply impacts both. However, 2020 was indeed a good year for cryptocurrencies. Yet, how would it be for 2021? Take it easy! Let’s find out.
As per the predictions of the crypto economy experts, 2021 is going to be even a better year for all the cryptos as a whole. Along with the pandemic situation that the world faced, uncertainty was ruling. Duly, the global economy faced a drastic downfall. This made investors look for more safe investments. In an environment as such, there seems to be more attracted towards cryptocurrencies. Yet, why did it happen so? Yes, you guessed it right! Even though the uncertainties are there, the crypto market has a very limited chance to get impacted by external parties. Simply, even the government policies do not have the power of influencing the crypto market, owing to its decentralized nature. Moreover, social distancing and cashless transactions emerged prominently with the pandemic. Owing to all these reasons, the crypto market is positioned high in the modern world.
Meanwhile, one can argue that no such predictions can be made because of the constant fluctuations that happen in the crypto market. Still, when considering the boom in the crypto market, and the direction of the modern world businesses, we highly believe that cryptocurrencies will be more stable in the future. As mentioned earlier, since blockchain happens to be the base concept behind cryptocurrencies, the stability of the crypto market surely impacts the way ahead of blockchain as well. Moreover, we believe that the improvements with blockchain in the future will indirectly benefit the journey of cryptocurrency as well. Thus, the bond between blockchain and cryptocurrency will benefit more in the future, and it would be more like a win-win situation for both.
The Bottom Line
In summary, let us highlight that the journey of blockchain is unstoppable. It would continue reshaping the modern world, creating financial, social, and economic disruptions of an era. Besides, blockchain is passing a phase of acceleration even in the present. Thus, the impacts it creates might be even greater than we ever imagine. Yet, it is clear beyond a doubt, that the trends we discussed will surely shape the future of blockchain in an impressive way. However, these are predicted trends that are most likely to happen. Nevertheless, we always have to expect the unexpected as well. So, let’s see what the future of the blockchain will be like!