2019 was a phenomenal year for the growth of cryptocurrency and blockchain adaptation and development. We saw the birth of new unions, new cryptocurrency trading features with Bitcoin and Ethereum survived the bear market. Interestingly, even China has stepped in the blockchain race in full force by spending billions on innovation.
Here we are already in the year 2020, surely there are a lot of expectations and things to look forward to in the crypto space. This year will be the period where the crypto community will see on not just the future of cryptocurrency, but blockchain and the acceptance of the very idea of decentralization.
So, here are 10 top predictions for blockchain technology in 2020.
1. Launching of Facebook Libra Project
Despite a huge resistance from the regulators this project had to endure, this year we will be able to witness the official launching of Facebook Libra. However, it is expected that the project will be launched with very limited functionality.
2. China’s Central Bank Digital Currency
China’s Central Bank Digital Currency (CBDC) is expected to arrive this year. The country is known to be one of the most active players in the crypto space, and President Xi Jinping’s call for increased effort in blockchain has led to massive investments and blockchain research work.
3. The Rise of Proof-of-Stake (PoS)
Vitalik Buterin and Ethereum are known to be the early adopters of the concept of Proof of Stake, and now there are tons of projects utilizing stake-based validators to uphold blockchain networks. PoS is better in terms of low energy consumption, as there is no need to strongly compensate network users for creating new tokens.
4. The Growth of Lightning Network
Lightning Network was invented initially to rapidly improve the prevailing Bitcoin transaction speed and lower fees. It is predicted that in 2020, there will be more applications, channels, and nodes created on the lightning network.
5. Increased Adoption of Stablecoins
This year, we will see increased adoption of stablecoins and mostly fiat-backed, driven from trading on exchanges. Projects like Fnality and J.P. Morgan’s stablecoin will become live. Even now the dollar-backed Tether $USDT is the most volatile cryptocurrency asset.
6. Expansion of Decentralized Finance (DeFi)
Currently, we have a little over $290 million locked in the various applications living on the DeFi ecosystem. This number is mostly due to the growth of Maker DAO and Dai stablecoin, but there is an expansion of decentralized exchanges, prediction markets, and lending/borrowing applications.
7. Ethereum 2.0
The long-awaited Istanbul hard fork—the final hard fork of Ethereum 1.0—has successfully deployed, and Vitalik Buterin has already released a block explorer for the Proof of Stake Beacon Chain, and the march towards Ethereum 2.0 is proceeding at a rapid pace.
8. U.S Blockchain Race with China
In January 2020, a new suite of regulation will come into effect that represents a sharp about-turn by the Chinese government towards a pro-blockchain and cryptocurrency stance. Besides, China Central Bank Digital Currency is also on its way. The United States will have to keep up, or they will lose this blockchain race.
9. Music Will Lead Blockchain-Based Apps
In 2020, Blockchain’s impact on art, music, and creative space is expected to be big. In a 2014 report, The Fine Arts Expert Institute (FAEI) in Geneva stated that over 50% of artworks it had examined were either forged or not attributed to the correct artist, which is very much fixable, with blockchain.
10. Regulators Are Going to Regulate, Anyway
Wyoming already has 13 pro-blockchain laws, with the separation of digital assets into three distinctive categories, and blockchain technology does not seem to go unnoticed. Other countries’ regulators are expected to start learning from it and start writing guidelines and laws on crypto and blockchain before it’s too late.
Our Two “Sats”
In conclusion, 2020 is going to be the year that shapes up the importance of blockchain technology as well as digital ecosystems. It is likely to be a crucial year for the crypto community in general, with many exciting adoptions and things happening for us to look forward to.
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Nurul is an English Language graduate who is highly passionate on writing, she literally breathes on it. An avid reader and a critical thinker, she covers on blockchain news during day and weeps at sad novels at night.