The cryptocurrency industry continues to grow and there are many trends to explore as 2020 moves on, with many of them focusing on how these currencies are more accessible than before and how the market is changing.
Major corporations take part
Many high-value corporations will start introducing cryptocurrencies. Facebook is planning to release its Libra currency late in the year. Facebook’s vast user base could help propel Libra as one of the top currencies on the market. The promotional efforts would be substantial, especially since Facebook has enough money to highlight what it plans to provide.
But any corporations that wish to introduce currencies must establish ones that people can exchange for stable currencies they use each day. A suitable exchange rate is necessary for allowing people to see what these currencies are worth.
An enhanced Bitcoin network
Bitcoin is the dominant choice in the crypto world, so many of the most notable crypto trends would entail Bitcoin. One point to see involves a soft fork that would entail changes to the existing Bitcoin code to make it more efficient.
Some of the things you might notice in the Bitcoin network include:
- Support for smart contracts
- Privacy enhancements
- Enhanced scalability within the network
These changes might influence other currencies to take note and find ways to improve their codes.
The growth of sidechains
You can expect sidechains to be more viable. Sidechains are blockchain-based setups where tokens and other assets from one chain can move to a separate blockchain and then go back to the original blockchain.
Sidechains will make blockchains more functional. You would find various features in a sidechain:
- Multiple intermediate points may develop within a sidechain. The design provides an additional layer of protection.
- Each sidechain is responsible for its security.
- A sidechain will use miners separate from the rest of the blockchain. The merged mining process will entail two separate currencies mined from the same algorithm.
- Crypto developers can use sidechains to test software updates or other releases before moving to the public.
A blockchain can utilize as many sidechains as its developers wish to include. The additional of sidechains will make currencies more functional and flexible.
The rise of crypto payments
Some websites and retailers have been accepting cryptocurrency payments in the past couple of years. There’s a chance more retailers will start taking these payments as people start moving towards a cashless society.
Cashless payments have become prominent throughout the world, and they entail more than traditional credit or debit cards. People can also use online wallet transactions or card-free NFC transfers in many retail spaces. Cryptocurrency wallets may eventually be accepted at some of these places.
Any retailer that wishes to accept crypto payments would have to link to a blockchain network that identifies current rates for currencies. The effort ensures the customer can complete a transaction and spend the precise amount one wishes.
Central bank digital currencies or CBDCs may become more viable. A CBDC is a digital version of fiat money. It is legal tender and may be utilized for completing various transactions.
The chance for national governments around the world to issue CBDCs would be compelling. These governments would have full control over these CBDCs, unlike cryptocurrencies that they cannot regulate.
The People’s Bank of China has been working on producing a digital yuan. The European Central Bank has also been active.
The USD Coin project could produce a CBDC for the United States. The USD Coin would provide a secure and suitable blockchain-based approach to currency, but it would still provide a stable setup like what you’d get from the American dollar. A format like this would also be more reputable, what with it being backed by a trustworthy currency.
Enhanced platform regulation
The platforms that people use when handling cryptocurrencies will become more viable. A platform may be chosen based on many factors, including:
- The service it provides
- The product strategy
- The size and the scale of the crypto community
- Any additional security rules a crypto chain wishes to use
The platform regulation system should ensure there are no problems with how crypto options work. It is possible for the currencies to be more viable when they work.
Exchanges will be easier
The last trend to see in 2020 entails how people exchanging their cryptocurrencies. There are many exchanges available for people to utilize, but each has different values.
You can utilize Swapzone if you’re looking for a place that can help you exchange your cryptocurrencies. Swapzone provides updated information on the exchange rates for different currencies from many exchanges. You’ll find details on the exchanges that can help facilitate your exchange and how long it would take to complete the work.
The system provides a thorough approach to exchanging currencies. Using a system such as Swapzone will make cryptocurrencies more accessible, which is a trend many people will look forward to the most.