“Blockchain Technology Could Save Banks $12 Billion Per Year.”
This quote from Mohsin Jameel sums up the entire blockchain phenomenon. Blockchain will save resources across many industries and make processes cost-effective. From finance to supply chain, blockchain has been making strides. The blockchain industry is maturing and has now paved the way for better innovations – from digital banks (making physical banks redundant) to social networking.
As with all transformative technologies, demand for blockchain professionals will increase. Here’s how blockchain will shape 2020 and years beyond.
Neobanks will gain traction
Ever since blockchain was introduced to the public, most of the talk has been how blockchain will reduce costs across the finance industry. Most prominently — reduce the cost for cross-order payments. In the future, blockchain, with neobanks, will give finance a facelift.
Neobanks put DLT (Distributed Ledger Technology) to use and offer fast crypto to fiat exchange. They also allow crypto investment to make money and facilitate crypto fiat exchange seamlessly.
Federated blockchain will rise
Blockchain is notorious for power consumption. One of the ways it could be made to consume less power it by reducing the number of nodes that validate a transaction. Federated blockchain does so. It isn’t a new concept.
Federated blockchains have emerged from original blockchain, where multiple parties can control a pre-selected node to validate a transaction. This type of blockchain comes handy, better scalable, uses less energy, and reduces transaction costs.
In 2018, ICOs were a rage. However, seeing potential risks in ICOs, they have lost their appeal among investors. STOs (Security Token offering) is gaining pace. With STOs, assets can be converted into securities and traded on exchanges. ICOs lack regulations, while STOs are easily regulated by financial institutions under securities laws. Asset tokenization will, therefore, prosper. Though STOs are still in nascent stages as investors equip themselves with knowledge.
Recently, major social networks have faced security attacks and data breaches. Blockchain technology’s decentralization feature will make social networking more secure and less vulnerable to data breaches. Several Distributed Social Networking (DSNs) will come up. The likes of, for instance, Diaspora, Minds, etc. will grow. Unlike Facebook, and other mainstream social media networks, DSNs are more secure, largely ad-free, and offer options to monetize content.
Conclusively, blockchain technology will pave the way for better social media networks.
Ballooning job market
Corporations are steadily realizing the benefits of blockchain. Most corporations like Walmart are in implementation stages to put blockchain to use. Similarly, smaller corporations, small-medium sized companies are getting on board, driving demand for blockchain professionals.
Further, as businesses look for well-equipped professionals, this will drive blockchain education through soaring online courses, university programs, and blockchain certifications.
Pay for Web 3.0
So far companies have relied on free and open-source soft wares. In fact, according to a Black Duck software report, 78% of companies rely on open source soft wares. Open-source software organizations have been living on thin margins which mostly come from donations, discouraging developers and contributors.
Blockchain has made attempts at making open source more economically stable. Developers and contributors will be asking for top dollars for their contribution and development. Using Web 3.0 applications may turn expensive.
In a nutshell, blockchain will thrive in ways unexpected before. While some trends like asset tokenization have already picked up the pace, DSNs are yet to gain momentum. Blockchain has proven beneficial to the industry in multiple ways. Mainstream applications remain to be used on a large scale. What the future holds for the blockchain is clear, but how far and large it will go only business profits will tell.