By Author at Klizo - January 28, 2021
What a year 2020 was! Not everything went as expected or planned; courtesy of course the Covid-19 pandemic! While many industries suffered beyond expectations; several new trends were generated, and many ’underway’ trends got intensified.
Everyone is eager to know what this new year 2021 holds in its kitty or how will be the future blockchain applications. If you are a tech freak, related to the business somehow, eager to know about the future applications of blockchain, whether there’s a magic crystal ball or not, then this article is what you need to go through.
Before moving on to the future of blockchain applications, let’s have a quick look at some of the blockchain tech statistics to have a clear idea of its potential in the coming years.
Let’s take a look at some of the facts and statistics related to blockchain technology that will better enlighten you of the numerous possibilities of blockchain.
Over the last few years, decentralized finance has grown and transformed into a complex variety of platforms from being a blockchain-based FinTech sandbox. These platforms are based on the Ethereum blockchain, where investors, lenders, and borrowers can perform bank-like transactions without needing any bank. And in 2021, the application of blockchain in decentralized finance or DeFi will be more than ever before.
When it comes to the blockchain and cryptocurrency landscapes, DeFi loans are something that is growing pretty fast. According to the CEO of Radix, Piers Ridyard, “the hype may die down a bit, but the actual progress being made will make it DeFi’s biggest year yet.” And the growth of DeFi development will not only set the stage for more effective and efficient protocols in future but will also help the DeFi applications to be more secure, easy and cheaper to build as well as to scale.
The term tokenization refers to the process of converting both physical and non-physical assets into blockchain-based digital tokens. In the cryptocurrency space, the concept of tokenization is not only growing popular but also paving its way into the traditional industries.
Gone are the days when there used to be the only bitcoin. Now from governance to security tokens and even utility tokens, more and more assets are being tokenized. And in 2021, in combination with decentralized finance, tokenization is likely to grow beyond imagination. And have this been true, it’s time that more and more businesses and industries get ready to participate in this growing ‘token economy’.
The surveys and research performed by institutions like Deloitte Business Institute and World Economic Forum, the value that blockchain adds to businesses is likely to exceed $176 billion by 2025 and grow more than $3.1 trillion by 2030.
Ask anyone and they can name some popular platforms for developing blockchain applications. But to integrate this technology smoothly into your business applications, it is always better to hire professionals like us, one of the top blockchain development company.
In the past year, leading financial services companies like Visa, PayPal, JPMorgan, etc. have already adopted cryptocurrency as their payment method. As more and more startups, armed with capital, are heading towards developing more user-friendly blockchain-based platforms, they are believed to work certainly in favor of cryptocurrencies.
The year 2020 had been undoubtedly the banner year for cryptocurrencies. But both blockchain and cryptocurrencies have progressed and moved from earlier times and now have become a crucial part of mainstream businesses. This year, while stable coins are believed to lead the way, bitcoin is expected to close the year with prices above $30,000.
The more apps on financial services will be built using blockchain technology, the greater and wider will be the acceptance of cryptocurrencies.
We are currently working on some pretty cool blockchain and cryptocurrency projects for industries like cannabis and psychedelics, real estate, banking, and insurance. The interesting part is that there are some companies that offer rewards in the form of cryptocurrency or digital tokens. Using these rewards, consumers can purchase products or services later. For instance, if you are a member of the PotCoin community, you can get certain benefits through WeedMD, a licensed cannabis producing company in Canada, for medical marijuana prescriptions.
Do you know what CBDC is? If not, then know that it’s a Central Bank Digital Currency that represents the official currency of a country through blockchain-based tokens.
And with China starting the trials of its new CBDC project, i.e. DCEP or Digital Currency Electronic Payment, the momentum of CBDC projects in other countries has literally spurred. Yes, central banks across the world are now racing towards developing digital currencies of their own.
Yes, the outbreak of the pandemic has tremendously accelerated the digitization of almost everything in 2021. With China’s CBDC in news, expect to see more CBDC projects or digitization in the finance sector in 2021.
The chief marketing officer, Douglas Borthwick, of INX, predicts, “For 2021 we see the beginning of a digital migration”. He further adds on the digitization and CBDC projects, “…the benefits are extraordinary: 24/7 trading, and cap table management in real-time. 2021 is the year that legacy migrates to digital.”
Private blockchains aka permissioned blockchains are expected to be the main contributor to the growth of the blockchain market. In 2021, this additional blockchain security system is expected to retain the maximum market size and blockchain market opportunity.
Why? Well, unlike enterprise blockchains where solutions are developed and customized as per the requirements of the corporate businesses; in private blockchains, there are more opportunities for corporates when it comes to utilizing blockchain for use cases business-to-business.
As permissioned blockchains deliver more privacy, transparency, reliability, and higher efficiency, in 2021, this distributed ledger network will be something to look out for in the future of blockchain 2021.
Last but not the least, in 2021, there will be blockchain-based Zero-Knowledge Proof in trend. For dealing with all the ‘preserving confidentiality’ related challenges that are already there holding back many blockchain projects and blockchain industries, blockchain-based ZKPs are very much needed.
Now, what ZKPs are? Well, they are cryptographic protocols that help one to prove that he knows a value, without actually revealing the value. With ZKP solutions implemented on the blockchain, ensuring the much-needed privacy will be possible.
Without sharing sensitive information, ZKPs help companies verify their record-keeping systems on a record-by-record basis. Though recently quite a lot of progress has been made on ZKPs, in 2021, more and more solutions are anticipated to use ZKPs in broader ways than before.
According to experts, thinkers, leaders, and other industry oracles, 2021 is expected to witness greater capital investment ventures and various adoption of blockchain technology.
If you’re looking forward to integrating blockchain future trends into your financial services or to develop advanced applications, then know that we, Klizo Solutions, are just one call away. From industries like insurance to real estate, we have helped even the banking industry to integrate blockchain technology.
Yes, it’s true that blockchain faces many hurdles and will continue to do so even in this year as there’s still misunderstanding and confusion among consumers regarding the use of this versatile technology and the related financial services it offers.
But it will not hinder the growing number of investments that blockchain is likely to receive in 2021 from different industries like financial services or banking, cybersecurity, food and agriculture, intellectual property, and certainly, healthcare.
Connect with us today to integrate futuristic blockchain ideas into your business and make your business processes more simplified, secure, and advanced!
Author at Klizo
KLIZO is your go-to technology partner, founded by Joseph Ricard. We create amazing apps and tech in an enterprise environment. Our author is a techie with more interest in researching and writing about the advanced technology sphere than writing codes. And when not working, you can probably find her headbanging under the 'Porcupine Tree' with some progressive metal!