While pandemic has disrupted the operations and development of multiple industries in its wake, there is different playing in the blockchain sector. 2020 has been kind to the distributed ledger technology, amplifying emerging trends and accelerating pilots into proper use cases in major sectors across the world.
Although the dwindling economy has led to budget cuts on the long-term strategic pilot projects, especially the ones that are involved in regulatory and market changes, the ones that displayed a multitude of benefits in the new normal era has been fast-tracked. There is a long list of companies lining up to integrate with blockchain network to streamline their supply chain and overall infrastructure, which has suffered due to the pandemic. With 2020 nearing a much-awaited end, here’s what to expect of 2021 for blockchain technology.
Market Projections for Blockchain Industry
Speaking of market projections, the blockchain global market is projected to surpass 57,641.3 million USD by 2025, at a CAGR of 69.4%. Some of the key industry players who will propel this growth are IBM, Microsoft, Deloitte, HashCash Consultants, BTL Group, Ripple, Global Arena Holding Inc., etc. Blockchain in the public sector is expected to push forward at the fastest CAGR of more than 70.1% with growing blockchain adoption in governmental institutions. The CAGR growth of the application and solution sector is projected at 71.2% with multiple benefits like minimal data duplication and timely authentication, which will contribute to market growth.
Digital identity application powered by blockchain across multiple industries is expected to propel fast in the coming years. While the small and medium enterprise sector has projected an expected CAGR of 70.7%, the financial service sector will dominate its highest share in the global blockchain industry just like the last 3 years. Along with that, the Asia Pacific zone is projected for the highest blockchain growth in 2021 and the years that will follow.
Blockchain Predictions for 2021
It is predicted that more than 30% of the ongoing projects will go into production and implementation, displaying a more realistic approach to the pilot projects. This acceleration owes to the increasing maturity of blockchain technology and the change of attitude towards the same. These are mostly the pandemic-induced adoption, acceleration, and launch of projects, especially the ones that guarantee benefits. According to experts, the majority of the networks that transform from pilot to production will be running on enterprise blockchain platforms.
Permissioned blockchain will remain the trend in 2021 because although multiple companies have been increasingly open about exploring the role and long-term implication of public blockchain on the company-specific operations, the rise of Decentralized Finance or DeFi has led to stalling of the adoption of a public blockchain.
China will rule the blockchain domain, as its new infrastructure for digitization has put DLT at the helm of all reformation. According to reports, the Chinese government will make significant investments in major provinces initiating a steady stream of blockchain systems going to the production stage. However, China’s ambition to offer a global public infrastructure through its very own global Blockchain Service Network is not expected to advance considering the current geopolitical climate. It does have plans to accelerate the growth and use the Chinese CBDC beyond its borders.
The crypto industry is poised for a great 2021, with this year advancing incredibly fast in digital assets adoption across geographies and the fact that a lot of companies and eCommerce platforms are now accepting crypto along with fiat with the rapid digitization happening in the wake of COVID-19. The world can expect some CBDC action in major economies as everyone is racing to launch a central bank digital currency, including the USA and the European Union. However, all that depends on the regulatory decisions and selection of a proper model for the CBDCs to work as an alternative for fiat.