It’s not like we’ve entered 2020, here!
In the New Year 2020, there are some important trends and movements on the blockchain and cryptocurrency area to watch, you know! Some of the main trends we have outlined this year will last in 2020. Users of blockchain technology and general ledger distribution will focus more on operational issues, usage flexibility and interconnectivity. They will look for service enhancements and tool offerings that meet their business needs.
Blockchain technology will become more mature
However, Blockchain itself is far from a failure. What we have seen in 2019 is an increase in technological maturity. And this trend will continue in an accelerated way in 2020 and beyond. Next year will mark the start of a more mature network and can be used to create decentralized applications, building an increasingly competitive landscape for projects to “struggle out” to become mainstream.
Going forward, for the blockchain platform and applications built on them to get the opportunity to make their mark, the focus must be more on increasing usability and finding product-market compatibility. 2020 will see the launch of several ‘third generation’ blockchain projects, with greater variety and range of applications built on the DLT ecosystem. Several major chains will release significant technological improvements such as Ethereum with ETH2.0 and NEM with Catapult, both in early 2020.
More realism is expected to come to the market towards the blockchain and its implementation. Those responsible for blockchain projects will take a more informative and strategic approach. The effect is that by 2020 there will be a more realistic and pragmatic approach to blockchain projects. The DLT Enterprise Team will thus focus on realistic use cases that might provide certain benefits and bring existing projects closer to, or into, production.
We will see a shift from what is called R & D-type exploratory proof-of-concept (PoCs) running separately to focus more on the end-to-end process to which the blockchain / DLT will apply. This means putting more emphasis on how the frameworks are performing and how well they are integrated with existing systems and, potentially, with each other. As a result of this approach, we will see a more successful implementation of blockchain technology, where there will be an increase in the relationship between blockchain and business management solutions.
Growing the adoption of blockchain by companies
Although skepticism will remain (for now), and many companies will take a wait-and-see attitude towards the adoption of blockchain, the increasing maturity of blockchain technology will definitely trigger adoption in the coming years. More and more companies will understand the added value of distributed ledger technology (DLT), including transparency, conservation and decentralization.
A Deloitte report reveals that 34% of companies have started the deployment of the blockchain, while 86% of leaders believe that mainstream penetration is inevitable – results that clearly indicate an ongoing market maturity. But before seeing the actual adoption of the blockchain technology it needs to mature further, not only technically but also as part of a more complete ecosystem.
The financial industry will continue to lead the adoption of blockchain
After blockchain overcomes the initial hurdles, it will become a game changer for many industries with finance that is expected to become the “leading taker” of blockchain technology. Unlike other traditional businesses, the banking and financial industry will not be too reluctant to adopt blockchain.
According to a recent PWC report, by 2020, 77% of financial institutions are expected to adopt blockchain technology as part of the process in production. Financial companies are more likely to embrace blockchain for more traditional banking operations because of the many benefits offered. Blockchain will take root more quickly in financial services for security and identity management – first for businesses and then for consumers.
Article source: Finextra.com by Carlo R.W. De Meijer