Dear Blockchain Enthusiasts,
June is here. Earlier this year, most of us thought that COVID-19 pandemic is subsiding, but a lot of countries are now facing another wave of cases. We’d like to remind everyone to take extra precautions and keep yourself safe. With the pandemic, we have to expect the unexpected but let us look at the expected blockchain trends said to bloom in the next coming months and whether these trends are already happening in the blockchain scene.
1. Growth of global blockchain market.
It was expected that the blockchain market to experience growth this year, but not this big! The pandemic has definitely encouraged global businesses to adopt blockchain in their business operations, especially the use of distributed ledger technology.
Businesses now understand the need for digital transformation to ensure competent functionality and business survival. Working from home is now a norm and having a trusted and reliable digital medium to monitor businesses performance is definitely a necessity to businesses.
This trend is already happening and we foresee that this will continue to escalate.
2. Decentralized Finance (DEFI) services.
We have definitely see growth of DEFI services even before the pandemic hit us, but with the pandemic, DEFI services is stimulating the financial technology landscape with its major advantage, which is cutting out intermediaries, thus ensuring open finance that summon more direct transactions between users and businesses.
As popular DEFI services rose through the pandemic, we also see new concepts of DEFI such as yield farming and liquidity mining, but as usual new concepts like yield farming although has potential for larger returns, comes with even larger risks. If you are interested, make you are aware of the risks, advantages and disadvantages and always be on the lookout for anything suspicious.
DEFI services is still very new, we would like to remind users to do their strict due diligence before utilizing DEFI services. DEFI services trend has upsurge but we don’t see it going booming unless the common risks of applications crashing, bugs, security and scalability problems is resolved.
3. Tighter Fintech regulations.
Rises of global blockchain market will without doubt calls for tighter fintech regulations. Guidelines is already emerging as countries are more accepting of fintech, especially on dealings of cryptocurrencies. But this year, regulators will strengthen these regulations particularly on monetary digital transaction like digital banking and cryptocurrency.
As fintech fraud is a global problem caused by fake crypto investment platforms and other types of cyber frauds, it is estimative that regulators are putting tighter laws, regulations and guidelines to safeguards users from suffering financial loss. We hope that this remains without affecting the potentials brought by blockchain technology, as we hope so see the global blockchain market magnify.
Let us hope that regulators are not narrowing their acceptance to fintech having to deals with cyber frauds but with issuance of laws, regulations and guidelines that are clear and concise in order for fintech and economy digitalization to grow and progress.
Do you think these trends will keep on rising? What are other trends you think will set this year? Share your thoughts!