Currently, blockchain technology and its use cases are the hot talks of the town. Because it revolutionizes operations in various ventures and government organizations. however, the adoption of this technology requires time and effort. Moreover, Blockchain Technology will inspire many startups and enterprises to obtain new abilities. Also, they can gain extreme perks from utilizing this promising technology.
However, the concept of blockchain will be a little bit confusing for many newbies who entered the blockchain industry. If you are new to this domain, then your first question will be: What is Blockchain?. Blockchain technology is a decentralized and distributed ledger that stores every one of the ledgers for financial transactions. This technology is deeply secure, anti-fraudulent, and trustworthy technology. Because the blocks are completely decentralized, permanent, and transparent.
Apart from this, blockchain securely delivers the data with zero transaction cost. Also, anonymous hacking is not possible in this promising technology. If you are a person looking for the latest blockchain market trends in 2020. Then this article is for you peeps!. In this article, Let’s have a look at the top 10 emerging blockchain trends in 2020, that will revolutionize the future of blockchain.
List of Best 10 Emerging Blockchain Trends in 2020
Here are the top blockchain trends in 2020 that everyone must know.
- Blockchain as a service by Enterprise Tech companies
It is one of the recent blockchain trends and it is completely implemented with the help of startups and entrepreneurs. Blockchain was initially invented as a way of decentralizing money and finance and putting it in the power of people. But in this current time, that trend seems to be reversing. Many blockchain technology and financial companies are developing powerful blockchain products for their clients.
The primary motto of a blockchain company is to deliver the perks of blockchain technology as a service. Amazon is one of the great examples of a large corporation offering blockchain tech as a service. Their blockchain platform helps to build scalable blockchain platforms using different frameworks. Such as Ethereum and Hyperledger. But this will work on a large scale or not is yet to be seen. One of the significant appeals of blockchain tech is, it eliminates the intervention of the government or any central organization. It’s clear that this blockchain trend will continue for many years.
- Adoption of Decentralized Finance (DeFi)
DeFi is one of the popular blockchain trends since 2019. Also, it is one of the fast-growing sectors in the blockchain space. DeFi refers to financial-based applications that are completely developed using blockchain networks. It is open finance that consists of all the digital assets, protocols, P2P applications, smart contracts, and more. DeFi creates a permissionless and transparent financial-based ecosystem. It can be completely operated without the help of any central authority.
DeFi offers open financial services across the globe. Such as insurance, loans, and trading. Also, it is completely enabled by the decentralized technologies and built on the ethereum blockchain. From lending and borrowing platforms to stablecoins development and tokenized digital assets. In recent times, over $7 billion worth of value locked in ethereum smart contracts. So DeFi emerged as the most energetic sector in the blockchain industry. This made decentralized finance a prominent blockchain trend in 2020.
- Stablecoins will be more visible
One of the biggest trends in the blockchain is stablecoin development. It is due to the popularity and beneficial factors of the stablecoin. Stablecoin is a kind of digital asset that is completely pegged with traditional currency. It combines the perks of cryptocurrency with the reliability and stability of fiat currency. So this type of digital currency is not impacted by the market conditions and has a stable price. Because it is mostly backed with fiat currency.
As of now, some prominent stablecoins are actively present in the market. Such as tether, binance USD, Paxos standard, and true USD. We can expect some growth in the upcoming years. As stablecoins are fresh in the marketplace, it can hit the biggest place in the blockchain industry. Also, many startups and entrepreneurs started approaching stablecoin development from the reputed development companies. There are four different types of stablecoins. Such as
These four types play a paramount role when it comes to stablecoin development.
- Rise of Dapps
Dapp is one of the recent trends in the blockchain industry. A Dapp is a decentralized application based on a blockchain network. Most of the decentralized applications are completely developed on the powerful Ethereum blockchain. So ethereum blockchain is referred to as the Mother of Dapps. In recent years, the adoption of dapps has certainly increased. Thus, the adoption of decentralized applications will continue to grow. Dapps are completely built on a decentralized network. So they provide all the advantages of blockchain.
Presently, there are plenty of Dapps in the market. Such as CryptoKitties, Ripple, Golem, and more. Developing a Dapp might be a challenging one. Because developers need to create ethereum smart contracts for apps. Then test them on the blockchain network and try them multiple times. However, the growth of dapps will hit a massive height in the upcoming months. So you need to choose a trustworthy company to build a Dapp.
- Usage Of Asset Tokenization will Expand
As of now, the concept of an asset tokenization platform is one of the top blockchain business trends in the market. Asset tokenization is mainly used to tokenize the real-time asset into digital format. So there is no possibility of fraudulent activities. Also, avoids the intervention of third-parties or intermediates. There are different types of asset tokenization. Such as debt tokens, equity tokens, and more. The high-value property like real estate, commodities, venture capital funds, stablecoins, precious metals, and more. These real-time assets can be completely tokenized and can also be used in trading platforms. Asset tokenization includes various beneficial factors. Such as globalization, user transparency, blockchain immutability, reduced costs, fractional ownership, and so on. Thus, many business class people and budding startups prefer asset tokenization platforms to reap more profits.
- Token Crowdfunding platforms
As many of you know the concept of crowdfunding. In general, the crowdfunding process helps startups and any individual to raise the funds effectively. The same follows in the crypto crowdfunding platforms in the blockchain industry. It is one of the significant blockchain industry trends that everyone can utilize. Three different crowdfunding models are recent trends in the marketplace. Such as Initial coin offering, Initial exchange offering, and security token offering.
Initial coin offering (ICO) is one of the popular crowdfunding platforms in the blockchain market. Many startup and budding entrepreneurs will opt for this way of fundraising platform to develop their business ideas. Because launching the ICO will take only a minimum cost. Also, during the ICO process, there will be no intervention of the government or any officials. Thus many people create their own token for raising their funds. Whereas IEO is also a prominent crowdfunding platform and acts as a feature in the trading platform. It works the same as ICO and has some similar functionalities. STO is the security token sales platform. It has certain rules and conditions to develop an STO. Thus, the crowdfunding platform is one of the best blockchain trends in 2020.
- Blockchain Interoperability
Currently, there are a lot of existing blockchain projects that are successful in the blockchain industry. Not only the existing projects but many new ones will arise in the future and revolutionize the industry. According to recent reports, the blockchain market is estimated to gather more than $20 Billion in revenue by 2024. Such impressive and upsurge growth makes cross-chain communication essential for the blockchain industry.
Blockchain interoperability is mainly used to share information across various systems. Thus, it makes them more practical and efficient. Also, it improves the multi-token transactions with the multi-token systems based on blockchain. By using the possibilities of different networks, developers can generate powerful multi-channel solutions. As of now, some platforms are already working on such communication. For instance, Blocknet has an efficacious solution that connects nodes from various networks.
- Social Media Security with Blockchain
In this current time, there are about 3.81 billion social media users across the globe. But interacting with different platforms and exchanging different types of content. The implementation of Blockchain solves various issues related to social media. Such as privacy violations, content relevance, and data control.
The combination of Blockchain and social media is an inevitable trend in the Blockchain industry. The utilization of blockchain in social media will ensure that the data published on social media would remain untraceable and can’t be duplicated. Users will gain the benefit of secure data storage. Also, they will get control over data ownership.
- Blockchain Combines With IoT
The IoT market will focus on security and protection as complex safety challenges. The number of Internet-connected devices has now breached more than 26 billion. The centralized architecture of IoT is one of the main reasons for the vulnerability. With billions of devices connected, IoT will be a big target for anonymous attackers. So it makes security extremely important.
Blockchain gives new hope for IoT security for some reasons. Such as
- blockchain is a public network, so anyone can participate in the network of nodes. Also, they can see the blocks and the transactions stored.
- blockchain is completely decentralized, so there is no Single Point of Failure (SPOF) weakness.
- Most importantly, it provides security to the database and nobody can alter the previous records. As of now, many IoT based companies are also starting to adopt blockchain technology for their business solutions.
- Blockchain with AI
The integration of Artificial Intelligence with blockchain technology will help better development. It will show a level of improvement in blockchain with a sufficient amount of applications. Additionally, blockchain can also make AI more understandable. Also, we can determine why decisions are made in machine learning. However, AI can boost blockchain efficiency better than humans. Currently, blockchain run on standard computers proves that a lot of processing power is needed to perform the basic tasks. There are some examples of blockchain with artificial intelligence. Such as Smart Computing Power, Creating Diverse Data Sets, Data Protection, and Data Monetization
These are the top 10 blockchain industry trends in 2020. Blockchain is here to stay and in the future to provide lots of beneficial factors. Also, it increases your trust and improves security with zero transaction cost. I hope this article has helped you to gain some knowledge on the blockchain trends of 2020. Keep these blockchain industry trends in your mind and utilize them perfectly!