Cryptocurrency has been on the rise for years. If you’ve been following it, you’ve probably come across the term ‘blockchain’ before. Blockchain refers to the technology that helps networks like bitcoin keep their records straight. Basically, it is similar to a database, capable of holding large amounts of information. However, while databases contain table-like structures, a blockchain groups data into blocks in order to hold collective information. Blocks have a limit to their storage. Once they are filled, they are linked, creating the blockchain. As with other innovations in technology, this one has improved over time. Here are some key trends driving blockchain development in 2021.

Federated Blockchains are on the Rise

A Federated Blockchain is a special form of the basic blockchain model. It is an upgraded type of blockchain that can be applied to various uses. This particular type of blockchain works with different authorities instead of going through a single, trusted node. Over time, more people will opt to use a federated blockchain because it offers more privacy. While this makes it similar to a private blockchain, there are a few more features available.

Change the Social Networking Landscape

A lot of people spend more time on social media than they do outside these days. A survey showed that the number of social media users reached almost 3 billion in 2019. By introducing blockchain to social media, there is a chance that some of the problems associated with social media can be resolved. These problems include privacy violations, data control, scandals, and the relevance of content. As such, integrating blockchain with social media is another trend to watch out for.

With blockchain, it is also possible to make sure that all the data published in a specific platform can remain untraceable. Additionally, people also won’t be able to duplicate it after it is deleted. Basically, users will feel more secure because their data will be protected.

Operating between Blockchain Networks

Blockchain interoperability allows users to feel the convenience of interacting from one blockchain to other blockchain networks. To put it simply, people have the option to share information and data through multiple blockchain systems or blockchain networks. This feature simplifies the process of seeing and accessing data from other, various blockchain networks. Furthermore, with this function, people can also do cross-chain transactions. Blockchain development in the near future will certainly leverage this ability as blockchain networks continue to grow in popularity.

Emerging Hybrid Blockchains

The use of a hybrid blockchain is quickly emerging in the industry. A hybrid blockchain works by using and combining private and public blockchain solutions. However, it still operates in a secure environment known as a closed ecosystem so that all of the data remains safe.

Creating Secure Digital Identities

Whenever we are on the internet, we leave behind digital footprints that can be traced. By having a digital identity solution that utilizes blockchain, your online precedence will be more secure, and you can avoid any crimes related to fraudulent transactions or identity theft. With blockchain technology, you can store data in a secure, decentralized manner. This way, blockchain technology can be used to make sure that your digital identity is kept safe and incorruptible while it is in storage. Furthermore, this digital identity can be updated with the latest information as it becomes available. As such, this solution is also growing for online platforms, and the trend will continue to rise this year.

In Summary

Thanks to the continuous innovations and discoveries related to technology, the many different possibilities of blockchain continue to grow. The internet becomes a bigger, more complex online environment daily, but there are also ways to keep your data and your privacy secure. With these current blockchain trends, we can see that there is an evolution in the industry as new technology continues to emerge. This brings with it advantages that include protection from various cyber-attacks, lower costs of transactions, a way to change some of the rules, securing data and ensuring confidentiality, and being able to operate in a closed environment. With the continued improvements, there is no doubt that blockchain technology will heavily impact different industries. If you’re into investments, financing, or banking, it’s essential to keep an eye on these trends and on the growing popularity of blockchain.

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