07 Jan

Predictions for blockchain technology for 2019

BLOCKCHAIN

BLOCKCHAIN

The TULIP-MANIA (hype) is over. A fresh deep rooted era begins for blockchain technology in 2019.

Too much association with crypto currencies and especially Bitcoin has made Blockchain untouchable for lot of businesses and they are actually sceptical of blockchain and unwilling to adopt this technology. Blockchain as TECHNOLOGY will emerge in 2019. It will be better known in 2019 that blockchain technology can have numerous use cases that are completely unrelated to cryptocurrencies. Once this becomes clear to more people blockchain will be able to experience much wider adoption.

A major stumbling block the Blockchain industry faces is the imbalance between scalability, decentralization and security. These technical barriers have undermined the trust and capabilities necessary for mainstream adoption and business relevance of Blockchain. Real breakthroughs in scalability and performance are expected to begin coming to fruition in 2019 and the blockchain shortcomings largely being solved in two to three years from now.

2019 will be a year where the industry will shift its focus toward the real-world problems that blockchain technology could solve. There will be a particular focus on discovering not just where blockchain could fit, but to find places where it is the best fit. We will therefore see a transition of enterprise interest towards identifying tangible, productive use cases for blockchain. Projects will thereby move away from a “blockchain-for-everything” approach to back-to-earth implementation.

In 2019 the question about Blockchain will move from ‘What is blockchain?’ to ‘How can we use blockchain technology?’ and therefore we can expect more businesses to enter the blockchain space. The technology will be more widely adopted by mainstream companies. As more and more companies are moving towards this emerging technology, we can expect that investments in this technology will further rise.

As companies shift their focus from “what is blockchain” to “what can we do with this technology”, another key trend in 2019 will be more decentralization of apps themselves. These are key for wider spread of blockchain and crypto currency adoption, as they will make blockchain more affordable and accessible.

Looking at the most active blockchain sectors, these are still to be found in the finance, supply chain, and trade finance industry. These mainstream businesses will continue to both accept blockchain into their everyday practices, as well as shape its progression through usage and regulation.

But also industries like distribution and services, logistics, real estate, aviation and others have started exploring the potential of blockchain for use cases like payments, remittances, traceability etc. In 2019 we will begin to witness more acceptances of blockchain-based offerings by a much broader industry base. It is certain that in 2019 blockchain will further revolutionize business processes for many industries. The technology is poised to change various industries, the financial services and banking industry being the most significant.

The idea of the immutable distributed ledger and its security levels is also attracting various governments’ agencies to consider using it for storing data on such a system. This is due to the fact that it can hold large quantities of data which is then available from anywhere in the world at any time, while the system is mostly hack-proof. It clearly has potential, and government agencies are not going to wait too long before start using blockchain for its own purposes. We believe that the process might actually begin in 2019.

Another important trend is that promising technological advances in other sectors such as AI, Big Data, IoT and biometrics will increasingly converge with blockchain technology. Entirely new marketplaces are expected to appear as a result.

As blockchain technology is increasingly seen as a non-Bitcoin linked technology and will become more popular, companies are expected to “finally get over their fears” and start applying it. As a result, there will be a high demand for blockchain experts, architects as well as people with specific blockchain skills and an urgent need to keep attracting top talent into the industry.

Demand for education and training in this area will increase. As a result we will also see increased commitment by universities and other higher education institutions to introduce these blockchain and other technology courses in their package.

Cryptocurrency exchanges that have come up in 2018 will show growth both in their number and popularity in 2019. Decentralized exchanges will thereby become increasingly prominent in markets for cross-border payment and investing. Although the majority of the present crypto exchanges are centralized, the number of decentralized crypto exchange will increase, as they will offer better user control, higher security level, and better liquidity. Consumers however will demand that these crypto exchanges be regulated, as more and more jurisdictions adopt regulatory frameworks around cryptocurrency.

The introduction of the General Data Protection Regulation (GDPR) in Europe in 2018 already had a widespread effect globally. In 2019, we will see privacy and personal data protection trends continuing to grow in importance. This is something we can expect with blockchain, given that a large part of this technology is designed to verify the identity and protect the privacy of people and assets across traditional borders.