Essential Blockchain Trends
The exposure that the blockchain technology benefits from for a while now is on an ascending path that is unlikely to stop in the near future. The blockchain uprising is nowhere near its end. In fact, what we are witnessing are the incipient stages of this groundbreaking technology. Since investors keep pumping money and resources into its development, we are bound to see significant progress soon.
Blockchain efficiency is evident, and it’s the security aspect that has led to its resounding success in the financial field. The verification system it provides was the security feature many banking and investment institutions had been looking for. The benefits of blockchain are now spreading to many other industries, but there are also many businesses that aren’t willing to accept its contribution just yet. As a result, there are quite a few trends that affect the evolution of the blockchain technology, and below we will list the ones with the highest impact.
Blockchain Hype Fatigue
The hype that blockchain has registered these previous years is unprecedented. While it’s definitely a positive thing, it also raises the question of whether all that promotion was worth it and if the results match people’s prognosis. At this point, blockchain is holding on to its business value, but the general efforts are starting to face a different direction. Now that the validity is no longer an issue, the technology is concentrated on improving services.
Practical Applications are the Future
Cryptocurrency has definitely been the primary focal point of the blockchain technology so far. But its usage needs to go beyond that. Blockchain-based inventions can be useful in many industries, and that’s the current intention. Many companies are already using blockchain technology for their daily operations in several fields, from medicine and banking to transports and logistics.
Industrial representatives are starting to realize there’s more to the blockchain that digital currency, and that it can actually be applied in several sectors. A fraud-resistant system is something any industry can benefit from. The blockchain technology has even proved its efficiency in agriculture.
More Jobs for Developers
With the development of blockchain technology and its spread towards new sectors of the market, there will also be a higher demand for developers. Even freelancers that have the desired skills will have a significantly increased activity.
Growing Government Involvement
With the increasing interest in initiating digital currencies owned by the state, the governments will be even more motivated to pay close attention to regulating the world of crypto. The solutions that blockchain provides for data handling and protection will become attractive to more and more governmental agencies, as their operations would be easier to manage.
Blockchain needs to be paired with other suitable technologies if we want its potential to be fully exploited. And in 2020, it’s the combination of blockchain and artificial intelligence that will hold the spotlight. The AI’s decisional process can be significantly improved and traced more efficiently if blockchain’s problem-solving features are applied.
Improving the Internet of Things
The IoT is undoubtedly an easier way to share data, but there is also the serious matter of being exposed to attacks. With the incorporation of blockchain technology, the security issue is solved, and every item is easily traced and identified. There will be no more misplaced information or difficulty in processing data.
Back to the financial sector, digital assets are enjoying increasing popularity this year, despite the multiple challenges that 2020 has imposed. The use of tokens will turn the financial field more approachable, which is a desirable outcome. With the progress of digital currencies, governmental involvement will have to increase. And at the same time, tokens are evolving, are becoming more advanced to such an extent that mainstream adoption is closer than we think.
When it comes to blockchain, the topic of regulations has always been confusing. Each agency tends to create its own interpretation of regulations, which leads to the general chaos. But improvements are starting to happen, as the IRS has already updated its FAQs section and the Revenue Ruling. Simultaneously, Wyoming made the first step towards legislation that sustains the growing use of cryptocurrency. So, the hope is that updated and improved regulations will soon be issued in other states as well.
The potential of blockchain technology cannot be denied. As more industries discover the significant improvement that adopting blockchain can bring, it will continue to develop and adapt. The financial sector was just the starting point. Another crucial moment was understanding that blockchain technology needs to be paired with others and to be considered only one aspect of problem-solving, and not let it try to stand on its own. From now on, it’s clear that the path of this essential technology is ascending, and the hype was not unjustified.