Cryptocurrency Trends To Watch In 2020 – For several years Cryptocurrencies have been making headlines. In 2019 the crypto market had new and inventive trading solutions. There were also new groupings and various blockchain protocols that come out and developed.
More global regulatory bodies have also started accepting Cryptocurrencies, and some are even developing their infrastructure. In 2020, there are cryptocurrency trends that you are likely to see. In this article, we look at some of the trends you should look out for this year.
State-Owned Digital Currencies
In 2019, there were signs that countries were working on their digital currencies. We expect this to gain impetus this year. Some states have made known their plans to launch their digital currencies.
Examples of countries that have publicized their intentions include UAE, Japan, Estonia, Russia, Sweden, and France, among others. The interest in Cryptocurrencies has been influenced by the efficiency benefits the states stand to benefit.
Even though many governments are centralized, it is believed that they are looking at decentralizing some aspects. Many governments aim to use the blockchain technology to handle data.
Decentralized Finance, also known as DeFi, depends on 2nd and 3rd generation “smart contract” blockchains. These blockchains have the capability to process more than the movement of Cryptocurrencies.
A smart contract is a kind of agreement written in code that ties parties together with rules that are implemented by the blockchain. With this technology, you can take advantage of services like decentralized lending, exchange, and derivatives contracts.
You should also expect to see more countries enacting laws around Cryptocurrencies and blockchains. This move is influenced by the fast maturity of the crypto space. Ahead of the pack is the state of Wyoming in the United States that has already enacted 13 laws around Cryptocurrencies and Blockchains
To prevent terrorists from funding their activities using this means, there is a need for appropriate legislation to be implemented. These legislations will help regulate crypto trading business enterprises and exchanges.
In 2020, Etherum is expected to continue its development in the second phase. In the next iteration, you should expect an end to the network’s use of energy-intensive proof-of-work. You will also see the introduction of a proof-of-stake consensus mechanism. To combat the network’s throughput and speed, this phase will introduce sharding.
The second phase of Etherum 2.0 will involve seven different stages implemented in several years. In 2020, phase 0, which is dubbed the Beacon Chain, will be released first. Developers will poke and put pressure on the network.
Corporations Will Not Be Left Behind
In 2020, you should expect to see corporations launching their decentralized ledgers and blockchains. There are big corporations that are already looking into digital assets. Examples of corporations that are said to have shown interest include Mitsubishi, Walmart, AirAsia, J.P. Morgan, among others.
Some prominent companies are already building their enterprise solutions on Etherum blockchain. Examples include ABN AMRO, Shell, Rabobank, among others. In 2020, more organizations and firms are expected to adopt Cryptocurrencies and blockchain technology. This technology will help them to improve their enterprise productions.