American research firm Forrester recently released its forecast for blockchain technology for 2021. The report presents interesting results, noting that 2020 has been an important year of growth in blockchain and distributed control technologies.
Martha Bennett, Forrester’s lead analyst and co-author of the report, told Cointelegraph that the company’s blockchain forecasts are based on inflection points that show specific changes rather than continuing trends. For example, the report predicts that 30% of global projects will be launched next year. This is in part due to the impact of the COVID-19 pandemic.
According to Bennett, many of the blockchain-based systems in existence today have a common factor: less time to resolve inconsistencies. In some cases, this can happen immediately. Bennett noted that this generic factor applies to use cases in the supply chain as well as financial services:
“It’s not just about having fewer people to do certain tasks. It is also about reducing wasted time and freeing up liquidity. The main thing is that this can be achieved today, in the context of current operations and operating models. ”
Development “takes time”
While this may be the case, Bennett shared that long-term strategic projects in financial services tend to involve potential changes in market structure and operating models. Many of these issues also require organizational changes. “It takes time, resources and effort. This is the main reason the volatility and uncertainty associated with COVID is causing many banks to roll back some of their long-term DLT projects right now, ”Bennett said.
The report also says that almost all of the measures that will move from beta to production next year will run on blockchain platforms for companies using the cloud. Most likely, these will be solutions from Alibaba, Huawei, IBM, Microsoft, OneConnect and Oracle.
Alistair Rennie, general manager of IBM Blockchain, told Cointelegraph that the expectation of launching 30% of enterprise blockchain projects next year is consistent with what IBM has already seen among customers:
“With the increasing pressure the pandemic is putting on supply chains, customers are finding it urgent to accelerate their digital transformation to become stronger than ever before. We are seeing an expansion of existing and new blockchain projects. The most successful are those that are based on strong business use cases and have well-defined value that they can add to the business. ”
Top tech prediction: zero proof of knowledge
From a technical standpoint, Bennett said the most important prediction included in the report is the growing need for zero proof. “ZKPs are required because of confidentiality issues that currently impede projects,” she said. The report also explains the problem that ZKP can solve:
“For companies that didn’t want to rely on established coding methods, the only option was to keep only the segmentation in the chain, or use combinations such as selective copying or proprietary datasets. In many cases, current technology also fails to address display issues arising from data. Descriptive. ”
Recently, however, significant progress has been made in the ZKP area. For example, the ZKP project is being developed by the big four Ernst & Young. This privacy software known as “Nightfall” will allow blockchain-based private transactions using ZKP. Paul Brody, Global Head of Blockchain at Ernst & Young, told Cointelegraph that the company’s top priority in the coming year is to make it easier for developers to use Nightfall and ZKP:
“The biggest problem with using and implementing ZKPs is that they are much more complex than coding a smart contract without privacy. I would compare this to adding SSL and encryption to web pages in the early days – that’s not something people learn. When they learned to develop solidity, and at the moment it is not so easy to implement. ”
Brody also shared that work on Nightfall aims to improve the privacy of transactions by masking the metadata that can be obtained by analyzing network activity. And while the product currently supports private translations and regulatory compliance, Brody explained that the company wants to expand it with new privacy tools. He said, “If we do our job right, people will switch from developing DApps (decentralized applications) to developing ZApps (zero knowledge applications).”
Related: Zero Proof of Knowledge Explained
In addition, the IBM blockchain platform uses ZKP to maintain data privacy. Ramesh Gopinath, VP of Blockchain Solutions at IBM, told Cointelegraph that IBM uses ZKP and related cryptographic systems to secure multiple accounts to provide robust privacy analytics along with AI data in blo.