2020 has historically been a very tough year for everyone. Many events took place due to the COVID-19 Pandemic and this was least expected by people and businesses the world over. The Pandemic also affected several blockchain trends of 2020 that specialists in the field anticipated. However, like it did not trigger trends that were expected in 2020, it paved and intensified the way for new trends that moved into 2021.
The key question here is, what are these top trends, and how will they affect the cryptocurrency and blockchain landscape in 2021 and the years after that?
Look out for the following top blockchain trends in 2021
1. The size of the blockchain market across the world will exponentially grow
An unexpected forecast in 2020 was the exponential growth of blockchain technology. Businesses from almost all industries expressed their readiness and interest to embrace blockchain technology for boosting their organizational processes.
The advent of the coronavirus Pandemic only accelerated this growth due to the sudden need for digital transformation in several areas, especially with a distributed ledger or blockchain technology.
Due to the above, it has been anticipated that the size of the blockchain market across the world is expected to grow from $3.0 billion (2020) to about $39.7 billion by the year 2025. This is expected to occur at a Compound Annual Growth Rate of 67.3 percent in the 2020-2025 time periods.
Trusted sources in blockchain technology claim that expectations in this arena are positive in 2021. It has been estimated that by next year, at least 25% of businesses under Forbes Global 2000 will embrace blockchain technology as their foundation for digital trust at an extensive scale.
2. The Coronavirus Pandemic will accelerate this blockchain transition
Everyone will witness a reorientation of diverse blockchain projects. Specialists in the field have predicted that 90 percent of these projects will need replacement within one year. This is because most businesses are ignoring major features like decentralized consensus, tokenization, and smart contracts.
Besides the above, the Pandemic has given birth to more pragmatic and realistic approaches to blockchain initiatives that concentrate on a daily business to continue their path for growth. Blockchain projects with precise benefits are expected to do the above in 2021 and the years beyond a much quicker pace. In addition, there has been a surge in the number of organizations interested in participating in networks that help address some of the issues about supply chain management that the Pandemic has caused.
3. Strategic projects (long-term) will be on hold
Specialists from the eminent name in database consulting, administration, and management, remotedba state that the COVID-19 Pandemic sparked off a lot of uncertainty and volatility for businesses that are associated with DTL projects in the long term for now.
The above long-term projects especially need changes to regulations and structure. This is why they are functioning on an extended timetable at present. Those budgets that are entirely experimental and those revolving around research and development operating in isolation from the key business are now difficult to obtain and have been reduced in 2020.
In turn, this will trigger more and more projects of a like nature to be placed on hold as well in 2021.
4. Digital transformation needs to be accelerated by companies
Gone are those days when the subject of digital transformation was a choice for companies. Today, it is essential for their survival. Due to the intense strain that the COVID-19 Pandemic placed on businesses worldwide, businesses have an increased need to accelerate the process of digital transformation to emerge stronger than in the past.
The technology of blockchain will aid in this transformation and change. It will help businesses to survive and function better with their daily operations in the forthcoming years. Some companies and industries are looking forward to this blockchain technology as it is an indispensable tool to make them digital better.
5. 30% of projects globally will attain production
There is a forecast that more projects dealing with blockchain technology will move into production. The number does not reveal the enhanced realistic approach to global projects and the soaring maturity of the technology. Still, it also deals with the acceleration and project initiation that has been induced by the Pandemic that will bring measured advantage within a short time.
According to a survey report by Gartner, over 40 percent of businesses today in the world have at least one pilot project on blockchain technology running. They predict that about 30 percent of global projects will shift into the production stage due to the impact of the coronavirus pandemic. Most of the networks that will move into the pilot to the production stage will operate on blockchain platforms operated by private enterprises.
6. Private Blockchains will dominate the market
There is another trend that the world will observe, which the dominance of private blockchains in the market is. They will be the key contributors to the growth of the blockchain market and are assumed to keep the largest market size this year. The blockchain solutions for enterprises will be customized to the needs of the organization.
The private blockchains will offer increased opportunities to businesses to utilize blockchain technology for their day-to-day business operations. They offer increased transparency, reliability, and privacy. However, when it comes to security, private keys are allowed only to authorize individuals in the company.
In conclusion, experts in the blockchain technology market state that if you look at 2021 from a regional perspective, it is seen that China is the leader of the blockchain game across the world. It will head the whole of 2021 and the years beyond.
Blockchain technology is taking the nation to a level that is far beyond the reach of other market players in the world today. If you compare the country to regions or nations like Europe contemplating launching their signature digital currency, China is nearly ready to release their Crypto Yuan soon.
Pete Campbell is a social media manager who has worked as a database administrator in the IT industry. His research has helped thousands of users and brands with marketing campaigns too. He loves to travel, write and play baseball