What will happen to blockchain in 2021?

The third halving of Bitcoin occured in April and since then we’ve seen an acceleration in tech developments and a broader adoption of Crypto into mainstream financial markets.  A crash similar to 2017/2018 appears to be on horizon as the lure of cryptocurrencies gains momentum in a broader sense. What will happen to blockchain in 2021?  This time around, many more people will be heading into it with their eyes wide open.

2020 was an amazing year of developments in blockchain with DeFi really taking hold.  The trading markets have also picked up with volumes and prices reaching all time highs as 2020 came to a close.  2021 will be a year when the realities of many Cryptocurrency projects will take hold and embed themselves into the broader financial markets.

 

What’s the difference between blockchain & cryptocurrency?

Blockchain is the technology that supports the distributed ledger which is the network that allows people, companies and things to transact. It also enables the transfer of value and information.
Cryptocurrencies are the tokens you use to interact with the blockchain and these are what were so fervently traded in 2017/2018 (USD$48bn was traded daily!)
The main distinction is that the value of Blockchain is in the technology itself.

Here are our picks for the top 5 Blockchain technologies to watch in 2021:

Bitcoin

Bitcoin is the mainstay of the entire blockchain ecosystem.  The Bitcoin halving in early 2020 is due to happen around May this year.  Each halving has seen a delayed price spike of at least 10x.  However, this time round, the fundamentals at play are different.  The value of Bitcoin traded daily is USD$53bn which is a staggering 15% of all Bitcoins in circulation.  Miners are incredibly invested with countless millions of dollars worth of mining rigs cranking away in huge mining farms around the world.

Website: https://bitcoin.org/en/

 Tezos

If Etherium was Bitcoin 2.0 then Tezos is definitely Bitcoin 3.0!

Tezos has incorporated all the learnings from their predecessors and take security and governance of blockchain technology to the next level. It’s key features are that it uses Proof-of-Stake, has On-Chain Governance and most importantly it’s stakeholders govern the protocol and implementation of future innovations.  Tezos has garnered a huge community following since its inceptions and the future is looking bright.

Website: https://tezos.com/

 NIX

NIX provides a platform that has cross-chain compatibility with a highly secure, yet optional privacy protocol. In short, you will be able to exchange any crypto for any other crypto via NIX and choose whether the transaction is anonymous or not.  Nix has only been around a few years and to be honest it has been ahead of its time … until now!

The benefit is amazing; there’s no reliance on centralised exchanges as their DEX manager promotes fully private atomic swaps, avoiding the need to use (and thus pay) a 3rd party exchange. Imagine that! A free, instant and private currency exchange all via your smart phone.

Website: https://nixplatform.io/

HARD Protocol

The Hard Protocol is the epitome of Decentralised Finance (DeFi).  Essentially, the Hard Protocol built on Kava that lets anyone borrow and/or lend without having to do so via a bank or other establishment.  This is exactly why blockchain was created!

The HARD protocol started off with a uncertain start a few years back since their IPO but the bear market gave the founders time to revisit their road map and solve some key challenges. Their time is now so watch this space!

Website: https://hard.kava.io/

Blockchain Technologies Genesis Vision

Genesis Vision is a trading marketplace that brings together inexperienced investors with professional brokers, traders and investors.

Of course, this is nothing new, however, the added ingredient for GVT is transparency. Lack of trust and centralised control was what fueled the creation of blockchain technology. These guys have gone full circle by providing a trading platform that is open, transparent and decentralised.

Website: https://genesis.vision/

Summary

Our top 5 picks are based on our views only and we would strongly recommend you DO NOT use this information to base any decisions on.

There are thousands of other projects out there that do all sorts of amazing and impressive things.  There are also some that do absolutely nothing, like this one: Useless Etherum Token (https://uetoken.com/) which highlights how crazy the world of crypto can be.

If you are considering ‘investing’ in blockchain we’d suggest you do a lot of homework beforehand.

Check out our views on previous years:

20205 blockchain technologies to watch in 2020

20195 blockchain technologies to watch in 2019