In today’s modern world, the evolution of technology has been making lives simpler for people more than ever. Technology has brought people close to each other, and we can now connect with our friends and family within seconds, no matter where they are. Now, we can do things that we could not even imagine until a few years back. It has opened up an ocean of opportunities for individuals and businesses across the globe. Technology has enabled companies to do business with people and other organizations anywhere in the world. Let us learn about various blockchain trends in this piece
When the world faced the outbreak of the global pandemic – the COVID-19 in 2020, people could not go out of their homes. They were forced to work from their homes, which was possible due to the seamless connectivity technologies that we have in place today.
Another technology that is making a significant impact is blockchain. The blockchain technology is here to stay. If appropriately utilized, blockchain technology has all the potential to revolutionize processes and operations, in many industries and even government agencies. However, adoption requires both time and effort, as it is still in nascent stages.
If you are wondering what this technology is all about, you have reached the right place. It is because today, we shall be talking about the nine blockchain trends of 2020. But, before that, we shall first get introduced to blockchain technology. So, let us begin!
What Is Blockchain Technology?
The blockchain technology has been recognized as one of the top ten strategic technologies for the year 2020, by Gartner, which is one of the most respected research and advisory firms in the world.
In easy terms, it can be defined as a decentralized and distributed ledger that records the provenance of any digital assets. It makes the history and information of the assets transparent and unalterable. It uses decentralization and cryptographic hashing technologies to achieve this.
The best example of using blockchain technology is that of sharing a Google Document. When you create a Google document and share it with someone, it actually does not get transferred or copied. Instead, it gets distributed to a group of people.
The document becomes decentralized, and every person with the link will have access to the document at the same time. The document would not be locked out for others while one person is working on it. All the changes being made to the document by multiple people in the group are recorded in real-time. Thus, it makes the changes to the document entirely transparent for everyone in the group.
While this is just one of the examples, there are a lot of things in the online world where technology can be put into use. However, the blockchain technology is more complicated than a simple Google Doc, but the analogy is apt, as it illustrates the following critical ideas of the technology, which are:
1. All the digital assets are distributed among a group of people, instead of being copied or transferred.
2. The digital assets are decentralized, thus giving full real-time access to everyone in the group.
3. It provides a transparent ledger of all the changes made to the digital asset, which preserves the integrity of the document. It creates more trust in the digital asset.
Thus, we can assume that any digital asset that complies with the above said ideas of technology is a root of blockchain. Now, let us talk about the nine trends of blockchain technology in 2020. Here we go.
1. Blockchain as a Service (BaaS)
You might have heard about Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a service (PaaS). Still, Blockchain as a Service (BaaS) is something that you will surely hear a lot about in the coming days.
This new trend is currently being integrated with several companies across the world. The technology enables companies to create real-time decentralized digital products that work with blockchain. With this, you can create cloud-hosted decentralized apps (Dapps), which all the employees of a company can simultaneously use.
These apps have all the potential to replace the intranet-based ‘shared folders’ that most companies use these days. The best thing about Dapps is that they do not even need any setup requirements, as well.
Major tech companies, including Microsoft and Amazon that are already competing with each other in the cloud space, are developing their own BaaS platforms. With the involvement of giants like these two companies, they are indeed shaping the future of blockchain applications.
2. Adoption Likely To Increase In 2020 And Beyond
As we told earlier, blockchain technology is here to stay and is all set to become a more significant part of our lives in the days to come. Most of us got introduced to blockchain technology through cryptocurrencies like Bitcoin, etc. However, it has now branched itself out to various applications.
The technology is currently being used in various industries, including food-safety, voting, shipping, etc. Now, several tech giants across the world, including IBM, Walmart, Amazon, etc., are exploring different ways to utilize this revolutionary technology.
Hence, the adoption of technology is further expected to increase this year and the coming years. Some of the most potential industries that can benefit from using the technology include administration, supply chain, medical data, 3D printing, etc.
3. Careers In Blockchain
Just like the introduction of the internet led to millions of jobs driven by the new technology, the blockchain technology is expected to bring in a revolution. As the adoption of the latest technology is expected to grow, it will naturally require more and more people to work on the technology. If you are into software development, you are likely to be benefitted the most. It is because many companies across the world are looking to adopt this technology into the development of apps.
4. A Savior On Social Media!
In today’s date, we do not even need to mention that the online world is not safe. All the data that we share with our friends and family on social media sites is at risk. Hackers can have access to sensitive information like passwords, financial data etc.
While there is no fool-proof method to ensure absolute data security at the moment, blockchain could potentially be a solution, as it can avoid duplication and unauthorized access to the data. The data will remain safe with the owners. However, we still have time before this tech comes into mass implementation.
5. Integration Into Government Agencies
Currently, different government agencies across the world have different ledgers for their databases. However, the idea of distributed ledgers is undoubtedly something that a lot of governments are currently looking at. It allows effective data management, which will improve the functioning of such government agencies.
6. Finance And Economy Applications
As compared to the other industries, the banking and finance sector companies are adopting blockchain technology faster. It is because they do not have to transform their operations to adopt new technology significantly. It is expected that around 77% of the financial institutions will adopt this technology by the end of 2020.
7. Integration With IoT
With the increase in the number of devices connected to the internet increasing, the market is seeing a renewed focus on data security. Currently, around 26 billion devices are connected to the internet, which means that there is a lot of risks of issues like hacking, cyber-attacks, etc. However, the integration of blockchain technology with IoT is expected to act as a solution to all those challenges.
8. Federated Blockchain
There are four types of blockchain forms, including private, public, hybrid, and federated. The latter – i.e., the federated blockchain is the upgraded form of basic blockchain, that gives multiple authorities, instead of just one, control over pre-selected nodes of blockchain. This technology is gaining more prominence these days and is surely expected to take center stage in the coming days.
9. More Visible Usage Of Stablecoins
We all know how volatile Bitcoin and other similar cryptocurrencies are. So, to avoid this volatility, we now have stablecoin that has a stable value linked to it. It has industrial backing from companies like Fiat, which means that stablecoins are going to keep trending in the foreseeable future, at least.
Summing It Up
Like we mentioned above, blockchain technology is still in the nascent stage but is here to stay. The technology has all the potential to revolutionize the world of the internet. Hence, there are a lot of trends that we can see in the world of blockchain technology.
Some of the latest trends we see include its adoption to beef up data security on social media, usage by government agencies, Blockchain as a Service (BaaS), which is being offered by several tech-giants. While these are only a few trends listed in this article, the new technology has a lot of scope in many industries. In other words, it is the future of the internet.