4 upcoming blockchain trends in 2021
Blockchain was first introduced in 2008 when Satoshi Nakamoto’s pseudonym introduced a white paper on the blockchain. Expanding from there, in 2009, blockchain was first used by the general public as a means of transaction of cryptocurrency. In 2021, it is expected that many industries and companies beyond cryptocurrencies will use blockchain for several purposes.
Because of the pandemic, and even before it, companies were using blockchain to provide various services, including safe online transactions, easy transportation of goods, and the production of healthy and safer food for us. It means that blockchain can be helpful in every process which involves the transaction of any goods: that’s why companies related to financial transactions use it most. Blockchain can also track any data that is being transferred from one part to another, which means that blockchain can become helpful in trading, supply chain, logistics, and provenance.
Following are the four upcoming blockchain trends to look for in 2021:
The supply chain industry is facing many issues, especially in logistics and transportation of goods. Optimizing the supply chain industry through blockchain will provide cost-effective methods of transferring goods from one place to another. Still, with this digital blockchain, there will be proper tracking of each good being transferred. All the data will be on a trusted database.
Blockchains can properly track long-distance shipment, a transaction with several different parties, data and documents, and mutual trusts. This will allow the supply chain industry to store and record a large volume of data accessed by every target group. The central ledger stores and handle all transactions. Integrating the supply chain industry with blockchain technology is one of the trends in this year. The reason for that is that customer’s demand for transparency is increasing, and the safe supply of goods worldwide is becoming critical. Both of these demands can be met through blockchain technology.
Central Bank Digital Currencies (CBDC)
In 2020, digital central banking was already one of the topics to talk about. China is trying to take a leadership role in this; however, the UK and other European countries try to avoid any inconveniences. China has already established an e-yuan that the government is controlling. This technology is being used in CBDC as the best-suited ledger technology. Central banks will control the issuance of CBDC while it will be validated by the network and central bank jointly. People will be allowed to perform transactions even when the network is down. The blockchain will perform its functionality at this point, recording all the transactions while ensuring the network’s security. Central Bank Digital Currencies are among the top 4 blockchain trends to look for this year.
As a service business model is already part of many businesses such as the internet of things, cloud computing, and artificial intelligence. The next as-a-service that companies like Microsoft, Amazon, and IBM are likely to adopt is BaaS. These companies are offering tools to use the technology without making an up-front investment in it. With BaaS, users can launch their products on blockchain networks. During the last year, many start-up businesses used BaaS. These digital products with the use of BaaS can be among the uprising blockchain trends of 2021.
Non-fungible-token are very popular these days. These are like digital artworks that are on blockchain, and they have values because of their uniqueness. These are also known as digital collectibles, which don’t have any other copies and are unique. If bitcoin is verified by blockchain as a legitimate currency, then NFT is also verified by blockchain as digital artwork. NFT is creating a lot of opportunities for several people in business to make a lot of money. For instance, a painting by musician Grimes was sold as an NFT for USD 6.6 million. Also, NBA sold its baseball video clips for USD 230 million.
Moreover, the first tweet of Jack Dorsey was sold for USD 2.9 million. NFTs are considered as digital collectible items and other digital goods associated with video games. But in 2021, NFTs can include real-world things like event tickets, brand licensing, and many other real-world tokens. This will be one of the growing blockchain trends of 2021.
Blockchain has already been part of many industries, but apart from cryptocurrency, various industries can be used to improve services respectively. This year, blockchain can be a part of the supply chain industry which will enhance the supply of goods across the world with more transparency and security. Moreover, central bank digital currencies, BaaS, and NFTs can use blockchain to improve their services. This will make transactions in several sectors a lot easier and secure.