Blockchain Technology is making headlines for so many reasons but other than cryptocurrency this technology has been used in improving supply chain management, voting, food safety, data security, and much more. The top companies like Amazon, IBM, and Walmart are exploring new possibilities to capitalize on this technology.
Let’s discuss the top 5 trends of blockchain technology that have been gaining attention this year so far. This article will help you understand this technology and its potential in the future world.
The below mentioned top trends of blockchain technology in 2020 are as follows:
1. Decentralized Finance (DeFi)
Defi has become the spotlight and matter of curiosity for all blockchain enthusiasts. You can say this is one of the most exciting trends of all. Defi can revolutionize the whole world of the economy. The key parts of finance like insurance, loans, and exchanges are the targets of decentralized finance systems.
In the traditional way of banking, we usually go to the bank to lend money. Similarly, for insurance, you go to the insurance company. The same goes for centralized exchange platforms. But Defi is making huge paradigm shifts with such networks that have no central point of control or real owner. In the Defi network, you need to connect with peers through the protocol. No bank assistance is required now. Here, the protocol means the agreement between parties that connect lenders with borrowers with consent. You can understand this as borrowing money from a friend but this exchange of money can be scaled to a global level and managed by blockchain technology.
If you dig deeper, then older ways of currency exchanges can be great examples that will be hugely impacted by Defi. With the help of DeFi, now crypto users can trade & exchange currencies without setting up a new account on a traditional exchange & verifying your identity. Although, this technology is still in the development phase and not ready for commercial use at least for now. But we can expect it will grow faster in the upcoming years.
Among other popular cryptocurrencies, Stablecoins have secured a special place in cryptocurrency conversation. It is considered one of the most respectable faces of crypto. The best thing about Stablecoins is as its name suggests the least price volatile cryptocurrency. You can say Stablecoins offer more feasible and frictionless digital payment than Bitcoin. From an investor’s perspective, they always go with stable cryptocurrencies because rapid price fluctuations lead to uncertainty.
Some leading crypto news agencies also reported that Tether-a popular Stablecoin is the world’s most used cryptocurrency. But not all glitters are gold. Some fraudsters targeted customers to steal Tether and suddenly the crypto users were forced to rethink their faith in the world’s most popular Stablecoin.
3. Blockchain as a Service
Blockchain as a service is the new trend in the tech industry and its demand is continuously increasing. Blockchain as a service is nothing but a cloud-based service that permits users to build their digital products by using blockchain technology. Some of the popular blockchain as a service are Smart Contracts, Dapps, etc.
Now, more and more enterprises, companies & financial institutions are building their own blockchain products. The best example of such a company is Amazon. Their blockchain platform lets users build scalable blockchain networks using frameworks like Ethereum & Hyperledger. These types of services are created to allow easy access for new businesses into advanced technology. One thing is for sure, this trend will show no change in its popularity and growing continually.
4. Blockchain with Internet of Things
Most of us are familiar with the Internet of Things technology and its impact in the upcoming future. But now imagine if we made a blockchain network with the help of the Internet of Things. Blockchain will help the devices for easy communication that are not connected with the same software. This technology has the potential to create a large interconnected network of things across the world. With billions of devices connected to this network, the risk of device hacking has been significantly increased. But blockchain technology gives a new hope to the IoT networks. Because blockchain is a public network and everyone can participate in the network of nodes of the blockchain network with full safety. Users can control their transactions through their private keys.
Also, it is a decentralized network. No one can control this network and eventually makes it more secure. Additionally, previous networks in the records cannot be changed. These are some important reasons why some leading IoT companies are using this technology for their business solutions.
5. Blockchain Integration with AI
We, humans, are fascinated with Artificial Intelligence the day since it was launched. Both technologies are known for their promising benefits. But integrating blockchain with Artificial Intelligence will take digital potential to the next level. AI can be used to make blockchain more secure, scalable, and more user-friendly. After this collaboration, it can be extremely helpful for companies to make more accurate predictions. It can also be useful to reduce extra production costs, streamline supply chains.
With increasing advancements of artificial intelligence & blockchain, the market is showing positive signals, and highly likely it will continue to see an increase in his type of innovation throughout 2020. Some of the real-world implementations of both these technologies products are Smart Computing Power, Data Monetization and Data Protection, etc.
You must get a basic idea about these top trends of blockchain in 2020. Every coin has two sides and the same goes for blockchain technology. But considering its positive sides, this technology has shown remarkable potential. If you are also interested in integrating blockchain technology into your business, choose the best blockchain development company to transform your business into a profitable organization.