The four major blockchain trends will shine this year

The global market value of encrypted assets exceeded US$1 trillion for the first time, setting a record high. Government leaders and various industries have renewed their attention to blockchain technology and digital assets, and the topic continues to rise.

The four major blockchain trends will shine this year

At the same time, an official from the World Health Organization also claimed that fighting the new crown pandemic in 2021 will be more challenging than 2020. Inspired by COVID-19, a series of digital payment methods such as “digital assets” also occupy an important position in this year’s World Economic Forum Davos Agenda Dialogue. The world needs new digital solutions and information management methods. Improve the effectiveness of global cross-departmental communication and collaboration.

At the World Economic Forum, hundreds of experts from international organizations, governments, companies, civil organizations, and academia all over the world expressed their willingness to work together to link the unique emerging crypto world with long-standing traditional (financial) institutions .

The following are four major trends that are expected to help the crypto world build bridges with traditional industries during COVID-19:

1. Decentralized digital identity authentication: the epidemic is just an opportunity, and long-term deployment is urgently needed in the future

The epidemic has forced the digitization of the “online economy”, but it has also stimulated consumers’ personal privacy protection needs, and digital identity authentication technology has attracted attention. The globalization of the new crown vaccine, the globalization of immunization passports, and the urgent need to restore the world tourism industry, the current controversy over the transparency of vaccine testing and vaccination data, coupled with the huge difference in global privacy concepts, all of which make digital certification in the world Establishing a standardized system within the scope has become extremely difficult.

In addition, digital identity authentication technology has not only received attention during the global pandemic. This technology is closely related to many fields such as financial services and the job market, and the technical requirements are also different. If you cannot establish a flexible and comprehensive technical cognition from a higher perspective and take a long-term perspective, it will cause a lot of meaningless repetitive labor and a difficult-to-operate user experience, thus losing the precious opportunity to truly realize its value.

At present, only a small number of regulations and industry standards are sufficiently forward-looking at the beginning of their establishment to prevent identity authentication technology from developing behind closed doors in various industries, while retaining its privacy protection advantages, and promoting the technology to spread among various industries. The inclusiveness, interoperability and portability of. After the epidemic is over, the world is resonantly recovering. If digital identity authentication technology wants to develop smoothly, it is necessary to actively embrace digital certificate technology, learn from community experience, make a comprehensive and long-term layout, and establish good government relations.

2. The use and supervision of encrypted assets: mixed regulatory attitudes and small steps in sand table supervision

“2020 is the year when investment institutions have entered Bitcoin.” This general description originally appeared only in some authoritative analysis on crypto asset gatherings, but now it is adopted by major investors such as MassMutual and Square. Financial institutions and service providers may also invest or actually deploy encrypted assets this year to strengthen their trial and future use.

Encrypted assets have also participated in the internal process reform of some institutions. For example, in the Davos agenda group, Western Union CEO Hikmet Ersek demonstrated the company’s process of exchanging different currencies through the use of stablecoins, and the completion speed reached an astonishing “21 times/ second”.

COVID-19 has also promoted the exploration of blockchain technology in the digital currency of central banks. Countries such as the Bahamas and Cambodia have released the first national-level blockchain systems. The People’s Bank of China’s digital RMB DCEP has continued to make progress. The People’s Bank of China has completed pilot projects in Shenzhen, Xiongan, and Suzhou, and processed 1.1 billion RMB in 3.1 million transactions.

Nevertheless, many governments and central banks, including the Federal Reserve and the European Central Bank, are still discussing the potential of central bank digital currency (CBDC), but have doubts about its value. Driven by decentralized finance (DeFi) and institutional interest, many people are still paying attention to the growth of the stablecoin field, which currently has a total value of more than 25 billion U.S. dollars. In contrast, regulators are paying more attention to crypto assets, such as the controversial US “STABLE Act” (STABLE Act) and the Office of the Comptroller of the Currency to issue explanatory letters authorizing banks to use stablecoins. In the future, the world will gradually launch long-term and frequent supervision and attention on cryptocurrencies.

3. NFT improves wealth diversity and inclusiveness: the first to confirm digital content rights starts with artworks

The topic surrounding NFT has been around for a long time since the birth of CryptoKitties. However, this non-homogeneous token has only been fully used in the game industry, and the application in other fields is still slow.

But from the perspective of public opinion, everyone’s imagination on the field of NFT applications is also very rich and active. Earlier, there was heated discussion about the democratization of high-value assets by NFTs (such as encryption art). Despite its huge potential, the issue of how to prevent piracy and protect the rights of creators has not yet been resolved. In addition, black artists play an active role in helping crypto art acquire greater property ownership, create wealth, and increase artistic exchanges within the permitted scope. Discussions about NFT have also emerged in the field of music and literary works.

4. Decentralized infrastructure: gradually expanded infrastructure and changes in attitudes of mainstream institutions

Nowadays, the role of centralized platforms and cloud service providers in people’s lives continues to increase, and concerns about their excessive power have gradually expanded from the initial encryption and blockchain fields to the mainstream. Recently WhatsApp and Signal are changing their privacy policies to force data sharing with the parent company Facebook. These changes have confirmed this concern and led to an increase in demand for decentralized services.

In 2020, the Filecoin mainnet of Protocol Labs was launched, which attracted attention for a while. The number of Web 3.0 projects such as Keep, Oasis and Polkadot is also growing. The public cloud market is one of the most highly concentrated markets in existence, with four providers (Amazon, Microsoft, Google, and Alibaba Cloud) controlling 80% of the market. Distributed storage is undoubtedly the only alternative that may challenge this status quo. With the advancement of artificial intelligence (Artificial Intelligence), distributed storage will lead to a significant expansion of the scope of human-computer interaction and accelerate the transition of the entire industry to Web 3.0.

Although many industries are still recovering from the impact of COVID-19, the entire blockchain ecosystem has always developed rapidly. It is encouraging that the awareness of distributed systems has expanded from a niche area to a mass field, and people’s attention to decentralization is also increasing (although the Bitcoin price index is still the reason most people pay attention to this field. ).

There is no doubt that the development of digital assets will allow encryption and blockchain technology to receive continuous attention from global regulators and policy makers. The expanded scope of market integration is also very likely a sign of increased market maturity.

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