The blockchain market has advanced very quickly and very abruptly in the past couple of years. Despite the COVID-19 pandemic last year, blockchain was one of the few industries that continued to grow. And I’m not talking only about cryptocurrencies, but blockchain altogether. We are seeing a new surge in the number of people and organisations that are building on the blockchain because they know in their hearts that blockchain is more or less the future.
So, when we talk about the technology trends in the ongoing year, we simply cannot miss the significance of the blockchain. In fact, most of the trends in the technology market, in my opinion, will be driven by blockchain.
Let’s take a look at some of the biggest & most unexpected blockchain trends you should be ready to witness in 2021 and beyond.
Blockchain will continue to grow and so will its market size
During the last year and before that, the blockchain grew both in popularity and market size at a rapid pace. Not just investors but businesses from a variety of niches as well as individuals around the globe are showing a growing interest in blockchain adoption and expect it to revolutionize their lives and businesses.
With the COVID-19 pandemic continuing to drive digital transformation, expect the blockchain size to continue to grow significantly in the years to come.
Expect a boost in the digital transformation of corporates
Due to the pandemic and with the user interests shifting dramatically, businesses no longer have the option to not go digital. In fact, digital transformation is something every business, irrespective of the industry or sector, is considering as a way to make processes convenient for their customers. Blockchain technology is expected to take the biggest chunk out of this digital growth of corporations.
The number & strength of global blockchain projects will increase
With blockchain technology becoming more popular every day, it is only apparent that there will be a major boost in both the number and strength of blockchain projects this year. In fact, as many as 30% of all blockchain project ideas are expected to start developing in 2021. So, if you are a blockchain developer or investor, expect the year to be amazing yet busy for you.
Private or permissioned blockchains will likely dominate the market
Another technology trend that you can expect this year is a notable increase in the market share of private blockchains. Unlike public blockchains, private blockchains give more privacy to particular businesses and the ability to develop customised solutions to fit their needs.
With more corporations looking to adopt blockchain into their systems, it’s only natural to expect the evolution of the private blockchain market.
Increased adoption of fintech and blockchain
Whether because of the COVID-19 pandemic or for other reasons such as added convenience & security, financial institutions like banks are compelled to go digital. Most banks and financial service providers are expected to adopt advanced digital technologies as a way to make processes streamlined, affordable & more secure. And with the blockchain being the major FinTech solution in the market, it’s expected to get the most benefit out of this trend.
DeFi & DLT
With consumers preferring digital financial services over traditional ones, be ready to see more non-traditional (digital) financial players in the market, who will use DLTs like blockchain to offer efficient transactions and financial services to consumers. The trend, in fact, is already here with non-bank institutions like P2P lenders, crypto banks, etc. offering a range of DeFi (decentralized finance) services to customers in the industry.
Tighter government regulations for FinTech
As the blockchain and other DLTs grow in popularity and more and more of the traditional finance shifting to digital, the world governments have no option now but to look for proper methods to come up with definite regulations related to blockchain, cryptocurrencies and FinTech. Without regulations in place, the growing digitisation of the economy can go out of hands very fast, which the governments realise very well.
As the world is moving fast from traditional finance to digital finance, blockchain will likely play a significant role in this transition. With its trustless and transparent financial transaction system, blockchain can effectively be the solution to many of the financial world’s problems.
But, that can happen only when big institutions start adopting the technology more aggressively and governments around the world show a more flexible approach towards the regularization of finance technologies.
One thing is sure – you should be ready for the unexpected when it comes to FinTech.