5 Blockchain Predictions for 2021
2020 has been many things, there are many words you could use to describe this year, it’s definitely had its ups and downs. For the crypto market, it seems like this year is ending on a high. With Bitcoin soaring past its previous all-time high at $20k to new heights at around the $24k mark, coupled with the CME announcing the launch of Ethereum futures and PayPal announcing that they will allow users to buy, sell and store multiple cryptocurrencies on their platform, 2021 is looking bright for the crypto space. There is definitely a lot on the horizon to look forward to, we’ve put together some predictions from the crypto community for 2021!
The number of Central Bank Digital Currencies will increase
There is a rising trend amongst central banks worldwide that are exploring the possible launch of their own central bank digital currency (CBDC). According to a recent BIS report 80% of central banks worldwide are looking into the pros and cons of cryptocurrency. This will most likely intensify in 2021, driven by the diminishing use of cash, the digitalisation of the economy, and the rise of peer-to-peer economies. The Chinese government seems to be ahead of the game, recently indicating that they will accelerate their research into cryptocurrency and blockchain technology, pushed by new requirements that have emerged due to COVID-19. The Chinese government have already executed dozens of experiments amongst citizens and corporates and may even be ready for a worldwide roll-out. The ECB (European Central Bank) are aiming to make a clear direction with their Digital euro project mid-2021.
30% of projects will make it into production
It is forecasted that a growing number of blockchain-based projects will switch to the production stage. This number doesn’t just reflect the more realistic approach to projects and the increasing maturity of the technology but also the pandemic-induced acceleration and initiation of projects that may bring “measurable benefit within a short timescale”. According to Gartner more than 40% of the surveyed corporates has at least one blockchain pilot running. They predict that 30% of global projects will make it into production, partly due to the impact of the COVID-19 pandemic. The majority of networks that transition from pilot to production will thereby run on private enterprise blockchain platforms.
Private blockchains will become more popular
Another trend we will observe is that private blockchains will become the main contributor to the blockchain market growth and are assumed to retain the largest market size in 2021. Enterprise blockchain solutions are developed customized according to a corporate’s business needs. Private blockchain provides more opportunities to corporates in terms of utilizing the blockchain technology for business-to-business use cases. They deliver higher efficiency, privacy, reliability, and transparency, while security is provided to a private blockchain using private keys that are known only to authorized persons in the organization.
Growth of DLT-offerings by non-traditional financial institutions
Another trend we are likely to see more of in 2021, and also fueled by COVID-19, is the rise in the number of non-traditional financial institutions. This will be pushed by the growing number of corporates but also consumers that are getting more comfortable with blockchain-based transactions and financial services. Now there are more non-bank options delivered by institutions ranging from non-bank lenders, to crypto-currency based banks, to fully decentralised financial (DEFI) services alternatives.
CUDOS will contribute towards the development of Cloud 2.0 and Web 3.0
CUDOS will facilitate a network for distributed computational power, giving users the ability to rent out excess compute power to network participants in exchange for CUDOS tokens. With the continuous development of Web 3.0 protocols, such as machine learning and artificial intelligence (AI), the demand for computational power continues to increase. The current options available to business and projects that are centralized and expensive, CUDOS gives businesses the opportunity to get access to all the compute power they need for a fraction of the cost. You could say CUDOS is the Airbnb of compute power. To find out more about our project please visit www.cudos.org or visit one of our social media channels via the links below.