Will Blockchain Technology Rule The World In 2020?
2020 is not that far away and technologies are growing at such a speed, that New Year’s technology trends must be thought as soon as possible. Especially when it comes to blockchain, the potential outcomes of which are not completely disclosed yet.
The blockchain technology made its first advent about 10 years back, in the year 2009. From that point, the world has seen an exponential change in this amazing technology. Whether it may be a retail sector or Healthcare and Medicine, blockchain technology has positively impacted different industry verticals, thus making blockchain trends the most searched keyword.
Blockchain-based applications have a great future scope. Let’s have a look at emerging blockchain technology trends in 2020.
Top Blockchain Technology Trends in 2020
2019 acquired a great deal of advancement in blockchain technology. It will surely take various businesses as well as industries to the next level.
Here are the emerging blockchain technology trends.
1. 2020 would be the year of Federated Blockchain
The concept Federated Blockchain can be considered as one of a kind latest trend in the industry. It is simply an updated form of the fundamental blockchain model, which makes it additionally perfect for some specific use cases.
According to experts, the use of federated blockchain will rise up as it provides private blockchain and a more customizable perspective. Basically, federated blockchains are very like private blockchains, with a few additional features.
For example, in this type of blockchain, rather than one organization, various authorities can control the pre-selected nodes of blockchain. These selected group of nodes will validate the block so the transactions can take place.
Key Features of Federated Blockchain:
• Instead of following one secure highly trusted node, it operates under various authorities.
• Different authority nodes are selected from various organizations & those are connected in the blockchain network.
• The nodes which are selected will be responsible for carrying out network activities as well as validating a block.
Use Cases Of Federated Blockchain: • Financial Services
• Supply Chain Management
• Insurance Claims
• Organizational Records Security
• Multiparty Aggression
2. Stable Coins to Dominate the Crypto Ecosystem
Basically, cryptocurrency is the fundamental product of blockchain technology and it is volatile in nature. At this point in time, stables coins are in its initial stage and it is been forecasted that stable coins will achieve their all high time in 2020, making them the second most emerging trend in the industry.
Advantages of stable coins:
• Security from currency crashes: As the name states, stable coins are stable and don't fluctuate that frequently. It implies that the user doesn't need to stress over currency crashes always. It additionally enables users to invest more in cryptocurrencies.
• Fast Remittances: The procedure for sending remittances abroad is currently simplified with the help of stable coins. Remittances and banking with stable coins make transactions very faster in some hours as blockchain operated independently without a central authority.
• Regular Currency: Stable coins can be utilized consistently as a regular currency like Fiat cash, alongside legal backups. For example, you can utilize them like some other digital cash for making online purchases.
• Lower Fees: Credit card processing charges across utmost Mastercard organizations, like, Visa, MasterCard, and AmEx costs around 2 percent for each transaction. Therefore, many small businesses charge clients more for Mastercard purchases, deny the use of specific cards with higher expenses, or even take cash only. These costs of transactions can be avoided by using stable coins, offering some benefits for both businesses and clients.
3. Amazon and Microsoft Utilizing Blockchain as a Service (BaaS)
BaaS stands for Blockchain As A Service, another trend in the blockchain. It is incorporated with various new companies and enterprises.
BaaS works in the same way as Software As A Service (SaaS) model. It allows users to build up their blockchain applications through cloud-based solutions. These digital products might be smart contracts, applications, or different services.
BaaS provides a cloud-based service provider to set up blockchain infrastructure for a fee. Once created, the provider keeps on taking care of the complex back-end activities for the client
Some of the organizations building up a blockchain that provide BaaS service are Microsoft and Amazon, hence forming the future of blockchain-based applications.
4. Blockchain is on the verge to transform social networking
It shouldn't be surprising for us that social media has become an integral part of our day by day lives. Actually, as per statistics, it is evaluated that there are 3.48 billion social media users around the world in 2019.
The incorporation of blockchain in social media will be able to resolve the issues related to online scams regarding crowdfunding, counterfeit news, privacy violation, data security. Therefore blockchain-based social media networks are another emerging trend.
With the use of blockchain, users will get the opportunity to store all the information more safely. Blockchain likewise guarantees that the power of content lies in the hands of the individuals who made it, rather than the platform owners. This makes the user feel safe as they can control the way their information is viewed & by whom.
5. Ricardian Contracts
A Ricardian Contract is a lawful agreement that was presented first in 1995 by a notable software engineer, Ian Grigg. The idea is presently part of the blockchain also.
What makes it exceptional is – it is cryptographically signed and verified. Even though it is in digital form, it is accessible in a human-readable text that’s easy to understand by people (not just lawyers). It is a legal agreement that is readable by computer programs & humans simultaneously.
It has two sections. First, it is an easy-to-read legal agreement between at least two parties. Your lawyer can simply understand it, and even you can understand it and comprehend the center terms of the agreement. Second, it is a machine-readable agreement too. With blockchain, these agreements can now effectively hashed, signed, and can be stored on the blockchain.
In short, Ricardian Contracts combine legal agreements with technology, blockchain technology to be more specific. They bind the parties into a lawful agreement before the execution of the activities on the blockchain network.
Advantages of Ricardian Contract
• Costs: As Ricardian contracts are legally binding agreements, so whenever a dispute arises that can be decided in the court. This is not possible in the case of a smart contract. It can save effort, costs, and time you may have to invest.
• Ricardian contracts are extremely secure: When human-readable agreement converted into a machine-readable agreement, it is hashed. This hash is stored on blockchain & can be utilized to uniquely identify different parts of the document. Thus, it becomes impossible to change the content of the original document without knowing other parties.
• Acts like Smart Contracts: They not just characterize the intentions of the two parties under lawful terms, can also execute the instructions
6. Hybrid Blockchains
Hybrid blockchain is the next future scope of blockchain technology. It can be defined as that blockchain that makes the use of a suitable part of public & private blockchain solutions.
Most importantly, hybrid blockchain is completely customized, like there are a few authorities for whom the procedures are expressed as private, while for the others, they stay public.
7. Content Streaming will be More Secure With Blockchain
One of the emerging trends of blockchain technology is Content Streaming which will be highly popular in upcoming years. A media service provider like Netflix, Hulu or HBO can incorporate blockchain in order to secure the user data.
According to the above-emerging blockchain technology trends, blockchain will have a remarkable time in different industries in the year 2020. There's no doubt that the blockchain technology is going to positively affect a wide range of industry verticals unexpectedly.