2019 was an excellent year for the blockchain and crypto spheres owing to the birth of new cryptocurrency trading products, new alliances, a wide array of blockchain protocols that matured, and Bitcoin and Ethreum surviving the bear market. Now we have successfully entered the year 2020. Technologies are developing at such a rapid pace that we need to start thinking about the blockchain trends we can expect in 2020. Blockchain is a disruptive technology with immense technology whose scope must not be narrowed down just to cryptocurrencies, as it has a much wider scope than just the implementation of transactions.
This article will touch upon the top blockchain trends you can look out for in 2020. Before delving deeper, let us first understand why blockchain is so much in trend and why the whole world is going crazy about it.
Reasons for the Popularity of Blockchain
Blockchain is an influential technology that has passed the test of time. More and more businesses are trusting it and integrating it into their processes. Some of its notable advantages are the secure registry, smart contracts, secure user identification, decentralization, smart storage, transparency, etc. Blockchain ensures the protection and effectiveness of an enterprise and helps save a ton of resources. It aids the individual development of an organization and also helps raise the global GDP.
Raising capital is one of the popular features offered by blockchain today. The distributed registry helps conduct transactions quickly and safely. Blockchain carries out the processes of data collection and storage efficiently. The decentralized network allows the exchange of information sans additional requests. It offers great information security. On the whole, blockchain is the foundation of transactions, markets, ecosystems, and services that define today’s existence.
Top Blockchain Trends of 2020
Let us now list down some of the most expected events that are all set to shape the blockchain ecosystem in 2020.
1. Microsoft and Amazon using Blockchain-as-a-Service
BaaS or Blockchain-as-a-Service is a trend that has been significantly contributing to blockchain development. BaaS is currently being integrated with many enterprises and startups. It is basically a cloud-based service that allows users to develop their own digital products using blockchain. These digital products can refer to applications, smart contracts, or other services, that can work without setup requirements of a blockchain-based infrastructure. Some of the major players in the field of BaaS are Microsoft and Amazon. There are also others, such as IBM Cloud, VMWare, and Oracle Blockchain.
2. Stablecoins Will Dominate the Crypto Space
Stablecoins are cryptocurrencies designed to offer stability and minimize price volatility. The best example of a stablecoin is Tether. The major advantage stablecoin offers over other cryptocurrencies is the fact that its value never gets affected by market conditions such as currency crashes, and it always remains stable. There will be increased adoption of stablecoins in 2020. Blockchain experts are of the opinion that the future of stablecoin is bright owing to the following reasons:
- Affordability and fast remittances.
- Immunity from issues like currency crashes.
- Stable currency exchanges.
- P2P payments and streamline recurring.
- The feature of being used as a regular currency.
3. Blockchain Will Transform the Social Networking Domain
As we know, social media and social networking have become part and parcel of our daily lives. According to findings, in 2019, there were around 2.77 billion social media users across the globe. Introducing blockchain in social media will help solve issues related to data control, content relevance, privacy violations, and notorious scandals. Blending blockchain with social media is a trend that has already caught up to a great extent and is only expected to increase in 2020.
By implementing a blockchain, we can ensure that the data published on social media cannot be traced or duplicated, even after deletion. Users can store data securely and maintain ownership of data using blockchain. Blockchain provides the power of content relevance to the people who created it and not to the owners. Blockchain experts and enthusiasts strongly believe that the usage of blockchain in social media will increase to a great extent in 2020.
4. Content Streaming Will Be Secured Using Blockchain
Content streaming is an emerging blockchain trend of 2020 that will become highly popular in the coming years. Movie streaming services like Netflix and Hulu will incorporate blockchain and its solutions to store user data in an accessible and secure manner. More and more video, music, and social media streaming companies will opt for an API that is similar to blockchain. This will help third parties to read and write information on the respective blockchain.
These are some of the blockchain trends we can expect in 2020, out of the many more that are expected to happen such as China launching its Central Bank Digital Currency, the launch of Facebook’s Libra with limited functionality, expansion of privacy tools and oracles, and increased interoperability between blockchain protocols.
Blockchain technology will certainly play a leading role in integrating ideas and eventually setting the stage for digital transformation. Blockchain has far more potential than cryptocurrencies such as Bitcoin and Ethereum. This is just the beginning. Blockchain is one such concept that is certainly here to stay and transform the world for the better.