Ever since its inception, Blockchain technology has demonstrated unparalleled potential when it comes to scalability and possible future implementations. In the previous year, Blockchain has witnessed several innovative enhancements as the masses began realizing its potential in fields other than cryptocurrency.
Considering the past trends, it’s not too far-fetched of an assumption to say that the blockchain trends are in line for innumerable other improvements and unique inclusions within various distinct fields during the coming year. As a tribute to the ingenious blockchain technology, we’ve compiled a list of the key blockchain trends that hold a high probability to experience a major hike in popularity during the duration of this new year.
Upcoming Blockchain Trends in 2020
As we have stepped into a new year, let’s find what will the blockchain bring this year. So, here we compile the list of upcoming blockchain trends 2020. Let’s read on!
1. Hybrid Blockchain
Blockchain Technology is mainly divided into two categories – Private Blockchain and Public Blockchain. Private Blockchain is defined as a configuration where only a few authorized users are able to add and view the data within a specified block. Whereas the Public Blockchain is a configuration where the entire data within a particular block can be viewed openly by the public without the need to be authorized by the owner.
Both of the configurations above are unfit for government agencies since a public configuration would lead the agency to work in complete transparency without any sense of privacy and the private configuration void the peoples’ trust within the agency as it would be working in absolute privacy. For these situations, a third configuration will come into existence, aptly named as the Hybrid Blockchain Configuration.
A Hybrid Blockchain Configuration allows the users to segregate the data within a block into categories. Some of the defined categories can be viewed openly by the public while some are reserved for authorized users. It can be alternatively configured as only allowing the authorized users to link another block next to the specified block while keeping the entirety data within the block open to being viewed by the public.
This configuration combines the security of the private configuration while keeping the satisfying levels of transparency of the public configuration intact. Owing to this exact characteristic of the Hybrid Blockchain Configuration, it is ideal to be used by government agencies. Hence, making it one of the key blockchain trends that are probable to be innovated upon in 2020.
2. Interoperability for Blockchain
Given that Blockchain Technology is still relatively new, interoperability between diverse networks isn’t entirely possible as of the current movement. This basically means that, since there are different isolated networks formed through Blockchain technology, there is no feasible way for diverse networks to interact with each other and share relevant information if required. Although, it is expected to change during the course of this year.
Interoperability within Blockchain networks will make these diverse P2P networks much more practical in the day-to-day to usage. Implementation of the characters above within the Blockchain networks will enable seamless interaction between different isolated networks. Then, it will result in one massive mesh of P2P networks where users can share desired information without the need for an intermediary.
Considering the existence of a few vendors who have already dedicated themselves to developing a similar system, interoperability holds high potential for turning into one of the blockchain trends 2020.
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3. Federated Blockchain
The private configuration has one major disadvantage being that it only has one authority that can distribute the permission to write in a progression of a particular block. This re-establishes a centralized system that Blockchain was solely created to remove. That also makes it inappropriate to be implemented for storing data about insurance claims or other use cases where a third party is necessary. To counter the disadvantage above of the private configuration, a slight modification was made to the private blockchain configuration – Federated Blockchain Network.
A Federated Blockchain is strikingly similar to the private blockchain configuration. The only major difference between the two is that in the Federated Blockchain configuration instead of appointing one authority that is authorized to distribute writing or viewing permission. Multiple organizations are elected that are allowed to grant writing or viewing permissions for a restricted network to individuals.
This is a seemingly insignificant modification to the private blockchain configuration. It makes using blockchain ideal for various other use cases like storing insurance claims, financial services, and multi-party functioning systems. This makes it the perfect candidate as one of the top blockchain trends that will be seeing major improvements in 2020.
4. Blockchain as a Service (BaaS)
Creating a blockchain system is comparatively easier than maintaining it as it scales up. Given the innumerable advantages that it gives to the user, the struggle almost seems worth it. Major corporations carry a similar mindset about the Blockchain technology. Noticing the increasing popularity for blockchain use cases and implementations, some of the major enterprises already offer Blockchain as a Service (BaaS). Using blockchain as a Service allows users to seamlessly create blockchain networks for applications, smart contracts, and for other storage purposes.
Given the ever-increasing popularity and several new implementations, developers, and users are inevitably going to target implementing blockchain systems within their respective companies or applications. Owing to the previously mentioned prediction, major enterprises, and tech giants are going to divert their attention more to providing developers to easily create and maintain blockchain environments without the hassle of creating the basic blockchain infrastructure on their own. Ultimately, all of this is going to lead to Blockchain as a Service getting enough popularity to come on the top blockchain trends of 2020. This is one of the most talked about blockchain technology trends that can benefit people of all sectors.
5. Stable Coins
Cryptocurrencies were the sole purpose for the creation of the Blockchain technology. Despite its advantages, popular cryptocurrencies like bitcoin and Ethereum are highly volatile and are prone to noticeable fluctuation within a very short duration of time. This makes them incredibly risky and prone to crashes which makes them unideal for P2P transactions.
This is where Stable Coin comes in. As the name implies, Stable Coin is yet another form of cryptocurrency which differs itself from other cryptocurrencies on the fact that it is relatively stable and doesn’t fluctuate depending on the market conditions. This makes them the ideal alternative for P2P transactions and even for everyday use, unlike other non-stable cryptocurrencies. Given its relatively stable condition, it is less likely to witness a currency crash, making it comparably less risky for everyday transactions.
Although, Stable Coin is still in its infant stage as it basically beats the whole point of cryptocurrency which was to decentralize currency and transactions. Given the space for its improvement, Stable Coin is likely to experience various major enhancements during the course of 2020, making it one of the blockchain future trends in this year.
6. Security Token Offering
ICO is referred to as token offering from a company during a transaction, aimed to raise capital for a specific project. This token offering system was in the headlines for various reasons in the course of the past few years. Nearly 50% of the ICOs were classified as scams which damaged the trust within investors for the organizations using the ICO system. This was largely due to the fact that ICO is entirely unregulated by any authority which was why almost half of the total numbers were considered as scams.
Given the plummeting trust of investors, a solution had to be put in place to counter all the disadvantages of the ICO-based system. This solution came in the form of Security Tokens Offering or STO. STO is defined as a token offering system that is very similar to the ICO configuration with the only difference being that STO is entirely regulated which drastically reduces the risk of scams and the losses that follow the same.
STO offers several advantages over the ICO token offering system. Some of the previously mentioned advantages are the legal rights that it offers to the company to distribute the revenue gained and for the audience to vote regarding the same. The STO configuration is also vital in creating a transparent environment between the company and the investors which re-establishes the trust between the company and its investors. Owing to its needs and the advantages it offers over the now obsolete ICO-based system, STO is sure to be in the headlines as one of the blockchain future trends that will be emerging during the course of the next year.
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7. Ricardian Contracts
The Ricardian contract has the potential to transform into the next generation of contracts that are smart and technology driven. This contract records each of the detail of an agreement in a format that is machine readable, and you can even execute it further if required. It also converts human-readable contract between diverse parties in a machine-readable code which you can execute with the features of a smart contract. This is readable by machine as well as the people by the interweaving computer language with the regular language. This can help in a faster resolution of the agreements and disputes and can be executed easily.
The best feature of the Ricardian contract is its transparency. It can find its significance to resolve agreements of all kind and is not limited to the use in simple situations such as transactions. It uses a dully signed agreement which can’t be falsified once you have signed a contract. The software is all set to predict the information you need to know about the hash. So watch out for this one of the most talked about blockchain trends 2020.
The above mentioned recent trends in blockchain technology are just a few of the top blockchain technology trends that will be emerging during this year. Despite, the field of Blockchain technology has experienced the vast array of implementations and improvements, it still happens to be in its infant stage. So, the blockchain is bound to receive various enhancements during the course of the coming decade.
This technology holds incredible potential to become something that is vastly used among the masses, considering the level of security it offers while storing critical information. 2020 is probably the year when enterprises and even the general masses start to embrace the blockchain trends 2020 and realize its importance in the progression of humankind.
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