Blockchain Technology in Upcoming Years - an Overview of Trends and Future Predictions
24th December 2020
All kinds of cryptocurrencies use blockchain, which serves as localized structures for documenting settlements that call for a specific digital currency. As a transaction ledger, it sustains identical copies throughout each computer appendage in a network, thereby fastening the blockchain’s security.
Blockchain technology continues to gain ground for companies across various sectors, which opens up the possibility of blockchain technology becoming the most integral innovation to result from the rise of cryptocurrency.
In this article, we’ll take a closer look at blockchain technology in the upcoming years and determine why this innovation can add value to every establishment.
1. Usher big transformations for the tech and IT industry
Data has turned into the driving force behind a good number of companies. However, guaranteeing data security, privacy, and authenticity remains a roadblock that must be lifted throughout big data use. In 2019, the US saw 1473 data breaches with more than 164.68 million sensitive documents exposed, as per data from Statista, and that’s just in a single country.
Besides this, tampering with information remains a risk for enterprises.
But how does the future of blockchain technology in business fit into this? Blockchain technology can act as a distributed database sustaining an expanding chain of data transaction files.
Since it’s distributed in essence, everything that occurs in the blockchain is completely out in the open, thus dodging tampering and safeguarding the security of all transactions.
For example, if you need to view the amount of money you’ve spent, you can simply count on a blockchain explorer to display the information you need.
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Additionally, once information is housed in the blockchain, it cannot be manipulated or modified. Each block contains a thorough summary of the preceding block that takes shape through a secure hash value.
Common use cases the future of blockchain technology in business can be seen in safeguarding transaction logs, manifesting the credibility of legal files, and verifying artistic output originated on a particular date.
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2. Become a prominent platform for transactions
Everybody knows blockchain verifies transactions, whether they’re linked to virtual assets or digital currencies. Because of its capabilities as a giant transaction processing platform, it holds the potential to cater to most businesses.
The future of blockchain technology in business relies on the innovation’s ability to confirm and approve legitimate transactions, regardless of size. The fact that it’s faster than bitcoin makes it even more valuable transaction-wise.
3. Won’t stop at cryptocurrency
Blockchain is very useful. Its capabilities include tokenization for safeguarding sensitive information, fixed timestamping, asset transfer through a transaction channel, and the administration of smart contracts.
Future trends of blockchain technology predict an increase in such uses and persisting dependence on the innovation to streamline operations through replacing elements or supplying a completely new blockchain service.
Other future trends of blockchain technology include expansion beyond cryptocurrency, which is reflected in experimentation and application of its use across multiple fields. Deloitte's report showcases 40% of its respondents putting in a minimum of $5 million in blockchain technology.
The same research also shows the various industries broadening and diversifying their blockchain endeavors, thereby opening themselves to blockchain technology trends.
For instance, the healthcare, medical, clinical, and life sciences industries are looking forward to incorporating the future trends of blockchain technology to multiple aspects such as longitudinal healthcare records, drug cultivation, medical guarantee, supply chain cost reduction, and patient portals, just to name a few.
4. Applied in smart contracts
One of the potential blockchain technology trends that can drive society forward is documenting entrepreneurial agreements through smart contracts on the blockchain, making them unalterable and immutable.
Although it sounds like a promising aspect in blockchain technology, there are issues surrounding smart contracts that must be addressed.
Looking at it from the perspective of commercial law, using smart contracts must be well-thought in terms of negotiation, execution, and management on a blockchain through a legal and compliant manner. Matters regarding liability need to be tackled. There must be answers to potentially miscoded contracts, failure to accomplish stakeholders’ aims as well as an agreement to appropriate governance, dispute verdicts, and privacy, among others.
Despite these regulations and the need to guarantee control, we can foresee machines facilitating agreements with other machines as one of the future trends in blockchain technology.
5. Permissionless blockchains will continue to dominate
If you’re no stranger to blockchain technology, you’ll know there are two kinds of blockchain: permissionless and permissioned blockchain.
With permissionless or public blockchains, participants utilize pseudonyms to safeguard their identity. Meanwhile, permissioned or private blockchains are sheltered by access benefits, and participants are verified.
At present, permissionless blockchains are regarded as more reliable due to the consensus principle, which is used to reach an essential agreement regarding a single data value or a single network state among dispersed operations and varied agent structures.
The Future of Blockchain Technology: An Impending Rise
Blockchain technology promises long-term advantages like enhanced cash flow, reduced transaction expenses, decreased settlement duration, native resource generation, as well as constructing new trust replicas.
While the advantages of the future trends of blockchain technology are great, there are still plenty of challenges that demand to be addressed, such as data volume and size, regulatory and interoperability conflicts, data privacy, absence of incentives and clear policies, as well as security.
Nevertheless, companies need to anticipate and prepare for blockchain technology's future because it’s arriving sooner than expected.