Covid-19 has revolutionized the way that we interact with one another, live, work, and communicate. The digitalization of every sector is being accelerated by the increasing use of online activities in daily life. This makes it more crucial to foster and maintain trust among multiple parties. Blockchain is key to strengthening trust within this digital environment. This is evident in the ever-increasing global investment in blockchain solutions.
It is predicted that blockchain will reach US$15.9 Billion in 2023. Ten times more than what was invested in 2018 ($1.5 Billion). Blockchain will be a key component in many important sectors by 2021. Let's take a look at the top blockchain trends in 2021.
Blockchain Technology Trends In 2021
1. Blockchain Transition will be Accelerated by Covid-19
Many blockchain projects could be reoriented. Experts predict that 90% of blockchain projects will require replacement within one year. This is because most people ignore features such as tokenization, smart contracts, and decentralized consensus. A pandemic has also made it possible to develop more practical and realistic approaches to blockchain initiatives, especially those that are focused on the daily business of helping businesses "continue their growth." It is expected that blockchain projects that have clear advantages will accelerate their growth in the next year. There has been an increase in interest in joining networks that help to address supply chain issues raised by the pandemic.
2. New Heights for Cryptocurrencies
The most well-known application of blockchain technology is cryptocurrencies. Cryptography money can serve both a compensatory and production role. All crypto markets have had a good year in 2020. Expectations are that 2021 will be even better for Bitcoin and other cryptos. This is the main reason why digital currencies are now the most popular as researchers look for refuge resources.
Bitcoin is perhaps the most powerful player in the digital currency market, despite being vulnerable and unaffected by external components such as government strategy. Cashless transactions could become a viable option for cryptographic money as we move into 2021. With the contrast fluctuations in crypto, however, everything could become normal.
3. The Holding of Long-Term Strategic Projects
Many organizations have stopped working on long-term DLT-related projects due to the volatility and unpredictability caused by COVID-19. Most long-term strategy projects that require changes in market structure or regulatory changes are working with extended timelines. It is becoming more difficult to get budgets for R&D and experimental projects that are run independently from the business. This will result in a lot of these projects being put on hold.
4. Companies Should Accelerate their Digital Transformation
Digital transformation will be a necessity for businesses in 2021. The COVID-19 pandemic has put a lot of pressure on businesses. It is essential that corporations start a digital transformation process in order to be more successful. In the coming years, blockchain innovation will make some of the most remarkable and exciting changes to business functions. Many businesses use blockchain to help them become more digital.
5. The Financial and Banking Sector will dominate the Market-
The financial sector is the most affected industry by the COVID-19 epidemic. Falling profits and shrinking margins forced banks to adapt and meet the changing needs of their clients in a digital age. They can modernize and inline their operations by adopting fintech and blockchain technology. This could lead to a significant increase in contactless transactions as well as redesigned financial services. The financial and banking sectors are expected to see an exponential increase in blockchain adoption over the next years. This will ensure that this sector is the largest market in the global blockchain market over the next few years.
6. 30% of Global Projects Will Make it to Production-
Many blockchain-based projects are expected to move into production. This is not only a reflection of the more realistic approach to projects, growing technology development, but also pandemic-induced acceleration or initiation of projects. Statistics show that more than 40% of the surveyed corporations have at least one pilot for blockchain. The pandemic effect will result in 30% of global projects making it to production, according to the prediction. Many networks that go from pilot to production will use private enterprise blockchain platforms.
7. ZKP-
In 2021, Zero-knowledge proof (ZKP), will be the next big trend. ZKPs are needed urgently to address the confidentiality issues that currently hold back blockchain projects. ZKPs, which are blockchain-based, allow companies with different record-keeping systems to be verifiably "in synchrony" on a record-by-record basis without having to share sensitive data. ZKPs have seen significant progress in recent years. There are many options available to deploy ZKPs. ZKPs can be used to place mortgage requests on the blockchain. ZKPs, which are a type notary, will automatically approve or deny a request. ZKPs can be more difficult than coding a smart contract without privacy. However, corporates might shift from developing Dapps towards developing ZApps for security reasons.
8. Social Commerce and Influencer Marketing
As digital becomes more expensive and budgets shrink, the gap between those who invest in influencer advertising and social business will increase. Brands that did not use digital media to generate client affiliations ordeals prior to the pandemic will be forced to digitize. Social media platforms that were established before the pandemic are likely to be examined and revealed tools for business decision-making. This will allow brands to create bonds with clients.
Wrap up
Blockchain technology can lower transaction costs. They can also guarantee fast transaction processing speeds. All traded assets within businesses will eventually be connected to blockchain technology. The market will be led by blockchain and cryptocurrency. Consult with experts from Errna if you're thinking about adopting blockchain technology in your business. Experts are available to assist you. Get help from Errna for blockchain development using new trends. We are happy to assist you.
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