Experts say 2021 is poised to see greater adoption and venture capital investment in blockchain technology. That prediction comes as more financial services apps are built using blockchain technology and cryptocurrency has become more widely accepted.
Also working in the industry’s favor is the fact that major financial services companies including PayPal, Visa and JPMorgan have adopted cryptocurrency as a payment method in the past year, as well as more startups coming on the scene—armed with capital—to develop more user-friendly blockchain platforms.
Still, blockchain faces hurdles, including volatility in cryptocurrency pricing and confusion and misunderstanding from many consumers about the technology and related financial services, experts say.
Blockchain is digital information that is stored in a public database, and the benefit, particularly in the financial sector, is the ability to have a shared ledger recording detailed transactions without any identifying information, leading to improved security.