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Best Blockchain Trends of 2021

Cryptocurrency is one of the most talked-about topics these days. The crypto world is developing all the time and new trends are surfacing every day. These trends can be influenced by many different factors: acceptance of bitcoin by a major company, the launch of digital currencies like eKrona blockchain by governments, news of hacks and breaches in crypto exchanges. 

Any investor or enthusiast in cryptocurrencies needs to keep up to date with the latest trends. Both because these trends help predict the market, and also because they are so interesting.

However, though most people interest in cryptocurrencies. Few understand the underlying blockchain technology that powers these digital coins and their importance.

Blockchain is the digital database that spread across many computers where the data process and then store in blocks. These blocks is add together to form the blockchain. The computers that host the blockchain belong to common people.

The data does not reside in the hands of anyone company or organization. This democratization of data enables (i) greater transparency and (ii) makes the database more resilient to cyberattacks.

Even if one computer loses its data due to a cyber-attack. The amount of data involved will be a very small portion of the total data on the blockchain. If any effect on the system compare this to the traditional method of storing data at a centralized data center.

If the data center is compromised, all the data may be lost or damaged. Because of these advantages of blockchain technology, it has applications in many fields. In 2021 we are seeing the following trends in the blockchain.

Supply Chain:

Modern supply chains are complex, cumbersome, and have very little transparency. Because of their vertical structure, any one entity in the supply chain can see only the data from the entity above it and have little idea about the whole process.

Likewise, the companies or organizations have a very limited view of the processes down the chain. Everyone has a very limited view of what is actually happening.

Blockchain offers a way to make this data visible by storing. It in a decentralized location and sharing the copy of the data with everyone involved. This can help entities lower in the chain to foresee upcoming challenges and potential shortages and take necessary steps.

On the other hand, the entities up the chain can ferret out the problems and inefficiencies in the supply chain and work to resolve them. Further, the robustness of blockchain ensures that this data remains secure and prevents any disruptions in the supply chain.

Blockchain’s use in supply chains holds promise in many sectors like pharma, retail, and banking. Blockchain will enable end-users to pick up a product and see information about. Where,  and when it was produced. How it was packed, shipped, and stored, as well as detailed information about its ingredients.

In the ongoing Covid-19 pandemic, vaccines are proving to be the best method of defense against the deadly virus. However, supplying all these vaccines to remote parts of the country is proving to be a challenge in the face of the limited supply. 

Blockchains can provide a solution to this problem by making the supply chain. Visible to the authorities who can then take steps to rectify any problems and inefficiencies they find. IBM already has a system for this and is talking to pharmaceutical companies to launch it.

Industry Services:

Considering the security that blockchain provides, it is obvious why different companies are thinking about adopting blockchain technology to store their data.

The foremost among these is the financial services industry. which is looking to manage its complex supply chains and protect its sensitive data. According to CB Insights, blockchain-enabled decentralized ledgers could mean faster transactions and lower fees and enable real-time transactions between financial institutions.

Digital Tokens:

NFTs or Non-Fungible Tokens, besides cryptocurrencies, are probably the most talked-about among all other blockchain applications. NFTs are digital assets that have a unique value assigned to them, making them unique. 

Most digital assets can be copied, however, tokenization through blockchain prevents copying or duplication and thus introduces the factor of a rarity in the digital world for the first time.

While now this applies to things like digital artworks or videos, in the future tokenization.  Will mean that we really own the digital assets, like music, eBooks, and movies, instead of just having a license to use them like we currently do. 

Digital Currencies:

While cryptocurrency is already established, now central banks in many different countries are coming up with their own digital currency which is digitized versions of their national currencies like the eKrona blockchain.

The advantages of having a digital currency are numerous, including easier transactions, faster international transactions, and tracking to prevent money laundering.

Identity Management:

Tokenizing one’s identity through blockchain technology can help improve the privacy of the people. Instead of presenting our driving license and giving someone all the information about ourselves. We would be able to manage our credentials and show only that part that is required for verification at that point.

These are just some of the upcoming trends in blockchain in 2021. Blockchain is a rapidly developing technology and we are sure to see more and more benefits as time goes by.

 

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