Blockchain has proven itself to be a force that will only grow over time. In past years we have seen this technology grow exponentially. Its influence on many industries is being felt but Blockchain has not taken off in big way. Although blockchain has been around for a long time, it has left a very sour taste in the form of Bitcoins that hinders its potential growth. There are still many things that remain to be done in order for blockchain to become the more impactful.
In 2020, many industries are trying to adapt this intriguing technology due to its inherent safe nature. These industries range from small startups to banking industries and each industry is trying to make blockchain suitable for themselves. Banking and insurance are two of the many industries that will be revolutionized by blockchain in the near future.
We are seeing and expect to see many trends related to blockchain in 2020 that will make a huge impact on general public.
2020 trends to lookout for
- FIAT currencies can be made exchangeable with crypto ones. This idea might sound farfetched but we are entering a time when blockchain is becoming more and more relevant, and with increased relevance comes more trust. With this increased trust in blockchain technology, it is possible to see these FIAT currencies being exchanged with crypto currencies. The biggest problem with this idea is the instability of crypto currencies but this problem is being solved in the form of stablecoins.
- Stablecoins may become the biggest threat to our conventional currencies. Stablecoins, as the name suggests, are stable but this stability does not mean that stablecoins be centralized. These stablecoins will enjoy all the perk of being a cryptocurrency without having to deal with the instability of value. Normally, cryptocurrencies are not backed by anything and have value solely based on their reputation. As this reputation tumbles, so does the currency and we have a very famous example of Bitcoins to take note of. But stablecoins seem to have real world backings in gold and other currencies which make them a very unique and ambitious trend of blockchain that you could see in the near future.
- Security Tokens are also undergoing some major changes by the hands of blockchain. Tokens are actually assets and carry a real world value but these tokens are not easy to deal with. Managing and keeping record of all the tokens can be a very tiring and cumbersome task but this is not the only problem with the current token system. Current token system is vulnerable to errors and frauds due to its centralized approach. Blockchain seems to offer a more secure and reliable alternative to these tokens in the form of digital tokens based on blockchain technology. This will make the tokens a lot safer and minimize the possibility of frauds. This trend will likely be seen in the very near future.
- Decentralized exchanges of cryptocurrencies may be a trend that was lurking in the background for a long time. Nowadays, cryptocurrency exchange companies use a centralized approach when exchanging these said currencies and this makes the process less efficient. This inefficiency can be resolved by making crypto exchanges decentralized. These exchanges will use the blockchain technology and thus be more efficient and secure. But there are certain problems that are hindering this decentralization, one of which is following the local exchange laws. Modifications to the existing laws will be needed in order for this thing to become a reality and change the whole crypto world with it.
- Bitcoin mining had all the hype in the past years but it proved to be mere hype. A hype train that almost everyone got on board of without fully understanding the risks involved. Many people lost their investments and the cryptocurrency suffered a major blow. At the same time, bitcoin mining also went down the path of decline and there seems to be no way up in the near future. Downfall of bitcoin mining will be a sad but inevitable trend to follow in 2020.
- Custody is a major problem that investors face when investing in cryptocurrencies. These currencies have not been brought under custody of any big custodial firm and this stops big companies from going full in with these currencies. But this may be about to change due to increase of interest in blockchain. As blockchain gets more eyes, more and more people will start taking cryptocurrencies seriously again and this will make the big custodial firms take custody of said currencies. This will make it easier and more valuable to invest in cryptocurrencies in the near future.
Be on a lookout for this major trend in blockchain industry in the near future.
This list is by no means exhaustive and there are many trends that will show up in the future. Blockchain technology might be the next big thing in the future as it has the potential to disrupt and alter virtually any industry. We are seeing these trends pop up in our daily lives and these trends will shape how the major industries of the world operate.