Considering the advantages of blockchain solutions, it’s safe to say that this innovative technology is the future. While the main reason, for the time being, behind the growth of blockchain, is financial firms, the active adoption of blockchain technology in the government organizations and the real sector is also incredible. Moreover, the COVID-19 pandemic significantly intensified trends that were already underway and generated many new trends that are the most profitable and essential to maintain. Here are some of the biggest Blockchain trends in 2021 that have the greatest potential to change the blockchain and cryptocurrency landscape in the future.
Blockchain Trends in 2021 – What Will Be the Future of Blockchain Solutions?
1. Growth of Global Blockchain Market Size
Blockchain solutions became increasingly popular in 2020. Businesses and enterprises for various sectors turned to Blockchain development services to enhance their business operations. The global pandemic expedited the digital transformation drive in various fields, especially with the use of distributed ledger technology or blockchain.
Due to this, the global blockchain market size is anticipated to increase from USD 3.0 billion (in 2020) to USD 39.7 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 67.3%.
2. Acceleration of Blockchain Transitions Amidst COVID-19
Various blockchain projects are supposed to undergo reorientation now. Experts have projected that about 90% of blockchain projects will have to be replaced within a year as most of these projects are ignoring core features like smart contracts, tokenization, and decentralized consensus. Besides, the COVID-19 pandemic has led to more genuine and pragmatic approaches to blockchain initiatives that are more focused on the day-to-day business to continue their evolving path.
More and more companies will be interested in joining networks that help to resolve some of the supply chain issues put forth by the pandemic.
3. Digital Transformation Has Become the Need of the Hour
Digital transformation no longer is seen as an option, it has become the need of the hour for businesses. As the day-to-day businesses have suffered a lot during the COVID-19 pandemic, it is imperative for businesses to adopt digital transformation solutions to survive during these times of uncertainties. The blockchain technology is soon going to bring revolutionary changes in the way businesses to function in the upcoming years. Many industries are switching to blockchain development services to become digitally empowered.
4. 30% of Blockchain Projects Globally Will Be Switched to Development Phase
It is predicted that 30% of blockchain-based projects will make it into production, maybe because of the impact of the COVID-19 pandemic. According to Gartner, over 40% of the surveyed business organizations have at least one blockchain pilot running. Most of the networks switching from pilot to production will now run on private or permissioned enterprise blockchain systems.
5. Permissioned Blockchains will Remain Dominant
Private or permissioned blockchain solutions are more likely to contribute to the growth of the blockchain market size and are anticipated to remain the largest market size in 2021. Enterprise blockchain solutions are tailored to meet the corporate’s business needs. Private blockchains bring more opportunities to corporates with regards to leveraging the blockchain technology for B2B use cases. This ensures greater efficiency, transparency, reliability, and security. Security of a private blockchain is ensured through private keys that are known only to authorized users in the organization.
6. China Will Make Rapid Progress
China has emerged as a leader in the global blockchain game and will continue to be a leader in 2021 as well. China came up with a ‘new infrastructure’ national initiative, a Blockchain-Based Service Network, backed by the state, that is intended to make blockchain a core element of the country’s digital infrastructure. China is further aiming to provide global public infrastructure using this Network.
Moreover, while other nations or regions like Europe are still planning to launch their own digital currency, China has already done it and is almost ready to issue its own digital currency, Crypto yuan.
7. Rising Popularity of Decentralized Finance (DeFi) Services
The acceptance of tokenization, which is storing assets digitally on blockchain and further on DeFi, is another hottest blockchain in 2021. DeFi depicts how blockchain can be beneficial for financial use cases, which is still a missing element for enterprise blockchain offerings. DeFi also shows the effective smart contracts process for financial services.
The year 2020 has already experienced a firm rise in Decentralized Finance services. Based on cryptocurrency, the total worth of full-time DeFI services experienced significant growth and even crossed USD 10 billion and it continues to grow in 2021 and beyond.
8. Cryptocurrencies May Achieve a New Height
2020 has been a great year for all crypto markets and in 2021, the expectations are that it will be even a better year for Bitcoin and other cryptocurrencies. Cryptos have become more popular during the COVID-19 pandemic as many investors look for a new safe place for assets. Amidst the uncertainties in the market and remaining unaffected by government policies because of its decentralized nature, Bitcoin has emerged as one of the powerful players in the digital currency landscape by proving itself to be the most valuable form of digital gold.
Since social distancing and cashless transactions are crucial for controlling the spread of coronavirus, the use of cryptocurrencies is increasingly becoming popular amongst people and investors.
A mobile application development company specializing in blockchain development solutions and services can also help you build blockchain digital wallets for secure transactions of cryptocurrencies.
Wrapping Up
So, these are some of the latest blockchain trends in 2021, however, this list is not limited to the above-mentioned ones. There are many other trends like the number of CBDC projects that will increase, the arrival of Zero-Knowledge Proof (ZKP), DLT-offerings by non-traditional financial institutions, and many others. If you’re looking to invest in blockchain development services, you may approach a professional web or mobile application development company to build blockchain applications as per your requirements.
