Blockchain Technology is in general, a digital ledger that can record a plethora of different information. The information is decentralized, often anonymous and public. The information (often transactional) then cannot be changed or fondled with retroactively or proactively, without the alteration of all previous bits of information. In layman’s terms, it is the most hack-proof, mistake-proof and hinderance-proof way to keep, track and use information in many different areas and industries.
Blockchain Technology is the next big thing in many industries and sectors. It is a trend that has solidified its position as the up-and-comer and is becoming a standing topic in discussions about the future. The Financial Industry is a leader in applications of all Fin-Tech trends, and that translates to the Blockchain technology as well. 2020 is the year that we will be seeing Blockchain Technology gain a lot more foothold in the industry and start to tie in the different uses for the technology into a more streamlined process. Below are some predictions / projections for 2020:
- Most Blockchain startup companies and processes will fail – As the technology is not even fully understood, let alone embraced and implemented in most industries, there will be a lot of fails and missed marks on a lot of new projects. Investors will need to be weary of this and extra cautious of investing.
- Financial Industry will continue to lead Implementation – After the safety and anonymity of crypto-currencies were implemented, the financial industry started to review and research possible implementations. It is easiest for the banking system and most beneficial to implement the security of blockchain technology to increase safety and speed of transactions. It is estimated that a staggering 77% of all Financial Institutions (In Developed Nations) will utilize Blockchain technology in at least a part of a process in 2020.
- National Crypto-Currencies will start popping up – Venezuela already has a crypto-currency backed by the mineral and oil reserves of the nation. Sub-Westernized countries like Russia are also considering their versions of crypto-currencies.
- Blockchain technology will grow exponentially in sectors where secure financial presence is a must. We will likely see large growth in sectors such as banking and financial services. The technology will be able to protect the anonymity of the transactions as well as the sensitive information involved.
- Legality / lawmaking will start to catch up and cover blockchain technologies and their hosts. This will have to be a stepping stone before the point above can be put into action: no legitimate company would incorporate an unregulated technology into providing a regulated service (i.e. financial advice, banking services, etc…).
Overall, we have a lot to look forward to in 2020 for this new technology, and even though it may not be market-ready for anything major or even noticeable yet, its time will come and 2020 will bring forth large steps toward a united and secure blockchain world.