Blockchain in 2021: 4 Trends to Watch
The real concern in today’s online world is navigating safely through it. Hacker attacks are getting intense and it seems like that things will get worse if we don’t combat them. Well, if the hackers are getting smarter, the ways to prevent hacking are also improving too quickly. In fact, we already have blockchain as an impenetrable technology that makes our data immutable and thereby protects it from cyberattacks.
Blockchain technology is giving way to businesses for tackling their key pain points – above of all is data security. Here’s what business and IT leaders should watch for in 2021.
Growth of Practical Adoption:
In the past couple of years, blockchain experts struggled to move from PoC (proof-of-concept) to MVP (Minimum Viable Product). Now, with technological maturity blockchain platforms continue to evolve and its momentum will keep growing in 2021 with more practical adoption – since PoCs become MVPs.
A more visible and fast transformation is expected from experimentation across different industries like healthcare, banking, and supply chain optimization, etc., to actual production use. For the reason that companies are more inclined to address the real-world issues through blockchain empowered systems.
Cloud Native Scalability:
Another most emergent trend of 2021 is the blockchain technology moving to solve its scalability issues through cloud technology. There are numerous use cases wherein cryptocurrencies facing the scalability issue – both vertical and horizontal notions of scale inducing considerable latency – and almost derailing the blockchain value. The indispensable solution to handle this problem is employing the cloud computing architecture – a serverless solution to resolve this latency that’s resulted from the conventional approach in which limited machines are doing the same work.
The serverless cloud architecture helps spin up thousands of machines on demand – without running out of space, memory and network capacity – for every individual node of a blockchain. With this trend, there will not only be a dramatic reduction in latency and interruption otherwise inherent to scalability, but also help create new decentralized ecosystems at scale.
Middleware Abstraction Layers:
This technology option helps shield enterprise users from blockchain’s technical complexities happening at the backend. Blockchain adoption today on the enterprise level is not that easy and so is the development of decentralized applications and how they will be integrated with legacy systems, interoperated across blockchain platforms, and communicate with other blockchain networks. It’s mainly because of the blockchain development skills and data standards that are generally scarce, and unclear rewards – when enterprises make thorny decisions around still-immature blockchain technology.
In 2021, more entrepreneur companies are assumed to contribute in different categories of blockchain solutions – including blockchain abstraction platforms and trusted integration brokerage.
Dominating FinTech Blockchain:
In 2021, the banking and financial sector seems to be dominating the market and expected to exhibit exponential growth in fintech and blockchain technology adoption. Amongst all the industries, these two are the areas that have been gravely hit by the global pandemic. The tightening margins and falling profits have pushed these sectors, especially the banking industry, to adapt and modernize their operations to meet the rising customers’ needs in the increasingly advancing digital world.
The adoption of fintech blockchain enables these sectors to streamline and optimize their operations through contactless transactions, smart contracts, and redesigned financial services.
Previously tied to cryptocurrencies only, blockchain technology today is applied to multiple industries – from manufacturing, to supply chain and retail, etc., – to bring transparency, sustainability, tracking, and others. It helps improve cybersecurity across all industries.