Currencies / BlockChain
21 Dec 2018 – 05:31 GMT
By: Boris_Dzhingarov
The blockchain technology and its cryptocurrency applications have become aware of the main technological, financial and economic communities. The decentralized nature of Blockchain technology has opened up an interesting world of possibilities for the democratization of operations, systems and processes. Cryptocurrency, the most popular application of Blockchain technology has opened the proverbial Pandora's box on the possibility of money that exists outside the confusion of governments and traditional financial institutions.
2018 was an interesting year for Blockchain and cryptocurrencies. For example, the cryptocurrency market suffered huge losses that saw the price of Bitcoin fall by more than 70% to $ 3500 and the market capitalization of the cryptocurrency sector has plummeted from around $ 750 billion to about $ 110 billion. Many people are making increasingly pronounced predictions about where they think Blockchain and cryptocurrencies are leading in 2019. This piece is not intended to provide forecasts for 2019; rather, it is written for intimacy with developing trends so that it can take strategic positions.
- There is more in Blockchain than cryptocurrency
Stakeholders in the Blockchain industry are making a concerted effort to end the long placement with cryptocurrency to ensure that people understand the difference between Blockchain and cryptocurrencies. One can expect to see a concerted effort to push other Blockchainsuch applications such as smart contracts and tokenization into the spotlight.
Organizations such as the Ethereum Enterprise Alliance, the Blockchain Alliance and the Hyperledger project are at the forefront of highlighting and promoting the use of Blockchain beyond cryptocurrencies. Smart investors may want to start looking beyond cryptocurrencies in startups that take advantage of Blockchain to trigger new levels of disruption in various industries.
- The cryptocurrency exchanges will be subjected to a more thorough check
Cryptocurrency exchanges function like stock exchanges but are inherently different and are largely unregulated in the ways the stock exchanges are. 2019 could be the year in which regulatory authorities pay more attention to the activities of cryptocurrency trading. Regulators are already blocking ICOs; many founders of ICO, cryptography experts and consultants have been investigated for their roles in what turned out to be ICO scammers. Interestingly, many ICO scams were perpetrated through cryptographic exchanges.
Increased regulation will be fundamentally positive for the market and all the best cryptocurrency changes will remain when regulation will achieve cryptocurrency innovation. 2019 could also be the year in which decentralized exchanges break out in the limelight as people rely on a real peer-to-peer facilitation of their cryptocurrency transactions.
- There will be more use of Blockchain and crypto in games
Many altcoins are built on nothing but a nice landing page, well-written white papers and a good deal of hype. However, the gaming industry may be able to find a better intrinsic use of cryptographic tokens by attributing their value to a gaming ecosystem. As the tokens are used to pay for Disneyland races, players can exchange legal currencies for tokens, and the tokens can be used to participate in games, purchase equipment, upgrade skins and other products.
Video game services may also unlock new levels of engagement if virtual tokens can be exchanged for fiat or if tokens can be used to buy stuff in the same way as gift cards work.
- Government agencies will begin to explore the use of Blockchain technology
Beyond financial services, Blockchain technology is ready to become an integral part of government processes and organizations. First, Blockchain technology can improve data management across agencies to make government processes leaner, faster and more efficient. Decentralized autonomous organizations (DAOs) based on Blockchain technology can eliminate some bottlenecks and bureaucracy in the decision-making process of government agencies.
Of course, it is excessively ambitious to think that government agencies will abandon legacy technologies for Blockchain within the next 12 months; however, we can expect to start seeing conversations about how Blockchain technology can make a difference in governance.
By Boris Dzhingarov
© 2018 Copyright Boris Dzhingarov – All rights reserved
Disclaimer: the above is a matter of opinion provided for general information purposes only and is not intended as investment advice. The information and analysis above derive from sources and use methods deemed reliable, but we can not accept responsibility for any losses you may suffer as a result of this analysis. Individuals should consult their personal financial advisors.
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