Do you believe that you can make the best out of the troubling waters? Well, trouble has walked in and out of the crypto space in the recent past. From the market crash in March to the 51% hack on ETH classic in August are just some of the horrible moments presented to us by 2020. But there is a brighter side to 2020. Keep on reading for some fascinating crypto top tech trends to watch out for in the remaining year of 2020. Here we go.
The Launch of ETH 2.0
Ethereum has taken a long time to upgrade, but better times are coming. The long-planned upgrade is now on the testing stage of phase 0, the first stage of ETH 2.0. We expect the launch to take place by the end of 2020. Through this upgrade, the network plans to improve on scalability and security.
Through ETH 2, Etherium will turn into a proof of stake blockchain by introducing shard chains. Note that the network is now proof of work blockchain. The protocol’s security is entirely at the mercy of the miners. Once launched, the network’s energy consumption will be reduced. This will increase the number of transactions on the blockchain. It will also guarantee a reduction in the cost of transactions. Most investors and speculators expect the prices of ETH to pump once the ETH 2.0 launch. Where do you see the prices after the launch?
Decentralized Finance has had incredible developments for the better part of the year. The evolution in the financial space has seen an introduction of new lending and trading terms. Decentralized exchanges (DEX) allow users to trade different digital assets right from the wallets. Looking at the markets, 2020 has witnessed the listing of Defi tokens like Sushi, UniSwap, and YFI on significant exchanges. It is possible to imagine the glory of these markets will die off just like the ICO fire did in 2020. Though there will be a lot of development in the space that may see the fire burning.
Uniswap has a market cap of over $400 million. Thanks to significant technology developments on the protocol. In May, the on-chain exchange launched the Uniswap V2 on the Ethereum main net. Compared to Uniswap V1, the new protocol has significant improvements in every aspect of cryptography. The new protocol has made trading more enjoyable.
The improvement on the price oracles makes it hard to manipulate on-chain price feeds. Uniswap V2 accomplishes this by calculating the prices when they are high and accumulating their past data. Prices are hard to control because they are measured at the beginning of every block. It is now possible to pool ERC 20 tokens directly. V2 introduces liquidation through wrapped ETH. Before, liquidation takes place between the normal ETH and a single ERC20 token.
Kraken’s Bank Status
Kraken is an established centralized cryptocurrency exchange. It hit the headlines in September after receiving a bank status. As a bank, the exchange aims at using its access to federal payments infrastructure. This is to integrate banking and funding options to its clients. Kraken will also be able to open offices in other territories in the US and maybe other countries in the long run. What do you think? Will such developments stimulate the mass adoption of crypto?
It is good that crypto firms are taking the banking space, but with it comes the regulations. Governments monitor what banks do. This will make it easier for the feds to know your transactions.
Regulations, Are They Good or Bad?
Depending on where you sit, this is both bad and good news. The primary driving force towards the development of Bitcoin by Satoshi Nakamoto is to decentralize all aspects of humanity. It does not exempt the banking system; this may see more regulations on cryptocurrency. Will this affect the gains made by cryptocurrency? Time will tell.
What is the role of regulations? To protect citizens from the hands of criminals who may want to take advantage of unregulated markets. They also protect you from fraudsters who may operate as exchanges or lure you into any other form of investment.
All said, there are several regulations around the globe. Some of these laws frustrate the gains made by cryptocurrency, but some are crypto-friendly. The “Token Act” by the Liechtenstein parliament is an excellent example of crypto-friendly laws. Let’s not dwell so much on that, for there is more that we need to discuss.
The Bitcoin halving happened last May is one of the top tech trends in the year 2020. Since then, we have seen the Bitcoin market surging, breaking the $10500 key resistance. $10500 is a crucial resistance because BTC has been struggling to break out from this in the last two years. Most experts and traders say that we are still on the Bull Run despite the latest market correction. Bitcoin has been above $10,000 in the last 67 days.
The halving has cut the block reward by half from 12.5 to 6.25. This means reducing the BTC’s supply. This is why traders and speculators are bullish on Bitcoin and the entire crypto market.
The Lightning Network
Lightning network layer-2 solutions apply to almost every protocol that is launching today. The protocol focuses on scalable, instant, and low-cost off-chain transactions. Bitcoin is still struggling to address the security issues on Lightning. Experts warn attacks on the network because of vulnerabilities. DeFi protocols have adopted the layer-2 solution. This is a straightforward way towards achieving bitcoin’s scaling problems. But first, they must address all security issues. The big question is, when will it happen? Once layer-2 is added to Bitcoins through the Lightning network, we will see fast and low transactions fee on the blockchain. Another crypto top tech trends for the year 2020 but definitely not the last one.
In conclusion, many areas are yet to explore blockchain technology. This means that there is still room for additional crypto top tech trends in the crypto market. Where do you want to see the blockchain technology to be implemented?