The year 2020 has almost come to an end. It has been a historically tough year for many. Several events happened that were not included nor expected in 2020 blockchain trends. Especially, the COVID-19 pandemic not only intensified trends that were already underway but also generated new trends.
Let us look
at the top trends we may expect for the blockchain and cryptocurrency landscape
to watch out for 2021 and beyond? So, how will the landscape look like for
blockchain technology in the years to come?
1 Global blockchain market size will
exponentially grow
As a result the global blockchain market size is expected to expand from USD 3.0 billion in 2020 to USD 39.7 billion by 2025, at an effective Compound Annual Growth Rate (CAGR) of 67.3% during 2020–2025.
2. Covid-19 will further accelerate
blockchain transition
That is
because most are ignoring key features such as tokenization, smart contracts,
and decentralized consensus. Next to that, the pandemic has caused more
realistic and pragmatic approaches to blockchain initiatives specifically
focused on the day-to-day business “to continue their growth path”. Blockchain
projects with clear benefits are expected to do that next year at an even faster
pace. There has also been an uptick in the number of companies interested in
participating in networks that specifically help to address some of the supply
chain issues that the pandemic has put forward.
3. Long-term strategic projects will
be put on hold
Volatility
and uncertainty sparked by COVID-19 have led many corporate to pull back from
some of their more long-term DLT-related projects for the time being. These
long-term strategic projects, in particular those requiring changes to the market
structure or regulatory changes, are mostly working to extend timetables now.
Budgets for purely experimental and R&D projects – run in isolation from
the business- are becoming harder to obtain and have been cut this year. And,
this will cause an even larger number of these projects to be put on hold.
4. Transportation of Covid-19 vaccines
The
development of Covid-19 vaccines was hopefully the first step towards defeating
the virus, but governments around the world are facing a huge task in
distributing it to their populations. With limited supply and the need to be
kept in refrigerated conditions, this is a great example of a problem for which
blockchain provides a solution.
Over the
next year, we are likely to see blockchain used to track vaccines from the
point of manufacture to the patient. At every step of the journey, it can be
used to create a permanent and non-falsifiable record of where each batch was
at any given time. To do this at the speed required for vaccination to be
effective across the entire world means processes must be developed for demand
forecasting, supply chain management, and authentication.
5. Globally,
30% of projects will make it into production
It is
forecasted that a growing number of blockchain-based projects will switch to
the production stage. This number doesn’t just reflect the more realistic
approach to projects and the increasing maturity of the technology but also the
pandemic-induced acceleration and initiation of projects that may bring measurable
benefit within a short timescale.
Societal
benefits are perhaps the ultimate crown jewels for decentralized public
Blockchains but one thing we can be sure of- these benefits won’t make it into
the top 2021 trends. Governments are slow to change and social media networks’
business models don’t currently support authenticating news sources. Let’s hope
these use cases start materializing in 2022 and the full promise of
decentralized public Blockchains is achieved.
Email at:- sales@blockchaindevelopment.io
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