Forbes: 5 major trends in blockchain and distributed ledger technology in 2020

Source | forbes
Compilation | Zhang Tao
Editor | Carol
Production | Blockchain Camp (ID: blockchain_camp)

Although the media's enthusiasm for blockchain, bitcoin and distributed ledger technology has begun to fade, in the past year, major companies have continued to develop and deploy related technologies. Analysts again emphasize that blockchain is one of the top ten technology trends in the coming year (2020) , so companies will still keep their focus on related technologies this year.

Many people have a misunderstanding about blockchain and distributed ledger technology: that is, " blockchain and distributed ledger are past technologies. " In fact, the development of blockchain is still in its infancy , and only a small number of companies have successfully used it and achieved mature operations.

In the future, blockchain technology will be closely linked to emerging technologies such as artificial intelligence and the Internet of Things. Here are the technology trends predicted by researchers in 2020.

First, financial services are still in the early application stage

Blockchain technology first appeared in the form of digital cryptocurrency (Bitcoin), so the financial industry is also the earliest and most interested in blockchain technology. Subsequently, the financial industry began to widely innovate in blockchain technology and applications. And breakthrough. Related activities are no longer limited to the concept of virtual currency. Blockchain has begun to be used to construct fraud-proof clearing and settlement systems, smart contracts, etc., which has greatly accelerated the speed of digital transactions.

IBM says it has helped launch more successful blockchain initiatives, predicting that financial services institutions' investment in blockchain technology will continue to increase in 2020. Analysts also predict that banks may gain more than $ 1 billion in value by using blockchain technology in 2020.

The value of blockchain technology doesn't stop there. Blockchain is of undeniable value to industries that need to keep transaction records secure and track transaction activity . Current projects include tracking the origin of agricultural products and livestock, and even the origin of diamonds and other gemstones can be identified.

Libra is still in progress

Facebook plans to release its own cryptocurrency, Libra, in early 2020. Although most details have not been announced, it has caused some concern and concern. As of now, there have been many cryptocurrency projects. Since the advent of Bitcoin in 2009, more than 1,000 cryptocurrency projects have been launched, but most of them have failed quickly. A company with a background and size like Facebook has never launched a digital currency project-this factor means that the significance of this cryptocurrency project may far exceed all previous cryptocurrency projects.

However, the project has not been smooth. At the end of 2019, Mastercard and Visa both announced that they would withdraw from the project due to regulatory uncertainty. This is deadly for most commercial companies, but Facebook continues to push the project under tremendous pressure.

From a technical perspective, Facebook's Libra project is different from Bitcoin and most digital currencies. The Libra blockchain network is centralized and authorized to run by the association. Related cryptocurrency issuers consider Libra to be a non-distributed, non-trusted system. But once it is realized, it may become the first virtual currency to break the existing currency-based global currency system.

Blockchain and artificial intelligence integration development

Since artificial intelligence decisions require a large amount of data, one problem encountered when integrating artificial intelligence into life is that artificial intelligence is very complex and difficult to understand . Some people think that blockchain can provide a solution to this problem because it can track decisions and ensure that decisions are made based on verified and verifiable information.

Blockchain technology can increase the use of artificial intelligence, which can make the blockchain more secure, and at the same time, blockchain-based tools are easier to operate.

By incorporating these breakthrough technologies, companies can make forecasts faster and more accurately, reduce waste from the generation process, streamline the supply chain, and match products and services to emerging markets faster. As the value of technical collaboration becomes more and more obvious, such innovations will surely increase in 2020, and the first platform from the cloud service provider that integrates blockchain and artificial intelligence will also come out.

Fourth, the blockchain ensures the security of the Internet of Things

The more connected devices we use in our daily lives, the more data we generate, and the more opportunities for attackers to hijack this data. With the digital transformation of industry, more and more work involves communication between machines, so it is becoming increasingly important to store and record information in a reliable , tamper-resistant manner.

Blockchain and other forms of distributed ledgers provide nearly perfect solutions today. Every transaction information is permanently stored and transparent to all parties involved-a necessary factor for companies that rely on machines, tools and software from different vendors. In other words, if you make a mistake, you can easily understand what is wrong in the communication, and you can even find leaks caused by malicious third parties.

Analyst research shows that 75% of companies have adopted IoT solutions integrated into the blockchain, or plan to adopt related solutions in 2020.

V. Blockchain legislation

Wyoming has become the first state in the U.S. to explicitly allow blockchain innovation through a legal framework that provides regulatory oversight to protect potential dangers.

Since the emergence of the first cryptocurrency, the anonymity and digital transfer of value between people has been realized, and regulators and central banks have quickly realized the potential of related technologies in money laundering and other malicious financial activities.

Because of these considerations, digital currencies have not become the mainstream use method. The Securities and Exchange Commission (SEC) has been rejecting the application of publicly traded financial instruments based on cryptocurrencies.

The law passed in Wyoming has not changed that. But the issuance of 13 laws to provide a legal framework for blockchain and digital currencies has released a signal that regulation should be a promoter of technological innovation and not a stumbling block. In 2020, researchers predict that lawmakers in other states and other countries around the world are paying attention to Wyoming and may become its successor.