Blockchain technology remains subject to a lot of hype. Finding real use cases for this disruptive technology is paramount. As that quest continues, several key trends for 2020 can be highlighted.
The Future of Blockchain and AI
On paper, this sounds like a very powerful combination of potent technologies. The decentralized nature of a blockchain combined with artificial intelligence has tremendous potential. At this time, integrating AI into consumers’ daily lives remains a major challenge.
Key hurdles can be identified in this regard. There is the growing volume of data associated with an artificial intelligence. Downsizing the data pool is not viable, thus other “delivery mechanisms” need to be explored.
This is where blockchain comes into the picture. It can be used to offload data storage over network nodes. Additionally, it can ensure the information is legitimate. At the same time, AI can improve the security and operations of distributed ledgers.
Commercializing such efforts is another key topic of debate. For corporations, this hybrid solution can offer a lot of benefits. Affecting the lives of consumers with blockchain and AI will be a completely different hurdle to overcome. More R&D efforts will become apparent in this space over the course of this decade.
Internet of Things Efforts
Connecting all of the device in the world with one another remains an intriguing option. As consumers connect more devices to the internet, that evolution is bound to happen soon. Sharing more information is online has its drawbacks. Both hackers and data-harvesting corporations will try to exploit this lax attitude.
Corporations also have to find new solutions to secure store data and information. A tamper-proof solution is preferred in this regard. For blockchain and DLT, this creates a lot of opportunities. They allow for permanent and auditable records that cannot be altered afterward.
Recent research by Gartner shows these efforts are already underway. The vast majority of firms embracing IoT technology already integrate DLT solutions. This progress has been achieved a lot quicker than most expected. It is another validation of the power of distributed ledger technology.
The Rise of new Financial Services
Decentralized finance is a relatively new industry. It primarily revolves around blockchain-based financial services and products. Known as DeFi, it is one example of what the future may hold for the finance industry.
Other than DeFi, blockchain can unlock a lot of different services and products. A proper decentralized clearing and settlement system is one option. Focusing on fraud reduction is another aspect to explore. Combined with smart contracts, digital transformation will be taken to new heights.
Adopting this new technology will be crucial. Several banks are openly experimenting with distributed ledgers at this time. Even insurers see merit in blockchain, for a wide variety of purposes. It is a form of technology that can provide financial solutions to unbanked and underbanked individuals.