From Interoperability to stable coins, learn about the latest blockchain trends that will rock in 2020.
The blockchain technology first made its official appearance almost a decade ago, in the year 2009. Since then, the world has seen an exponential transformation in this remarkable technology. From the retail sector to the field of Healthcare and Medicine, blockchain technology has made its way into various industry verticals, thus making blockchain trends the most searched keyword.
Clearly, the future has a lot of scope for blockchain-based applications. Let’s take a look at the top emerging blockchain development trends in 2020, that will shape the future of blockchain.
Top Blockchain Trends of 2020
The advent of 2019 brought a lot of excitement in the latest blockchain technology. It is sure to take mobile app transactions and business functioning to newer and unimaginable heights. Here are the top emerging trends in blockchain technology.
1. An expected Rise of Federated Blockchain
The term Federated Blockchain can be referred to as one of the best blockchain latest trends in the industry. It is merely an upgraded form of the basic blockchain model, which makes it more ideal for many specific use cases.
As per experts, there will be a rise in the usage of federated blockchain as it provides private blockchain, a more customizable outlook. For most of the part, federated blockchains are quite similar to private blockchains, with a few added features.
For instance, in this type of blockchain, instead of one organization, multiple authorities can control the pre-selected nodes of blockchain. Now, this selected group of various nodes will validate the block so that the transactions can be processed further.
Key Features Of Federated Blockchain:
- The federated blockchain operates under various authorities instead of following a single secure and highly trusted node.
- Here, the authority nodes are selected previously from different organizations that are connected to this blockchain network.
- The group that is selected will be responsible for maintaining the network and validating the block as well.
- In this network, only the group holds access to inner-restricted areas.
Use Cases Of Federated Blockchain:
- Financial Services
- SCM, i.e., Supply Chain Management
- Insurance Claims
- Organizational Records Security
- Multiparty Aggression
2. Stable Coins to Dominate the Crypto Space
Cryptocurrencies are basically a side product of blockchain technology and are volatile in nature. As of now, stable coins are in their initial phase and it is predicted that 2019 will be the year when blockchain stable coins will achieve their all-time high, thus making them the second most looked forward emerging tech trends in the industry.
Blockchain Future Applications of Stable Coins
- Additional layers of security from currency crashes: As the name suggests, stable coins are steady and don’t fluctuate that often. It means the user doesn’t have to worry about currency crashes constantly. It also allows users to invest in more cryptocurrencies.
- Fast Remittances and Affordable: The process of sending remittances overseas is now simplified with the help of stable coins. They are also swift and hold the same value as flat coins.
- Streamline Recurring and P2P payments: Making peer-to-peer (P2P) payments is much easier with stable coins. Users can even use them on smart contracts to conduct automated payments.
- More Stable Currency Exchanges: Stable coins can further contribute to stabilizing the market while improving the overall situation of the cryptocurrency market. This will also eliminate additional risks and unnecessary regulations.
- Regular Currency: Stable coins currency can be used regularly as a common currency like Fiat money, along with legal backups. For example, you can use them like any other digital currency for making online purchases.
Limitations of Stable Coins
- Unstable: The crypto-backed or commodity-backed stable coins can become unstable sometimes due to sudden crashes of the market. This might turn into a huge problem because experts are still working on how to back up stable coins if the value of their assets drops in the real world.
- Trust Issues: Because of the centralized nature of stable coins, users cannot completely trust their system as they still need to prove their applications in the real world.
- Regulations: A majority of coins have the same regulations as that of fiat money and that’s why this statement ultimately clashes with the main objective of cryptocurrencies.
- Centralized: Stable coins operate on a centralized system which basically contradicts the primary nature of the blockchain technology.
3. Amazon and Microsoft Using Blockchain as a Service (BaaS)
Another blockchain trend is BaaS, short for Blockchain As A Service. It is a new blockchain trend that is currently integrated with a number of startups as well as enterprises. But such blockchain future trends may not always be feasible when it comes to creating, maintaining, and managing a new blockchain solution.
BaaS is a cloud-based service that enables users to develop their own digital products by working with blockchain. These digital products may be smart contracts, applications, or even other services that can work without any setup requirements of the complete blockchain-based infrastructure.
Some of the companies developing a blockchain that provide BaaS service are Microsoft and Amazon, thus shaping the future of blockchain applications.
4. Blockchain is Expected to Transform Social Networking
It shouldn’t come as a surprise that social networking has become part and parcel of our daily lives. In fact, according to Statista, it is estimated that in 2019, there will be around 2.77 Billion social media users around the globe.
The introduction of blockchain in social media will be able to solve the problems related to notorious scandals, privacy violations, data control, and content relevance. Thus, the blockchain blend in the social media domain is another emerging technology trend.
With the implementation of blockchain, it can be ensured that all the social media published data remain untraceable and cannot be duplicated, even after its deletion. Moreover, users will get to store data more securely and maintain their ownership. Blockchain also ensures that the power of content relevance lies in the hands of those who created it, instead of the platform owners. This makes the user feel more secure as they can control what they want to see.
5. Interoperability Among Blockchain Networks
Blockchain interoperability is the ability to share data and other information across multiple blockchain systems as well as networks. This function makes it simple for the public to see and access the data across different blockchain networks. For example, you can send your data from one Ethereum blockchain to another specific EOS blockchain.
Benefits of Interoperability Between Blockchains
- Blockchain interoperability makes it easy and simple for users to transact from one blockchain to another.
- This function also offers a range of diverse functionalities, for example, cross-chain transactions.
- Interoperability also enhances multi-token transactions with the development of multi-token wallet systems.
Noteworthy Vendors of Blockchain Interoperability
- Blocknet: Blocknet is a project that is constantly striving to build a decentralized exchange in a bid to exchange interexchange communication.
- Wanchain: Project Wanchain is mainly about leveraging cross-chain capabilities to enhancing the connection between consortium, private, and public blockchains.
6. Ricardian Contracts as New Agreement
A Ricardian contract is a human-readable legal agreement that is also agreed and signed upon by both parties that are involved in the contract. It further gets converted into a machine-readable contract that also defines the listed intentions of the involved parties. Due to the same, it makes a good case for itself to become one of the latest technology trends.
Basics of the Ricardian Contract
- Flow: The flow of this type of contract can easily automate the operations on various blockchain applications in the future that are based on this technology.
- Purpose: The Ricardian contract also records the terms of an agreement as a legal document.
- Versatile: In the case of any Ricardian contract, it can also be stated as a smart contract.
- Validity: This blockchain contract is a legally binding agreement/document.
- Readable: The Ricardian contract is both machines as well as human-readable.
Advantages of the Ricardian Contract
- It acts as a smart contract since it not only defines the intentions of both involved parties under legal terms but also executes additional instructions.
- The costs involved in such blockchain contracts are comparatively low. In addition to this, the Ricardian contract also saves time and effort.
- As it is a legal binding agreement, both parties can end up in a court of law if anything goes wrong as per the contract details.
7. Hybrid Blockchains
Next future scope of the blockchain technology is hybrid blockchain, which can be simply defined as the blockchain that attempts to use the most appropriate part of the public as well as private blockchain solutions.
If we opt for an example of an ideal world scenario, then hybrid blockchain will be mainly controlled across various platforms. On the other hand, there are some authorities for whom the processes are stated as private, while for the others, they remain public.
Advantages of Hybrid Blockchains
- Transaction costs are much lower as the influential nodes in the network make the process simple and quick to verify transactions.
- Hybrid blockchain operates in a closed ecosystem so that every piece of information remains secure on the network.
- As per the report, it also protects from more than 50 percent of attacks as hackers are unable to gain access to the blockchain network.
- Here, the user has the option to change the rules when there is a requirement.
- Hybrid blockchain also helps in maintaining the confidentiality of a project while communicating with the outer world.
8. Content Streaming to be More Secure With Blockchain
Content Streaming is one of the emerging blockchain technology trends of 2020 that will be highly popular in upcoming years. Movie streaming services like Hulu and Netflix can incorporate this technology and its solutions to store user data in a more secure and easily accessible manner.
There can be many other applications of blockchain solutions for its properties, like interoperability, federated blockchains, etc. Such video, music, and social media streaming companies can also opt for a similar API of blockchain technology that will enable third parties to read and even write information on the respective blockchain itself.
Looking at all these recent blockchain technology trends, one can say that the year 20120 will be quite a significant time for this emerging technology in various industries. There’s no denying the fact that the technology of blockchain is likely to impact many different industry verticals differently.
Other than this, we’ve also released a report on the top blockchain app development companies in 2020. Our report is based on real-time data that our team of experts compiles after hours of research.