Where is Blockchain Heading Towards in Post-COVID Era?
Blockchain has been one of the most talked-about technologies of the decade. The adoption of Blockchain tech in business has been gaining momentum over the past years, most notably in fintech, banking, FMCG, and manufacturing have witnessed a sudden halt. Many trends were important but didn’t make the headlines in 2021, as it has done previously.
One silver lining here is that Blockchain adoption and implementation have manifold during the pandemic, especially in coping with the fragility of the supply chains, and people moving towards digital transformation across various industries.
Blockchain adoption would increase in 2021
Blockchain adoption is likely to witness an exponential rise in its adoption rates in the year 2021. The cryptocurrency was the most talked-about application of Blockchain until now. Blockchain is successfully being used in the areas such as food safety, voting, and shipping by big brands such as IBM, Walmart, and Amazon. Numerous other big and well-known brands are exploring a plethora of ways to capitalize on this trailblazing technology.
Here’s what organizations are thinking for Blockchain planning and adoption:
For example, in the area of 3D printing, Blockchain makes it possible for organizations to integrate provenance, data governance and ensure audibility of the data and industry uses this technology to ensure transparency, traceability of the diamonds back to their origin and ensure that the diamonds are genuine and not a product of conflict mining.
In addition to the above-mentioned use-cases, Blockchain technology is also being used to tackle various climate change issues, monitor food wastage, and carbon emissions. These are only a few applications that would demonstrate the wide-ranging usage of Blockchain technology in the year 2020–21.
The rise of enterprise Blockchain
Enterprise Blockchain also referred to as private blockchain, refers to the Blockchain ledger that falls under the centralized “owner”, the owner being the company that has deployed the chain. In Blockchain, bitcoin is what takes the most space in headlines. A major sector of people is still unaware of the application of blockchain in various sectors including blockchain in healthcare, pharmaceuticals to finance, and diamond mining. So, on one hand, cryptocurrencies are the hallmark of robustness, and businesses all over the world are busy proving their worth.
According to a report, investment in Blockchain technology has been anticipated to reach $16 billion by the end of 2021, and this spending was calculated to be around $2.7 billion in 2019, and we will see this acceleration in the coming year.
The trust in Blockchain technology is also increasing. A recent survey by Gartner depicts that 14 percent of enterprise Blockchain projects have moved to the production phase in the year 2020, in comparison to only 15 percent doing so in 2019.
While talking about the rise of Blockchain in this era, Banking and financial services would be surely leading the way, owing to the suitability of ledger and accounting. Apart from the above-mentioned two sectors, applications would be increasingly witnessed in healthcare, manufacturing, distribution, and professional services.
Increasing adoption of Blockchain-as-a-service
The Blockchain-as-a-service model has increased the adoption of the latest techn0logy trends such as Cloud computing, the internet of things, and Artificial Intelligence. Big players in the industry such as IBM, Amazon, and Microsoft are all offering or developing tools and platforms that enable businesses to easily integrate this platform without making any upfront investments.
Beyond the application of Blockchain as a store of value, advanced implementations such as Ethereum blockchain allow the creation of “smart contracts” and other decentralized technologies. For instance, a smart contract is executed when a condition is automatically met, and this method ensures successful payments when a project is rendered off complete. Cloud-based as a service platform would bring this technology within the reach of the organizations which are otherwise incompetent to integrate such technology.
The emergence of NFTs
NFTs are one of the hottest topics we are hearing about at the moment, and the trend is certainly going to increase this year. NFTs are non-fungible digital assets that are stored on the blockchain and therefore are said to have trust and transparency. This trend is creating ways for the industrialists to create a lot of money, for example- the musician Grimes that sold this artwork as an NFT for $6.6 million and generated $230 million in sales of baseball video clips.
Some people refer to NFTs as “digital collectibles” because similar to digital files, they cannot be duplicated, and bring key importance to the economic principle of scarcity. This trend may have far-reaching implications than it may seem today.
Over the past decade, many of us have become more increasingly comfortable with the idea of buying digital assets- but the fact that whatever we buy in the digital world, is unique and personal to us, and if we don’t buy we just pay for the license to use it.
Tackling supply chain challenges in the post-COVID era
If we are talking about Blockchain trends in 2021, we cannot miss the role of Blockchain technology in the supply chain industry. Supply chains these days have become very complicated, which may be due to rising cases of fraud and lack of transparency. Moreover, it becomes quite difficult to investigate supply chains in case of illegal activities.
The main challenges in the supply chain are as follows:
Earlier supply chains were comparatively simpler, this was because e-commerce was not as global as it is today. With supply chain globalization, the complexity has increased, and brought up a need for more mature technologies such as Blockchain.
According to the marketing charts, approximately 44 percent of the US shoppers are using both online and in-store. A major problem with the supply chain is the conflict, and there are so many middlemen leading back and forth. An increase in supply chain complexity is a major problem in overcoming the challenges.
This is what a Blockchain-enabled supply chain looks like:
The adoption of blockchain technology is rising, and that brings up a need for proper implementation techniques to make enterprises stand out. If you are looking for a Blockchain app development organization to assist you with your blockchain app idea, Debut Infotech is the right place for you. Visit us now to know more.