Blockchain 2019: How crypts will convert cash, property into digital assets


In 2019, the most innovative work involving ledger accounting technology (DLT) – blockchain – will focus on the tokenisation of resources, or on the ability to represent digital or physical assets and legal currencies such as tokens that can be sold or traded on a network .

DLT has the ability to take anything from a work of art to gems and real estate, and to represent them as cryptographic hash resources on an open peer-to-peer electronic network that does not have an authority central, like a bank, that governs their trade or sale.

Representing digital or physical resources as tokens on a DLT-based network allows participants to reinvent processes and develop new business models – an area unexplored from both a commercial and a technology perspective, according to a new Forrester Research report.

The 2019 Forrester forecasts for CIOs have placed the blockchain among other emerging technologies, such as artificial intelligence (AI) and augmented reality (AR), which will only be accepted by businesses if they solve real problems. Otherwise, the seller's hype could trigger a negative reaction that damages the general adoption.

Although better known as the basic technology behind bitcoins and other cryptocurrencies, blockchain is essentially a database built on a distributed peer-to-peer topology, where data can be stored globally on thousands of servers – and anyone on the network can see the voices of everyone else in real time. Therefore, it is virtually impossible for an entity to gain control or play the network because other users would be immediately aware of the attempt.

Despite the constant claims to the contrary, DLT has not yet had a revolutionary impact on any industry or process, according to Forrester, which argues that the blockchain industry should take a realistic approach to commercialize its capabilities and anticipate challenges in the unfold.

For example, blockchain is a team sport; if you do not have players other than you, it does not work, according to Martha Bennett, a leading Forrester analyst and principal author of the report. (Forrester prefers the term DLT on blockchain because he believes it is a more "neutral and accurate" description).

Bennett, who has a conservative view of the DLT, sees the blockchain today as analogous to the Internet in the early 1990s, when people recognized its potential but could not predict the activities it would generate, like Facebook, Instagram or WattsApp . Technology experts may have imagined an Amazon in the early days of the Internet, but they had no idea how it would dominate the online sales market, he said.

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