How The Blockchain Technology Landscape Will Change In 2021
In 2020, numerous events happened that generated many new business and technology trends. Bitcoin is still on top in 2021, receiving massive attention from investors. So, are you wondering how the blockchain landscape will look like in 2021 and the upcoming years? This article will provide you information about the blockchain trends in 2021.
The global blockchain market will expand.
Blockchain technology is expected to explode in popularity in 2021. Businesses across various industries have paid close attention to adopting this technology to improve their business process; we’re not solely talking about cryptocurrency.
The pandemic has sped the digital transformation up in different ways, mainly through blockchain technology and distributed ledger technology. Hence, the global blockchain market is expected to expand intensively in size, growing from $3.0 billion to $39.7 billion by 2025. We strongly recommend you to consider investing in it.
The pandemic has been and will be continually speeding up the blockchain transition.
There will be a lot of blockchain projects’ redirection. Gartner predicts that 90 percent of current enterprise blockchain platform implementations will require replacement in 2021. This results from many CIOs have overestimated the capabilities and short-term benefits of blockchain to help them achieve their business goal, therefore, creating unrealistic expectations. Moreover, the COVID-19 pandemic has led to an increased need for more practical and pragmatic approaches that focus on daily business operations to continue expanding its path when it comes to blockchain projects.
However, we can’t deny the obvious benefits that blockchain technology brings to the table. Thus, there has been and will be an increased number of businesses joining the blockchain sector with the aim to solve specific supply chain problems caused by the pandemic.
Private blockchains will dominate
Another trend expected to happen is private blockchain, which is a permission blockchain. Private blockchains work based on access controls that restrict the people who can participate in the network.
This technology will become the main factor driving the blockchain market’s growth and is believed to maintain the largest market size by the end of this year. Enterprise blockchain solutions are tailored to business needs. Private blockchain provides companies with more opportunities to use blockchain technology for B2B use cases. They offer higher efficiency, privacy, reliability, and transparency. Simultaneously, the use of private keys includes security for private blockchain, which is being widely utilized; only authorized persons in the organization can get accessed and use it.
There is no doubt how blockchain technology has changed many industries dramatically, from finance and healthcare to higher education, media, and entertainment.
The banking and financial sector will dominate the market.
All industries affected by the coronavirus, but the financial industry in general and the banking sector, in particular, have been hit particularly hard.
In the rapidly evolving digital world, profit margins’ decline and shrinkage force banks to adapt and increasingly respond to customer needs. The use of financial technology and blockchain technology enables them to simplify and modernize operations. This may lead to a more stable development of contactless transactions and redesigned financial services. It is expected that the banking and financial industry will adopt blockchain technology in the next few years. As a result, the financial sector will occupy the most extensive market scale in the global blockchain market.
Crypto fraud is rising.
Although 2020 was considered a bumper year for cryptocurrency investment, the downside is the rise in cryptocurrency fraud. Global cryptocurrency exchanges have been subjected to high-profile attacks, whereas hacking attacks on decentralized finance companies accounted for more than 20 percent of the total fraud occasions in 2020. This situation is forecasted to continue in 2021. We could see more types of online fraud, including fake cryptocurrency investment platforms, fake wallet scams, new types of malware, and hijacking aiming at lesser-known cryptocurrencies.
The governments will tighten regulations related to fintech.
Another trend expected to emerge in 2021 and beyond is that the government will pursue stricter and tighter regulations. It has been a while since governments worldwide last implement financial technology regulations; now, we expect to see a myriad of financial technology laws in the next few years. The increase in the digitalization of the economy caused by the COVID-19 pandemic has attracted a lot of attention and will soon to be overseen by global regulators. In the upcoming years, digital banking, cryptocurrency, and blockchain could become the topics of interest.As more and more financial transactions occur outside of traditional institutions and mechanisms, regulatory agencies cannot ignore decentralized finance (often known as DEFI) issues. Simultaneously, European Union legislators are implementing an EU-wide regulatory system for the crypto asset market, including an increase in token investment as a complex investment tool.