Enterprise blockchain adoption will increase in 2021
Wednesday, January 13, 2021
Mance Harmon, CEO, and Co-founder of Hedera Hashgraph predicts that in 2021 enterprises will continue shifting business logic into layer 2 networks, DeFi and stable coins will transform financing and obtaining loans for working capital, and a combination of technologies with existing systems will increase enterprise adoption.
One significant trend witnessed in 2020 was the wave of large enterprises moving to execute their business logic in Layer 2 networks and simply using Layer 1 for consensus and arbitration. This combination offers enterprises the best of both public networks — with superior, distributed trust - and private networks — with lower costs and better scalability, privacy, and regulatory compliance. For example, the Ethereum network is encouraging users to move most smart-contract execution off-chain to L2, while only occasionally executing on the mainnet.
This is a trend that will carry on and dominate the industry long into 2021 as enterprise adoption accelerates.
In 2020, the DLT space has seen a notable increase in tokenization, DeFi, and Layer 2 networks; all of which are being developed to provide enterprises with the foundation to use DLT in routine business transactions. As we head into 2021, the recent maturation of tokenization, fiat-backed stablecoins, and DeFi will make traditional financing operations faster and more affordable. This will transform processes for purchase order financing, obtaining loans for working capital, purchasing shipping and product insurance, securing inventory financing, invoice factoring, and more. Integrating this combination of technologies with existing enterprise systems will drive a significant acceleration in enterprise adoption in 2021.
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