Blockchain is a disruptive technology with a lot of untapped potential. From its inception to present,the technology has seen lots of ups and downs. The past year saw a huge drop in value for its flagship use case, cryptocurrency Bitcoin. Additionally there are also reports that suggest that a number of pilot programs in Blockchain are failing to show value. However, many big players such as Walmart, IBM and the like continue to invest heavily in this technology, highlighting their confidence in its value of providing innovative solutions to secure and transparent record of all transactions.
As you can see, blockchain technology is here to stay. In this article we will explore the top trends in this technology in 2019.
Top Trends In Blockchain 2019
Decentralization Of Applications
This year we can expect to see decentralization of apps themselves, not just the ledger. Many of the applications that use blockchain ledger depend on a centralized app. This is a point of vulnerability that can allow data tampering before it gets recorded on the ledger.The same approach should be applied to the application’s logic, which should be decentralized, thus having no sole point of control. In the ecosystem each member runs their own application. Creating that kind of application is not very easy, however, is a critical step for making sure of wide adoption of blockchain for business use.
Blockchain as a Service (BaaS)
Though most organizations are working on their own blockchain solutions, it is not always viable for them to develop, maintain and handle an individual blockchain solution. Blockchain as a Service (BaaS) comes as a solution at this juncture. With BaaS, organizations can leverage cloud-based solutions to develop, host and use their own blockchain smart contracts, functions and apps on blockchain. Here a cloud-based service provider handles all the required activities and tasks for keeping the infrastructure operational and agile. There is an increasing probability that BaaS will accelerate the business adoption of blockchain.
Watch out for hybrid blockchains this year. With hybrid blockchain, you can access the best functionality and features of public and private blockchain. What makes them unique is that not only does it provide customizable solutions, but also offers customizable solutions and moreover, makes proper use of what blockchain offerings such as security, transparency and integrity. Some examples of hybrid blockchain use cases include banking, internet of things, enterprise services and supply chain.
Interoperability Between Blockchains
With the progress in market, today we can see new blockchain networks developing, resulting in new chains that provide different network processing, and speed. The basic purpose of blockchain interoperability is to enhance information sharing across different networks. These cross chain services enhances blockchain interoperability and enables it to become more feasible for day to day use. For instance, blockchain interoperability can help you to send information to Ethereum blockchain from EOS. This year we can expect to see significant improvements in the technology that makes blockchain interoperability possible.
Increase Of Security Tokens
The past year saw a slowdown in the utility token market, thus leading to a lot of hype a lot of interest when security token came. For a long time the market has been waiting for institutional investors to enter the scene, however that has not happened. The success of security tokens is conditional on the operation of digital assets. Together with crypto exchanges looking for regulatory clearance for security tokens, we can also spot traditional players such as the London Stock Exchange, Swiss Stock Exchange, Nasdaq, and the developing digital asset platforms. These are signs pointing to the fact that market infrastructure will be properly functioning by the later part of this year. With the stabilization of the processes and addressing of the concerns, we can expect to see launches of many STO projects by the end of 2019.
Moving From Crypto To Digital Assets
Today investors are on the lookout for alternative assets classes as there has been a quite a number of signals pointing to the likelihood of a global slowdown this year. The burgeoning market for security tokens has led to large opportunities in the tokenization of well performing assets that lacked liquidity before. Many Real Estate Assets and Small-Medium Enterprises (SMEs) do not have wide market access despite having robust returns. Though public market listing might not prove affordable to them, they can benefit greatly from opening up to global markets of investors who could offer them a healthy flow of capital to step up their business. As a significant portion of organizations operating globally are listed as SMEs today, there is a high chance for growth.