Blockchain Applications To Expect In 2021-22

Tokenization

The term tokenization refers to the process of converting both physical and non-physical assets into blockchain-based digital tokens. In the cryptocurrency space, the concept of tokenization is not only growing popular but also paving its way into the traditional industries. 

Cryptocurrency/Digital Currency

In the past year, leading financial services companies like Visa, PayPal, JPMorgan, etc. have already adopted cryptocurrency as their payment method. As more and more startups, armed with capital, are heading towards developing more user-friendly blockchain-based platforms, they are believed to work certainly in favor of cryptocurrencies.

The year 2021 has been undoubtedly the banner year for cryptocurrencies. But both blockchain and cryptocurrencies have progressed and moved from earlier times and now have become a crucial part of mainstream businesses. This year, while stable coins are believed to lead the way, bitcoin is expected to close the year with prices above $50,000+.

The more apps on financial services will be built using blockchain technology, the greater and wider will be the acceptance of cryptocurrencies.

CBDC Projects

Do you know what CBDC is? If not, then know that it’s a Central Bank Digital Currency that represents the official currency of a country through blockchain-based tokens.

And with China starting the trials of its new CBDC project, i.e. DCEP or Digital Currency Electronic Payment, the momentum of CBDC projects in other countries has literally spurred. Yes, central banks across the world are now racing towards developing digital currencies of their own.

Yes, the outbreak of the pandemic has tremendously accelerated the digitization of almost everything in 2021. With China’s CBDC in news, expect to see more CBDC projects or digitization in the finance sector in 2021.

Permissioned Blockchains

Private blockchains aka permissioned blockchains are expected to be the main contributor to the growth of the blockchain market. In 2021, this additional blockchain security system is expected to retain the maximum market size and blockchain market opportunity.

Why? Well, unlike enterprise blockchains where solutions are developed and customized as per the requirements of the corporate businesses; in private blockchains, there are more opportunities for corporates when it comes to utilizing blockchain for use cases business-to-business.

As permissioned blockchains deliver more privacy, transparency, reliability, and higher efficiency, in 2021, this distributed ledger network will be something to look out for in the future of blockchain 2021.