The applications of blockchain have been incorporated within business solutions for ensuring more security. Although people might only be familiar with implementations of blockchain in the field of cryptocurrency, enterprise use and various formats of technology have developed. They will proceed to advance in the upcoming years.
Owing to the applications of blockchain, various market research companies have conducted optimistic blockchain predictions for the upcoming years, that might be accurate. However, a plethora of factors falls into place. Read on to know more.
As per market reports, the blockchain predictions for 2021 reveals notable findings highlighting that 2020 has remained an imperative year for development within the distributed ledger and enterprise blockchain technology space.
The predictions for blockchain technology are based on inflexion points that highlight particular transformations other than the proceedings of trends. For example, analysis reveals that 30% of international projects will make their way into production in 2021. It is mostly because of the impact of the global pandemic.
The maximum of the live blockchain-based systems today go through a particular factor: less time incorporated for resolving discrepancies. In many cases, it could just be an example. It is this common factor in the replies to supply chain applications along with financial services.
It is not only about requiring lesser people to accomplish particular tasks. It is originally about shortening the time passed and freeing up liquidity. The fact that it is possible to make that happen now refers to the key point in the context of prevailing operating models and processes.
Development Demands Time
With that being stated, the long-term strategic plans within the financial services appear to revolve around possible changes within operating models and market structures. Various cases, among these, demand regulator transformations. It, in turn, demands effort, resources, and time. It is one of the primary reasons why pandemic related uncertainty and volatility has led various banks to pull back from the best long-term DLT related projects in the meantime.
As per reports, approximately each of the initiatives ready to proceed from the pilot project into production for the upcoming year will continue operating on enterprise blockchain platforms that use cloud services. Most likely, this includes solutions from various companies throughout the globe.
Raj Chowdhury, CEO of HashCash Consultants, spoke about forecasting 30% of enterprise-related blockchain projects and their consideration of moving into production by 2021.
He commented, “Because of the increased pandemic strain put on the supply chain, consumers are looking forward to enhancing their digital transformation stronger than ever before. We are witnessing the expansions of both new and existing projects. The flourishing ones are underpinned by robust business use cases and come with clearly defined significance that it adds to the business.”
Significant Technical Predictions for Enterprise Based Blockchain Technology – Zero-Knowledge Proofs
As per research, from a technical perspective, the most significant prediction, listed in various reports, refers to the increasing demand of zero-knowledge proofs. Zero-knowledge proofs are required due to problems with preserving confidentiality that happens to be presently holding the projects back. Reports additionally outline the problem that zero-knowledge proofs can solve. Before delving deeper into the technical predictions for enterprise based blockchain technology, let’s understand zero-knowledge proof in a better manner.
- What do you mean by a Zero Knowledge Proof?
A Zero-knowledge proof refers to a digital protocol enabling data to be shared in two parties without the application of a password or any additional information linked with the transaction.
With that being stated, a zero-knowledge proof, also known as ZKP, can be considered as a protocol that facilitates the digital authentication process without using any sensitive data or password. Due to this, no data, both from the receiver’s and sender’s end, can be compromised or tampered with any manner.
It is pretty beneficial, particularly because this level of safety offers technology enthusiasts an avenue to interact with one another without requiring to reveal the interaction content with third parties.
The concept underpinning zero-knowledge proofs initially dates back to 1985 when the developers Silvio Micali, Charles Rackoff and Shafi Goldwasser presented the globe with the idea of knowledge complexity. It can be referred to as a concept that is a precursor to zero-knowledge proofs.
As the term suggests, knowledge complexity serves as a metric standard for determining the amount of knowledge needed for transactions between verifier and prover to be considered legitimate.
- Where is Zero-Knowledge Proofs Employed?
Government enterprises utilize zero-knowledge proofs for determining the source of certain information without having to prove the details of the information.
From their starting, zero-knowledge proofs have been utilized throughout a wide assortment of digital fields. For instance, analysts have utilized this technology to create new digital identification methods that do not demand users for revealing any sensitive data associated with the same.
Moving Forward with Technical Predictions
For companies that do not want to depend on established encryption methods, the exclusive options highlight keeping only hashes on-chain or utilizing constructs similar to selective replication or personal data collections. For many situations, prevailing methods also do not consider exposure problems arising from metadata.
Recently, progress has been made around zero-knowledge proofs. For instance, zero-knowledge proof projects are being developed by various organizations. Many among them utilize privacy software that enables private blockchain-based transactions utilizing zero-knowledge proofs. The biggest priority of those organizations in the upcoming years is to make such software, and zero-knowledge proofs simpler for developers to utilize.
- Challenges Involved
The significant challenge in implementing and utilizing zero-knowledge proofs is that they are pretty more complicated than coding a smart contract other than privacy. It can be compared to adding encryption and SSL to web pages during the early days. It is not something that people learn about while they understand solidity development, and, presently, it is not as simple as it could be to apply.
Public Blockchains and Decentralized Finance Predictions
As per reports, it is also forecasted that decentralized finance is likely to harm public blockchain adoption. With that being stated, enterprise technology leaders now happen to be open to discussing the importance of public blockchains. Regrettably, the advancement of decentralized finance during 2020 gives rise to unquestionable activities throughout public networks. It has reassociated cryptocurrency with public blockchains and will proceed to drive risk-savvy decision makers and compliance away.
Organizations soon will view public blockchains in the same manner as they do the web. With each passing day, a lot of mindshare is ready for grabs as enterprise decentralized finance becomes more of a reality.
While the decentralized finance space may resemble the initial coin offering madness of 2017, it is quite different within the decentralized finance that illustrates the importance of smart contracts concerning Financial services.
With that being stated, the field of decentralized finance is expected to make enterprises cautious about public blockchains shortly. Still, with the maturity of the Defi space, public blockchains are likely to prove as a better use case for the financial world. Suppose you choose to look at centralized finance from another perspective. In that case, it reveals how blockchain can be utilized for financial use cases, which can be considered as the missing piece for use cases related to enterprise blockchain.