The term blockchain technology can be defined as a distributed as well as a decentralized ledger which is widely used in recording the provenance of a digital asset.
The blockchain technology was first created in the year 2009. Due to its immense potential in the future, it became extraordinarily popular throughout the world. There has been an exponential transformation with the help of this technology in every sector of the market covering the retail sector, healthcare, and medicine industry, e-commerce industry and what not! Blockchain technology has been able to be the most searched keyword in the last year due to its popularity among professionals, developers as well as the common people.
It is evident that there is immense scope for blockchain-based applications and blockchain development company in the future. But there are trends changing in this landscape too. It is now mainly used nowadays in banking, investing as well as cryptocurrency. As its name suggests, it divides the records into several modules known as blocks which are connected to each other in such a way that each block holds some information about the previous block and so on.
Understanding of Blockchain
In this way, the system becomes more controllable, safe and secure. Blockchain can be further understood with the help of the following points:
- Digital Pieces: Blocks can be explained as digital pieces or small modules of information. Blocks hold some memory and data and when combined together, these blocks make a whole database and give useful digital information.
- Storing information about elements: Blocks greatly help in storing information about various elements of purchasing and transactions such as who is participating in transactions, amount details, account details and so on. For instance, if a person is buying something from an eCommerce website or working with any wallet application development, that website would record the name of the customer along with unique identifying information such as digital signature, transaction id, etc. This improves transparency and reduces redundancy of data.
- Differentiating the information: Blocks also help in storing the information which helps them to distinguish themselves from other blocks. For instance, two usernames may be the same but they can be easily identified with the help of blocks. Blocks do this with the help of a unique code usually known as “hash”. This allows a particular block to get identified easily and in a differentiated manner.
- Size: A single block can have up to 1 MB of data in it. It totally depends upon the size of transactions occurring. This means that a single block can hold thousands of transactions under one roof.
- Security: Blockchain development companies have become exceptionally popular because of its high-security purposes. The data stored and retrieved in blockchain cannot be manipulated, tampered or harmed in any way. Also, when it comes to privacy, it has been seen that in blockchain technology, the contents of the blockchain can be viewed by anyone. But it also gives the opportunity for users to connect their computers with the blockchain network. Each computer then receives its own copy of the blockchain which gets automatically updated whenever the user creates any new block.
There was a lot of excitement in the year 2019 because of the latest blockchain technology and blockchain app development services. With the launch of these new blockchain technologies, there are many possibilities that it will take the transactions done through mobile applications and the business functioning to a whole new level.
Trends Emerged In The Year 2020
Below are top trends that have emerged in the year 2020 in the blockchain technology:
1. The rise in Federated Blockchain is expected:
The Federated blockchain can be termed as the best blockchain trends in the industry in 2020. This is nothing but an updated version of the basic blockchain model, this makes it ideal for many specific use cases. If the experts are to be believed then there will be a rise in the usage of the federated blockchain because it offers private blockchain, a better and more customized look.
For example, in federated blockchain or the blockchain that are of the same kind, the preselected nodes of the blockchain can be controlled by multiple authorities instead of just one organization. For the transactions to be processed further this selected group of various nodes can validate the block.
- Instead of operating under a single secure and highly trusted node the federated blockchain operates under many different authorities.
- The authority nodes here are previously selected from various organizations and they are connected to the blockchain network after that.
- The responsibility of maintenance and validation of the block is on the group that is selected.
- The access to inner-restricted areas is only given to only the group.
- Financial Services
- Supply Chain Management (SCM)
- Claims of Insurance
- Security Records of Organizations
- Multiparty Aggression
2. To dominate the Crypto Space there are stable coins:
The people who know about blockchain will also know about the cryptocurrency and they will also know that is volatile. Cryptocurrencies can be simply explained as the side products of blockchain technology. Stable coins have just been developed, it is in its initial phase and it is expected that in the year 2019 the stable coins will reach their all-time high. The fact that it can be so popular in the year 2019 makes it the second most looked forward technology that is emerging in the industry. It has made its mark in wallet application development too.
Future Applications of Stable Coins:
- It provides additional security as compared to other currencies because as its name suggests it is a stable currency and it will not crash, which means they don’t fluctuate often. This means that the users of stable coins will not have to worry about them crashing every now and then. This allows users to invest more in other cryptocurrencies.
- With the help of stable coins, the process of sending remittances overseas has become simple. They hold the same monetary value as the flat coins and they are also very fast. They are also very much affordable.
- P2P (peer to peer) payments have been made easy by the help of stable coins. They can also be used by people on smart contracts for the purpose of automated payments.
- The overall condition of the cryptocurrency can be improved by using stable coins, they can also be used to stabilize the market.
- Stable coins can also be used as a regular currency, which means it can be used to buy products maybe not in the local market but for sure in the online market. There are some websites that accept cryptocurrencies and stable coins being the most stabilized cryptocurrency is accepted widely over most of these websites. This currency can be used just like any other digital currency to shop online.
- Due to a sudden crash in the market, the crypto-backed or the commodity-backed stable coins may become unstable at times. This is a problem that is not small, the experts are still looking out for a way to back up the stable coins if the value of their assets drops in the real world.
- Users cannot fully trust the system of stable coins because of their centralized nature, the reason behind it is that they still have to prove their applications in the real world.
- Most of the coins have the same regulations as of the flat money and that creates a clash with cryptocurrency’s main objectives.
- The stable coins contradict the primary nature of the blockchain technology as they operate on a centralized system.
3. Blockchain as a service (BaaS) by Microsoft and Amazon:
Two of the biggest companies in the world i.e. Microsoft and Amazon use Blockchain as a service (Baas). This has come in the trend recently and no one other than the two biggest cloud computing platforms of the world is using blockchain technology. This trend has been integrated with a lot of startups and other enterprises recently. While looking at it from a different perspective, it is not feasible to create, maintain, and manage a new blockchain solution like such blockchain future trends. Cloud computing services have also started using this technology.
BaaS or Blockchain as a service is a cloud-based service that allows the uses to produce or develop their own digital products through working with the blockchain. The developed digital products may be smart contracts, applications or any other services that can work without needing any setup of the complete infrastructure based on the blockchain. Amazon and Microsoft are the two companies that are actually developing blockchain as a service (BaaS) and they are shaping the future of the blockchain applications along with AI development company and IoT app development company.
4. Social Networking Transformation is expected through blockchain:
Social networks have now become an inseparable part of life for most of the people around the world. According to stats, it is expected that in the year 2019 there maybe around 2.77 billion users on social media around the globe, and that is a very huge number. Blockchain’s introduction into social media will help solve so many problems, problems like privacy violations, notorious scandals, data control, and relevance of the content. The integration of blockchain into social media is another trending technology.
With the introduction and integration of blockchain with social media, it can be ensured that all the data that is published on the social media will stay untraceable and will not be duplicated, even after it has been deleted. More than this, the users will be able to store the data with more security and will be able to maintain their ownership of their data. There is one more thing that will be ensured by the blockchain and that is the power of content relevance is in the hands of the people who have created it and not in the hands of the owners of the social media platforms. The users will feel safer as they will be able to control what they want to see and what they don’t with the help of blockchain technology integration in social media.
5. Among the networks of Blockchain there is interoperability:
The ability to share some data or other information throughout multiple blockchain networks as well as the systems is called Blockchain Interoperability. With this feature, it becomes easy for users to see and access the data across various blockchain networks. For example, the users can share their data from one Ethereum blockchain to another blockchain.
- The transaction from one blockchain to others becomes easy and simple with the help of blockchain interoperability.
- The cross-chain transaction is one of the examples of diverse functions offered by interoperability.
- Multi-token transactions with the development of multi-token wallet systems can also be enhanced by the use of blockchain interoperability features.
6. The new agreement as to the Ricardian Contracts:
A human-readable legal agreement that is signed by two parties that are involved in a contract is called the Ricardian Contract. This contract is further converted into a contract that is readable by the machine as well and it also defines the listed intentions of the parties that are involved. Due to all these reasons, it is also among one of the trending blockchain technologies in the year 2020.
- It is not just a contract that defines the intentions of both parties that are involved in a contract but also provides additional instructions, and this is why it can be called a smart contract.
- The costing of this contract is comparatively low. It also saves the time and efforts of the parties.
- Because it is a legal binding agreement, the two parties that are involved can go to court if anything goes wrong as per the details of the contract.
7. Hybrid Blockchains:
Hybrid blockchains can be regarded as the next future scope of blockchain technology. It can be defined as that blockchain which may be used in the most appropriate part of the public as well as the private domain of blockchain solutions. If a real-world scenario is considered, it can be clearly seen how hybrid blockchain will be widely used to control access across several platforms. Additionally, hybrid blockchain technology can also be to define the access specifiers as private or public as per the preferences of the users. It comes with its own set of advantages.
Read the blog- How blockchain is improving our lives in 2020 and beyond
Few advantages of hybrid blockchains have been listed below:
- The cost for transactions is much lower as compared to the transaction costs of other technologies. This is because there are some influential nodes present in the network which enable the whole process to increase its simplicity as well as make it quick when it comes to verifying transactions.
- Hybrid blockchain systems demand a closed ecosystem to work. This enables the user to secure every piece of information he/she stores. This increases the level of security to an exponential level.
- There have been reports where it has been seen that hybrid blockchain technology has been able to protect more than 50 percent of attacks, especially from hackers, has due to this technology hackers become unable to get any kind of access to the network of blockchain.
- With the help of this technology, the user gets an additional feature of changing the rules in the database whenever and wherever required. This helps to deal with a lot of complications in an easy and hassle-free manner.
- All the information stored is strictly stored in the database. This means the hybrid blockchain technology is able to maintain the confidentiality of all information stored while communicating with the outer servers and different databases.
8. Blockchain can make content streaming more secure:
One of the emerging blockchain technologies of 2020 is going to be content streaming. There are movie streaming services such as Hulu, Netflix, and Amazon Prime which are heading towards using and incorporating this technology as well as its solutions to store data of users in a more secure way that can be easily accessible and usable from the servers.
These streaming services can avail several properties of blockchain technology such as interoperability, federated blockchains and many more. This may help to enable third parties so that they can read and write relevant information on the respective blockchain as per their own preferences.
All these latest blockchain technology trends have the potential to make a mark in the coming year and will gain significance at every corner of the world. Additionally, it has been a proven fact how distinctly blockchain may impact several industries as well as verticals differently and it is going to do the same in the future too.