2020 brings us the start of a new decade, and with it comes the gradual maturation of blockchain technology, bringing it down from the stratosphere to tangible impact on real-world problems. In this article we are going to answer the question on how blockchain works, to look at the various applications of blockchain in various industries, and finally, to analyze the predicted blockchain trends for 2020.
Why is blockchain trending?
Blockchain is one of the most promising technology in 2020. Basically, people are attracted to new things, and that could explain the popularity of the blockchain. Blockchain is like a trending wave and a revolutionary platform that will change things. Everything is peer-based with no centralized system to hack into. This security offered by the blockchain is attractive, and the more people realize how attractive it is, the more blockchain will trend.
How does blockchain technology work?
Blockchain works by linking new transactions to transactions that have already occurred. In most cases in order to maximize security each transaction is time-stamped. The whole setup is linked together using cryptography. No central system is required, and all the details of transaction can be stored in all the nodes involved in the blockchain.
What is trending in blockchain right now?
Here is a summary of some things currently trending in the sphere of blockchain:
There has been a greater emphasis on security and privacy. Many platforms that use blockchain have attempted to improve security. Data breaches are a prevalent thing. They happen all the time. It wouldn’t be wrong to say that our confidential information is quite vulnerable. And that goes for credit cards numbers, location tracking, activities and passwords of various profiles, and so on. Blockchain infrastructure simply eliminates the need for keeping and storing your personal data, that’s why it is completely safe.
There has been increased use of the blockchain in the software as a service. Some of the uses of blockchain are so tiny that it is not feasible to design an entire blockchain system for just a specific use. So, a single blockchain program can be made to serve multiple purposes.
The blockchain sector has undergone massive growth since it was first introduced. Though 2019 was a slow year by blockchain’s normal stellar standards, the big picture indicates that blockchain is still on the up and up.
The predicted trends of blockchain in 2020
There will be an increased level of synergy between blockchain and the Internet of Things. All the devices and gadgets connected to the Internet of Things will then be able to better interact without the need for human interference when using the blockchain. Without having to worry about the veracity of user data, it will be easy to be creative in order to build a secure infrastructure meant for autonomous collaboration.
There will be an increased degree of relationship between various blockchain platforms. These platforms may have different defining characteristics, such as different block times, but by next year it might be possible to make transfers directly from Ethereum to Litecoin.
More financial institutions are going to start taking note of cryptocurrency. This trend has already started with Bitcoin being listed on the financial market, but it is poised to get larger. Currently, Bitcoin has a market capitalization of 131.26 billion dollars!
There will be an increased use of the Blockchains in the sectors apart from finance. Big organizations and hospitals among others may come to see how valuable the blockchain is in organizing their records and keeping them reliable is. In the USA about half of all clinical trials are not recorded and about 40% of Healthcare records are full of errors.
The world has reached an inflection point that will change the way we do business. The reason is Blockchain! Even the financial institutions have acknowledged Blockchain’s disruptiveness. Predictions indicate that by 2024, Blockchain will be reaching the critical mass.
Blockchain will be used in environmental sustainability programs. The amount of energy and water wasted per household or building can be collected and the records can be integrated using the blockchain. These records could come in handy in the fight against waste.
In addition to this, other forms of waste can be minimized through proper record keeping. For example, proper record keeping will minimize food spoilage among other things which will in turn minimize the amount of energy used and also conserve our environment.
Blockchain in cryptocurrency
Currently, cryptocurrency is remaining the major application of the blockchain in everyday use. Bitcoin is the most popular one, but there is also Litecoin, Ethereum and 3000+ other altcoins. Blockchain enables a currency that is out of government control. The value of the currency is based on the amount of demand for it. This system is well-favored in countries where the central banking system appears to have failed, or in countries undergoing fiscal crises. Cryptocurrency provides such countries with a more or less stable means of exchange.
However, it is not all rosy as some countries, such as China, frown upon the use of virtual money to purchase real goods. Countries like Bolivia have banned Bitcoin outright, making transactions based on it illegal. It is hoped that as time marches on, these nations will come on to partake in what some experts are calling the Fourth Industrial Revolution.
This technology is aspiring to change the world. The next decade promises to be a decade of exponential growth and multifaceted applications for blockchain. Here we stand at the turn of the ages watching history being made. Technorely has many projects connected with blockchain technology. You can find out more information about our projects such as Lumeos, Korporatio and Smartlands.