One of the most talked-about trends for the last few years, Blockchain has emerged as a revolutionary innovation. From financial institutes to healthcare and logistics firms, blockchain had disrupted almost every industry. Many enterprises are showing interest in blockchain technology. With a focus on transparent supply chains, crypto assets, central bank money, and decentralized exchanges, let's explore the trends that will take center stage in 2021.
Optimizing supply chains is self-evident from a business perspective. An optimized supply chain not only provides a cost-optimized shipment of raw materials but digitization also helps to establish transparency in all processes. It helps to create a secured and distributed database. As a distributed ledger, the technology is accommodated to register and store large volumes of data.
DeFi or Decentralized Finance was a part of the top blockchain trends in 2020 and this trajectory is presumed to last in 2021 as well. DeFi is a blockchain-based form of investment that does not rely on central financial mediators like brokerages or banks. DeFi uses smart contracts on blockchains and the most common is Ethereum.
One of the best blockchain trends, Federated Blockchain is an upgraded form of the basic blockchain model. The federated blockchain functions under various authorities instead of following a single trusted node. Federated blockchain provides a more customizable outlook when compared to a private blockchain. Conceptually, a federated blockchain is similar to a private blockchain. While private blockchain is controlled by one organization, federated blockchain can be controlled by multiple authorities.
NFT, Non-Fungible Tokens, are gaining quick popularity across blockchain and digital asset exchange platforms. NFTs are unique cryptographic tokens that are non-exchangeable and represent a unique value. They are a singular asset which indicates that they cannot be replicated.
When systems act among themselves without constraints, it is referred to as interoperability. This assures the users that systems can be switched, regardless of the manufacturer. Blockchain interoperability is at the top of the list of technology trends of 2021. Several blockchains are further developments of the Bitcoin Blockchain but they show significant differences that prevent seamless working. However, interoperability will make things easier as they facilitate seamless data transfer and exchange and can be embedded into existing systems easily.
Some other trends of 2021:
The future of blockchain technology is changing rapidly. Predicting which trends will take the forefront is a complicated task. However, it is for sure that blockchain technology is set to transform various industries in several ways.