Opinion

Evolving Trends of Blockchain in 2021 for IT & Other Industries

Blockchain has evolved as a trend that is incorporated with several start-ups and businesses. It is a cloud-based service that enables users to build their own digital products with blockchain technology.

Despite its benefits smaller and mid-level companies are hesitant to invest because it is difficult to maintain and operate a blockchain in their functional process. It is a distributed ledger technology recording all transactions multiple parties on one theoretically immutable chain is how one can describe blockchain.

Being distributed in nature blockchain eliminates control by a single entity or third party to prevent data from breaching one of the key benefits and usage. Privacy is the primary concern associated with social networking and blockchain offers complete control of their content in the hands of social media users.

Gartner has speculated that by 2022 over a billion people will have some data about them sorted by a blockchain, but they may remain unaware of it. Collaborating AI with block chain will create innovations which are better than everyday computing standards and create efficiency.

IoT is one of the biggest target when it comes to cyber-attacks. Combining blockchain technology with IoT will play a key role in how devices will communicate directly between each other. Blockchain is planned as a basis for applications that include transactions and interactions. These can incorporate smart contracts or other smart applications that bolster explicit Internet of Things processes. This way blockchain innovation can improve compliance in the IoT as well as IoT features and cost-efficiency.

How Blockchain will shape up in 2021

Digital Trust: Gartner in its Hype cycle for emerging technologies predicted that “algorithmic trust models ensure the privacy and security of data, provenance of assets, and the identities of people and things”. Algorithmic trust models ensure the privacy and security of data and the identities of people and things.

For example, “authenticated provenance” is a way to authenticate assets on the blockchain and ensure they’re not fake or counterfeit. While blockchain can be used to authenticate goods, it can only track the information that it is given.

Blockchain in Logistics: IDC analysts predict that 65% of transcontinental shipping will be legislated to use blockchain that encompasses crew health information, bunker fuel sourcing, and goods origination data. 15% of supply chain transactions will use blockchain for the provenance of ethical and sustainable practices to increase digital trust. And, by 2025, these analysts said that 10% of financial institutions will use block chain technology to know their customer compliance to create a transparent, auditable record of entities.

Blockchain moves from projects to production: Forrester research says that 30% of projects will make it into production. This number doesn’t just reflect the more realistic approach to projects that we noted and the increasing maturity of the technology but also the pandemic-induced acceleration and initiation of projects that bring measurable benefit within a short timescale. The research further elaborated majority of networks that transition from pilot to production will run on enterprise block chain platforms.

IDC analysts recently wrote that, “the most favoured companies right now are those that are not only secure, but also give back to their communities. Trust is not just about security anymore; it is also about responsibility.”

Blockchain in construction industry: During the COVID pandemic, many contractors have been forced into bankruptcy due to work and payment constraint. Only few new projects were being launched and many are being halted due to businesses prioritizing between revenue generation and expenditure. There is a scarcity for new projects.

In this scenario Blockchain technology can be a way forward to solve these major issues. But implementation is a major issue. The construction industry’s use case of blockchain in construction is based on the creation of a “smart contract.”

A smart contract is a digital application with no middle man and executes its terms automatically once predefined conditions are met. Smart contracts are written and executed as computer code linked to payments. It offers fast settlement, high accuracy, less risk, reliability of payment fulfilment and lower transaction costs.

Smart contracts protect money paid by owners. They provide transparency because the investor can see all transactions that go through the system, and there is no possibility to fake a transaction or add it after the fact because of the way blockchain technology works!

(Image Courtesy: www.blog.simonassociates.net)

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