This article is from Forbes, original author: Bernard Marr
Odaily Planet Daily Translator | Nian Yin Si Tang
While the media hype around blockchain, Bitcoin, and distributed ledgers has quieted down, organizations kept investing in the research, development, and deployment of these technologies throughout 2019. This year is set to be no different—Gartner analysts have once again included blockchain in their "Top 10 Technology Trends for 2020."
Don't write off blockchain and distributed ledger technology (DLT) as yesterday's news. In reality, the technology is still in its early stages—only a relatively small number of organizations have reached the level of digital maturity needed to leverage it successfully. Blockchain's future is deeply connected with other emerging technologies like artificial intelligence (AI) and the Internet of Things (IoT). Here are some key trends I'm predicting for 2020:
Financial Services Lead, But Other Industries Are Catching Up
It's no surprise that finance was the first industry to embrace blockchain, given its introduction to the world via Bitcoin. Since then, the financial sector has been a hotbed of innovation. This goes far beyond digital currencies—blockchain can be used to create fraud-resistant clearing and settlement systems and smart contracts (self-executing digital agreements), significantly speeding up transactions.
IBM, which claims more successful blockchain initiatives than any other company, expects financial institutions' investment in the technology to keep growing through 2020 and beyond. Gartner forecasts that blockchain will generate over $1 billion in business value for banks by the end of the year.
But the impact will extend well beyond finance. Blockchain offers clear value for any industry that needs secure, tamper-proof records and traceability. Current use cases include tracking the provenance of agricultural products and livestock, and verifying the origins of diamonds and other precious stones.
Facebook Will Launch Libra
Facebook plans to launch its cryptocurrency, Libra, globally in early 2020. While many details are still under wraps, it has already sparked significant attention and concern.
There have been thousands of cryptocurrencies since Bitcoin launched in 2009, most fading quickly. But none have had the backing of a company on the scale of Facebook—which could make Libra far more significant than any digital currency we've seen so far.
The road hasn't been smooth. Last year, Mastercard and Visa pulled out of the Libra Association due to regulatory concerns. Such setbacks would doom most projects, but Facebook—valued at $550 billion, more than both credit card giants—is pushing ahead.
Technically, Libra is a cryptocurrency, but it works differently from Bitcoin and most others. Its blockchain will be centralized, run by the Libra Association, rather than the decentralized "trustless" model pioneered by crypto. If successful, it could become the first virtual currency to truly challenge the global monetary system.
Blockchain and AI Integration Accelerates
One hurdle to adopting AI is its complexity and "black box" nature, driven by vast amounts of data. Many believe blockchain can help by making AI decisions traceable and ensuring they're based on verified information.
The relationship is symbiotic. While blockchain can make AI more accountable, AI can enhance blockchain security and make blockchain tools more user-friendly.
Combining these technologies allows companies to make faster, more accurate predictions, reduce waste, streamline supply chains, and adapt to new markets more quickly. As the value of this integration becomes clearer, 2020 will likely see continued growth in such innovation—including the first cloud platforms that integrate blockchain and AI.
Blockchain Secures the IoT
As more connected devices—both personal and commercial—share and process data, the risks grow. Data can be hijacked, lost, or misdirected. With increasing digitization and machine-to-machine communication, storing information reliably and securely is critical.
Blockchain and other distributed ledgers offer a near-perfect solution. Every transaction is permanently recorded in a transparent way—essential when organizations rely on machines and software from multiple vendors. This makes it easier to pinpoint communication failures or even detect malicious intrusions.
According to Gartner, 75% of organizations adopting IoT have already integrated blockchain or plan to do so by 2020.
Wyoming Forges Ahead—Others May Follow
This year, Wyoming became the first U.S. state to create a clear legal framework for blockchain, designed to foster innovation while providing oversight to manage risks.
When cryptocurrencies first emerged, enabling anonymous global value transfer, regulators and central banks quickly highlighted their potential for money laundering and illicit finance.
These concerns have largely kept cryptocurrencies out of the mainstream. The U.S. Securities and Exchange Commission (SEC) has repeatedly rejected applications for cryptocurrency-based financial products.
Wyoming's move doesn't change that. But by passing 13 laws to create a regulatory framework for blockchain and crypto, the state signals that—in some regions, at least—regulation can enable rather than hinder innovation. In 2020, other U.S. states and lawmakers worldwide will be watching Wyoming closely, and some may follow its lead.