Top 3 Blockchain Trends to Watch Out for in 2021

Following the remarkable growth in 2020, 2021 already indicates the intention to keep pace as it has opened to quite a pronounced start for cryptocurrency and blockchain.

What everyone hopes to be an eventful year for blockchain started with the crypto market exceeding $1 trillion in January hitting an all-time high. The occurrence immediately reignited the interest in blockchain technology, digital currency and decentralized finance.

Overcoming the challenges imposed by the global pandemic is at the top of the agenda for governments, industries and investors and the demand for digital multi-party access solutions is on the rise.

Digital Identity

For 2021 digital identity is on everyone’s radar. The pandemic has led to an increased consumer demand for digital identity solutions that stand up for user privacy and online security. As day-to-day activities continue to shift to online, digitalization accelerates across all sectors. The objective of establishing and maintaining trust between multiple parties is essential to the success of this process.

In 2021, trust will continue to be the key driver for blockchain adoption. While being critical to financial services, digital identity systems relevancy extends far beyond. Blockchain is expected to be the leading technology in achieving trust in healthcare and education enabling a more transparent, safe and stable environment.

With the release of HyperID in June 2020, Hypersphere is aiming to proactively address the demand for secure digital identity services.

Enterprise Adoption

In 2021, mainstream institutions along with traditional enterprises and service providers will become more open to the idea of cryptocurrency investment and experiments of permissioned blockchain implementation.

Considering 2020 wrapped with the insurance giant MassMutual purchasing $100 million worth of bitcoin and 2021 has marked the $1,5 billion bitcoin investment from Tesla, a more large-scale adoption is inevitably going to follow.

You can expect enterprises that have been looking past blockchain to no longer be able deny the benefits that blockchain brings to the table. Solutions built on permissioned blockchains and customized to accommodate corporate business needs will significantly contribute to the blockchain market growth in 2021.

Decentralized Finance

Vitalik Buterin, the co-founder of Ethereum, describes stablecoin as simultaneously DeFi’s most valuable and most boring invention. With a total value of over $25 billion, the growth of the stablecoin space is sure not to go unnoticed.

Stablecoins being a less volatile and more powerful tool for allocating capital to DeFi. In 2021 even more of the forward thinking enterprises will be diving into decentralized finance contributing to the development of the market and propelling scalable and interoperable blockchain technology popularized by DeFi to the forefront of the industry.

Even as the world continues to wrestle with the aftereffects of the greatest social and economic disruption of the 21^st century so far, the development and adoption of blockchain is steadily accelerating. The number of financial transactions outside of the traditional systems and legacy institutions continues to increase meaning crypto currencies, decentralized finance and the potential of the technology powering them can no longer be ignored. It is safe to say that the awareness of underlying systems has spread beyond the knowledge of the first-adaptor minority and is now gaining the long-deserved attention of the mainstream audience.

However, if 2020 has taught us anything, it is that we should always expect the unexpected.