How will enterprise blockchain platforms address the change due to the Covid-19 impact? Some predictions are on top of the discussion in 2021.
Although the future is very unpredictable, Covid-19 has undoubtedly fueled the rapid growth of digitalization in 2020. Over the past year, many organizations have had to change their survival plans and reorientate the strategy. In 2020, enterprise blockchain platforms also suffered from the pandemic effect when investment budgets for new projects of many businesses were cut off.
In 2021, while covid-19 will continue to be the central driving force of the forecasts for the world’s development trends, forecasts for the blockchain for business will be more stable, with confidence emerging as the main topic. However, the budget restriction for new blockchain R&D projects will force enterprise blockchain platforms to change their market approach. Below, we will look at the prominent predictions for the enterprise blockchain landscape in the next year.
Cut off in R&D budget. Covid-19 will further accelerate existing projects but slow down the experimental and speculative projects of many organizations.
Finextra predicts that more realistic and pragmatic approaches to blockchain initiatives will dominate the enterprise blockchain market structure when most of the budget goes to pure R&D projects — which are separated from business operations — has been reduced.
Accordingly, long-term strategic projects, especially projects that require a change in market structure or regulation, will be significantly lengthened. In contrast, the verdict of enterprise blockchain about the refinement of efficient projects akaChain mentioned happened. Projects with clear benefits are not only continuing but also implementing at a faster pace. The number of companies interested in joining networks that help solve some specific problems plagued by the pandemic has also increased.
Financial blockchain projects continue to occupy the market
Covid-19 has deeply affected all industries. In which, finance is an area that is particularly heavily affected when profits drop and profit margins are tightened. Banks are forced to adapt to the situation and ensure profitability by effectively optimizing the response to customer needs with personalized digital services.
Combined with other technologies and techniques, blockchain is showing many benefits in terms of contactless financial performance. In particular, the transparent storage of data and security in online transactions is the great advantage of this technology.
It is not difficult to predict that blockchain in finance will achieve exponential growth, and finance will continue to be the leading market for enterprise blockchain platforms’ applications.
Supply chain will go after banking and finance to dominate the enterprise blockchain market
Although AI, IoT, and technology automation have great support in the operations of supply chains, we often encounter fragmentation between systems. The reason is the lack of transparent interconnections between systems and devices. This fragmentation has highlighted the relationship between digital readiness and business resilience.
The implications of blockchain on supply chains are becoming increasingly apparent. More and more food, pharmaceutical, automotive, and high-value businesses (such as real estate, diamond) supply chains (such as real estate, diamond) use blockchain to track production and distribution.
Accordingly, IDC predicts the manufacturing and resources sector will see the fastest blockchain spend growth in 2018–23 with a 5-year CAGR of 60.5%.
The move of governments in the face of blockchain development
Governments play a major role in making policies, regulations, and direction for technology development in countries.
For blockchain adoption, Identity Management use cases will receive significant investments from the Banking, Government, and Healthcare Providers industries.
In Asia, in recent years, governments of many countries have implemented various digital identity programs, such as Singpass from Singapore, ThaiID from Thailand.
In China, the government has an important goal in blockchain development that will be helping to make the existing monetary base digital. Many different sectors have also started adopting blockchain. They use the technology to resolve court disputes, draft billing standards, to track the transportation of luxury goods.
Meanwhile, the UAE government has launched “UAE Blockchain Strategy 2021” which aims to conduct 50% of government transactions at the federal level using blockchain technology by 2021.
His Highness Sheikh Mohammed said that “adopting blockchain will help the government prepare for future challenges and contribute to saving AED 11 billion ($3 billion) in annual spending on document and document transactions, 77 million hours of work, reduced by 389 million government documents, and saved 1.6 billion kilometers of driving.”
Resolving doubts about private blockchain projects. Are they flexible enough?
The private blockchain is the pathway for many solutions for businesses today. However, many people suppose that when using a private blockchain, we will lose the security, immutability, and transparency as in a public blockchain.
This is likely to be a concern that blockchain service providers need to address when approaching and proposing service solutions to their customers.
Currently, many enterprise blockchain platforms have chosen hybrid blockchain to address this issue. Accordingly, with the hybrid blockchain network, transactions on private networks will be processed, encrypted, and stored on the public network to ensure transparency and security.
2021 will be a pivotal year in the development of blockchain.
IDC estimated that next year, at least 25% of Forbes Global 2000 will use blockchain as the foundation for large-scale digital trust.
The size of the global blockchain market is expected to expand from $3.0 billion in 2020 to $39.7 billion by 2025, with an Efficient Composite Annual Growth Rate (CAGR) of 67, 3% in the period 2020–2025.
Says James Wester, IDC’s Research Director for Worldwide Blockchain Strategies. “This is due largely to the unique characteristics of blockchain technology such as decentralization, transparency, and redundancy. These are traits that many existing technical approaches in supply chains, healthcare, and financial services lack today.
The developed project blockchain is moving into the efficiency measurement stage. We will witness a clearer change in the blockchain that applies trends to daily business operations.
Staying up-to-date and understanding global market trends has helped akaChain’s blockchain developers and clients from many industries achieve better results when implementing related projects.
Our clients are cautious people. They’ve chosen to use akaChain’s blockchain platforms and verified the results.
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akaChain is backed by FPT Software, a globally leading technology, and IT services provider. It is an end-to-end, permissioned, multi-chain network based on the Hyperledger Fabric. Since its establishment in September 2018, akaChain’s product has assisted many enterprises, from SMEs to Fortune 500 firms, to transform with distributed ledger technology. The company provides a broad range of permissioned blockchain-based products and services in multiple sectors, including retail, supply chain, banking and finance, insurance, shopping mall management, etc. to transform with its distributed ledger technology. For more information, please visit https://blog.akachain.io/.
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