Since last year, blockchain innovation has been used around the world in various industries to make life simpler, much safer and easier for businesses and people. This year the technology would be widely used for more transparent supply chains, central bank cash, NFTs and BaaS.
The blockchain entered the mainstream in 2008 when a white paper was launched by the developers, apparently working under the pseudonym Satoshi Nakamoto, established the model. It expanded from there, and in 2009 the blockchain was first developed into a public ledger for cryptocurrency-related transactions. In 2021, blockchain as an idea is expected to be more widely used in markets beyond cryptocurrency all over the world for a variety of functions.
Both before and since the pandemic, businesses and people have indeed arrived at many uses of blockchain beyond cryptocurrency, from the simplification and security of online transactions to the structuring of the transport of goods, and even to the security of the food we consume. In a nutshell, blockchain is important for any type of transaction where values and time stamps need to be firmly recorded on tape, which is of particular interest to money service businesses. It is also potentially beneficial for all processes that involve tracking the flow of information between parties, so that it has applications across trade, supply chain, logistics, and provenance.
Supply Chain Optimization
There are many barriers within the supply chain industry, especially in the movement of goods and logistics. These industries are known for their paper-heavy procedures and face many difficulties in day-to-day operations. Optimized supply chains are not just cost-optimized shipping of items or raw materials from location A to B. With digitization and the desire for transparency across the supply chain, a uniform system is needed to map each excellent as a digital twin and buy it completely in a reliable and distributed database.
That said, long distances, diverse games, large volumes of files and information, and mutual trust can be effectively mapped digitally with blockchains. As a distributed ledger, the technology is preferably suited to recording and maintaining large volumes of information and granting access to each information to a predefined target group. All transactions that occur are kept in the central journal, which is not centrally stored anywhere. The combination of distributed ledger technology in supply chain management is one of the main blockchain trends this year, according to specialists, because on one hand, the demand for consumer transparency is increasing and on the other hand, barrier-free supply of products are everywhere. all borders guarantee greater security and financial stability.
Introduction to Central Bank Digital Currencies (CBDC)
The digital reserve currency was currently a big topic in 2020 and while China is keen to play a pioneering role worldwide in reserve bank liquidity, Europe and the UK have in fact so far adopted a fairly careful method of solving the problem. To date, China currently has a digital e-yuan centrally controlled by the federal government. The best suited technology to deliver the CBDC is the Clearly Distributed Ledger Innovation. While the reserve bank would control the issuance of CBDCs, the network would collectively validate transactions. This allows transactions to be processed even when individual operators or nodes are down, including there serve bank. The blockchain would record all transactions immutably and ensure the stability and efficiency of the network.
Blockchain as a service (BaaS)
The design of distribution as a service has actually been key to the rapid adoption of technological trends, including cloud computing, Internet of Things (IoT) and Artificial Intelligence (AI). Blockchain is likely to be next, with companies consisting of Amazon, IBM, and Microsoft all offering or developing tools and platforms that allow businesses to leverage innovation without investing in them upfront. facilities and skills.
BaaS – a cloud-based service that allows users to establish their own digital assets on the blockchain – has grown in importance in 2020 and is used by many start-ups and businesses. The digital elements can be smart contracts, dApps (decentralized applications), or other services that can operate without blockchain-based infrastructure configuration requirements.
The Rise of NFTs, AKA Non-Fungible Tokens
NFTs are the current trending topic at the moment. Non-fungible tokens are essentially digital properties (photos, music, source code, agreements) that live on a blockchain and therefore can be considered to be of value due to their originality. Known as “digital antiques” to some, they cannot be simply duplicated and copied, bringing into play for the first time the financial principle of scarcity in the realm of digital possessions. Think of it this way: If Bitcoin tokens are like blockchain verified dollar costs, then NFTs are like blockchain verified works of art.
In the short term, NFTs are producing whole new ways for some industrious people to make a lot of money. An example would be, artist Grimes who sold artwork as NFT for US $6.6 million, and the NBA which generated $230 million in sales of basketball music videos in its Leading Market. Even Twitter’s Jack Dorsey offered his very first tweet for $ 2.9million. To date, the majority of NFTs are attached to collectibles such as digital art and virtual goods in computer games, but they could expand to include more digital properties. ownership, event ticketing, brand licensing, and even real-world asset tokens are also all possible use cases under investigation.