We will 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 be for blockchain technology in the years to come?
1 Global blockchain market size will
exponentially grow
What was not forecasted is that
blockchain technology exploded in popularity this year. Businesses from a
multitude of industries showed a growing interest to adopt this technology for enhancing
their business processes. The COVID-19 pandemic accelerated the digital
transformation drive in many areas, especially via the use of blockchain or
distributed ledger technology.
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
We will see a reorientation of the
various blockchain projects. Experts predict that 90% of blockchain projects
will require replacement within a year.
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. Greater breakthroughs with blockchain in the finance industry
Amongst all the industries affected by
the COVID pandemic, the finance sector is one area that has been hit
particularly hard. Central banks all over the world have been slashing interest
rates to keep their respective economies afloat.
This has resulted in falling profits
for banks and ever-tightening margins. In some countries, central monetary
authorities have introduced negative interest rates as a means of encouraging
spending.
With unemployment on the rise and
increased loan defaults, banks have been forced to adapt to the times.
Contactless transactions and redesigned financial services are set to be the
order of the day.
With fintech and blockchain
technology, banks will be able to streamline their operations to reduce costs
and modernize their operations. For example, blockchain technology allows
financial institutions to automate data verification thus eliminating human
error and improving response times. All of which contributes to a significantly
improved customer experience.
4. Corporate need to accelerate their digital
transformation
Digital transformation is no longer a
choice for businesses - it is essential to survival. Due to the increased
strain that the COVID-19 pandemic put on day-to-day business, there is a dire
need for corporate to accelerate their digital transformation process to emerge
stronger than before. Blockchain technology is very likely to make the most
transformative and dramatic changes in the way businesses function, during the
coming years. Many industries are therefore intensively looking at blockchain
as a helpful tool to become all the more digital.
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.” According to Gartner more than 40% of the surveyed corporate has at
least one blockchain pilot running. They predict that 30% of global projects
will make it into production, partly due to the impact of the COVID-19
pandemic. The majority of networks that transition from pilot to production
will thereby run on private enterprise blockchain platforms.
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