The year 2020 has been historically challenging for many of us (Know Top Blockchain Trends for 2021). A number of events occurred that were not part of my, and many others’, blockchain trends for 2020, and were not even anticipated. In particular, the COVID-19 pandemic not only exacerbated the trends that were already in place, but also created new ones. Learn detailed information about Top Blockchain trends in this Article.

In my last blog, it is customary to discuss the outlook for the coming year. Let’s take a look at the expected top trends in the blockchain and cryptocurrency landscape to watch in 2021 and beyond, shall we? So what will be the state of blockchain technology in a few years?

1. The size of the global blockchain market will grow exponentially

What was not predicted was the explosive popularity of blockchain technology this year. The COVID-19 craze has accelerated the momentum of digital transformation in many sectors, especially the use of blockchain and distributed ledger technology.

As a result of this, the market size of  global blockchain is about to grow from USD 3.0 billion in the year 2020 to about USD 39.7 billion by the year 2025, at a Compound Annual Growth Rate (CAGR) of 67.3% in real terms, between the year 2020 and 2025.

In addition. it is also estimated that at least 25% of the Forbes Global 2000 will use blockchain as the foundation for a large-scale digital trust in the next year.

2. Covid-19 will further accelerate blockchain’s transformation

There will be a repositioning of various blockchain projects. Experts predict that 90 percent of blockchain projects will need to be replaced within a year.

This is because many companies are neglecting important features such as tokenization, smart contracts, and decentralized consensus. In addition, the pandemic has led to a more pragmatic and pragmatic approach where blockchain efforts are focused on day-to-day business to continue on the growth path. Blockchain projects with clear benefits are expected to move forward at a faster pace over the next year. In addition, more and more companies want to join the network to help solve the supply chain problems created by pandemics.

3. Long-term blockchain projects will be put on hold

The volatility and uncertainty caused by COVID-19 has caused many companies to temporarily pull out of some of their long-term DLT-related projects. Most of these long-term strategic projects, especially those requiring changes in market structure and regulations, are now being worked on with extended timelines. It is increasingly difficult to obtain budgets for pure experimentation and R&D, which is done in isolation from the business, and has already been cut this year. And this will result in even more projects being put on hold. (Why Top Blockchain trends matter to crypto investors?)

4. Companies need to accelerate their digital transformation

Digital transformation is no longer an option for enterprises, it is a necessity for survival. As the COVID-19 epidemic increases the pressure on daily operations, it is imperative for companies to accelerate their digital transformation processes to become stronger than ever. Blockchain technology is likely to bring the most significant and dramatic changes in the way business is done in the next few years. For this reason, many industries are turning to blockchain as a useful tool for digitization.

5. Globally, 30% of projects go into production | Top Blockchain Trends

It is predicted that a growing number of blockchain-based projects will move into production. This number not only reflects a more pragmatic attitude towards projects and the growing maturity of the technology, but also reflects the acceleration and launch of projects with the potential to deliver measurable advantages in a short period of time, driven by the pandemic. (Top Blockchain trends)

According to Gartner, more than 40 percent of the companies surveyed are operating at least one blockchain pilot. They estimate that 30 percent of global projects will move into production, due in part to the COVID-19 pandemic. As a result, the majority of networks that move from pilot to production will be running on private sector blockchain platforms.

6. Private (permission-based) blockchain will become mainstream

Another trend envisaged is that private blockchain will be the major contributor to the growth of the blockchain market, maintaining the largest market size by 2021. Enterprise blockchain solutions are customized and developed according to the business needs of enterprises. Private blockchain offers many opportunities for businesses in terms of business-to-business use cases using blockchain technology. Private blockchains offer greater efficiency, privacy, trust and transparency while ensuring security through the use of private keys known only to authorized personnel within the organization.

7. China will make the fastest progress

From a regional perspective, China is leading the global blockchain game and will continue to play this role through 2021. Blockchain is taking China to a level far beyond what other global market players can achieve today. China’s “New Infrastructure” national initiative, a state-supported network of blockchain-based services, aims to make blockchain an integral part of the country’s digital infrastructure. Furthermore, it has ambitions to provide a global public infrastructure through this network. Moreover, while other countries and regions such as Europe are considering issuing their own digital currencies, China is almost ready to issue crypto-yuan.

8. The financial sector will further dominate the blockchain market

Among the sectors affected by the COVID-19 pandemic, the financial sector is one of the most severely impacted. Falling margins and shrinking profits are forcing banks to adapt and increasingly meet the needs of their customers in an increasingly digital world. The adoption of fintech and blockchain technology can help streamline and modernize operations. 

This could lead to strong growth in contactless transactions and redesigned financial services. The banking and finance industry is expected to rapidly adopt blockchain in the coming years. As a result, this segment will account for the largest market size of the global blockchain market in the coming years.

9. Increased availability of DLT services by non-traditional financial institutions

In 2021, we will see another trend triggered by COVID-19, namely the rise of non-traditional financial institutions. This is due to the increasing number of consumers as well as businesses that are using blockchain for online transactions and financial services.

These groups have a growing number of non-banking options offered by a range of institutions, from non-bank lenders to cryptocurrency-based banks to fully decentralized financial (DEFI) service options.

10. The potential for cryptocurrencies to reach new heights

While 2020 has proven to be a good year for all cryptocurrency markets, 2021 is expected to be an even better year for Bitcoin and other cryptocurrencies. In the wake of the COVID-19 pandemic, these cryptocurrencies are taking center stage as investors look for new and safer assets. That’s why many blockchain development companies in India are focusing on cryptocurrencies rigorously.

With so much uncertainty in the market, Bitcoin is proving to be a “valuable form of digital gold” that qualifies as one of the most powerful players in the digital currency world due to its decentralized nature, which is largely independent of external factors such as government policies. 2021. Social distance and cashless transactions may further set the stage for cryptocurrencies as we enter and adapt to the new normal. However, in the ever-changing cryptocurrency space, anything can happen.