Growing technologies that define Blockchain in 2019

Let's examine some of the most exciting nascent technologies in the blockchain industry and how they will shape the blockchain in 2019.

Blockchain, the technology originally developed to support Bitcoin's cryptocurrency, could very well arrive in 2019. While the current cryptocurrency market has disappointed investors and supporters since the "upward rush" of 2017, blockchain technology has marched forward. in the background, bringing technological advantages to more industries beyond its humble origins.

Nascent Technologies in Blockchain

Blockchain technology is becoming a business-class tool for companies and organizations at the forefront. Cross-border remittances, self-executed contracts, tamper-proof medical-judicial records, digital identity / rights management, and supply chain management are just some of the blockchain's possible applications, but the industry is still at the beginning. Due to the increasing number of technology use cases, we are seeing industry leaders pushing the limits of how blockchain technology works, with new ideas and improvements being developed daily to help bring mainstream Blockchain.

Below are the overviews of the most interesting developments currently using blockchain technology and examples of how these concepts are implemented in their early stages.

Blockchain as a service (BaaS)

Blockchain-as-a-Service, or BaaS, is a new concept that is explored by technology giants like Microsoft, IBM and Amazon, along with small startups that recognize potential blockchain for companies. These BaaS providers have built robust blockchain networks that can be outsourced to companies that want to build their own solutions powered by blockchain; like smart contracts, decentralized apps and master books. Basically, BaaS offers those who want to experiment with blockchain technology the opportunity to do so without any internal development of a real blockchain network.

This newly available BaaS technology is revolutionary because it brings blockchain accessibility to almost everyone who wants it, opening the door to new cases of use and innovations in rapidly developing blockchain space. With most of the BaaS providers active in the second half of 2018, 2019 is ready to see a wave of new blockchain-based business solutions developed across multiple corporate carriers with the expiration of BaaS. Matthew Kerner, General Manager of the Microsoft Azure project, said this about the future of BaaS,

Recently, we have seen our customers move from experimentation to a clear focus on the creation and growth of industry-specific shared utilities where multiple organizations come together to exploit immutable shared data and business logic sets to more effectively manage the processes they go through company boundaries / Matthew Kerner, general manager of Microsoft Azure

BaaS is already destroying several business carriers. BaaS is used to guarantee security and transparency in the food and pharmaceutical supply chains. The service is also helping banks pay off cross-border payments and is redefining the way insurance is handled by large insurance companies. With BaaS providers strengthening their service platforms, 2019 will likely see many new companies start experimenting with and implementing blockchain technology.

Ricardian contracts

We have heard of smart contracts since Ethereum began in 2015 and smart contract technology is truly revolutionary, but there is also a lesser-known type of contract that can be used by blockchain ecosystems – these are known as Ricardian contracts.

In essence, Smart contracts are predetermined agreements written in code, which can then be read and executed autonomously by computers. In contrast, Ricardo's contracts are written in human languages ​​as records of the "intentions" and "actions" of the parties involved in a contract, before a contract is executed. These contractual terms are then converted into code (through the use of cryptography) and executed via an intelligent contract protocol. The Ricardian contracts are therefore written more in line with the legal contexts familiar to us, making them more easily recognizable and useful in a juridical sense than the predetermined smart contracts.

Ricardo's contracts are a powerful tool on their own and can help smart contract technology become more widespread when used together with it. The integration of Ricardian contracts into blockchain platforms such as EOS will become more advanced in 2019 and exciting start-ups such as Mattereum aim to revolutionize the relationship between smart contracts and legal contracts using Ricardian contract technology. 2019 will probably see Ricardian contracts bring the possibility of blockchain-based contractual arrangements closer to the mainstream than ever before.

Decentralized oracles

Even if the technology of the intelligent contract is developing at the speed of light, it is limited by the lack of "bridges" for the real world – oracles are these bridges. The oracles work by supplying input data to an intelligent contract so that the intelligent contract can perform its functions. While the concept seems simple, the "oracle problem" has been a thorn in the side of intelligent contract developers since the concept was conceived. Because an oracle determines what information is provided to an intelligent contract, the oracle essentially controls what the smart contract can do. A problem is created if the oracle is too centralized, because the data it provides can not be trusted and even the decentralized smart contract becomes unreliable.

Decentralized oracle solutions aim to solve this problem by compiling data for intelligent contract services from multiple sources, using cryptography to ensure these sources can be trusted. Examples of this type of technology can be seen in growing projects such as Streamr and Chainlink, which are oracle solutions for data recovery, or with forecast markets like Augur and Gnosis, which use decentralized oracles to verify the outcome of events. Because both smart contracts and decentralized oracles become more sophisticated, 2019 will likely see larger implementations of decentralized oracle solutions.

Interoperability between blockchains

Tokenization, cryptocurrencies and decentralized applications (dApps) are the premier technologies developed thanks to the blockchain. These concepts are revolutionary, but they face a huge obstacle when it comes to adoption – no one is universally supported through the most popular blockchains. Instead, any newly designed token, currency or dApp is inherently stuck on its native blockchain, but 2019 may be the year we start seeing a shift in this paradigm.

Interoperability is a generic term used to describe the concept of cross-chain compatibility for digital resources, tokens and dApps and the concept is likely to see huge developments in 2019. There are several ways to facilitate interoperability. Platform-platform solutions, such as the Gateway Federated Gateway Protocol (OpenGP), provide a way for blockchain tokens to "travel" from one blockchain to another. The OFGP is currently used to facilitate transfers from BCH to ETH, but many other solutions are being developed to provide similar functionality to different platforms.

At the macroscopic level, interoperability can mean far more than simply allowing two blockchains to exchange tokens. The Polkadot network is an interoperability protocol created by the co-founder of Ethereum Gavin Wood. The project aims to create an "internet of blockchains" able to facilitate authenticated transactions between blockchains while allowing them to have completely arbitrary state transition functions. This exciting project is ready for launch in Q3 2109.

Security token

2017-2018 saw hundreds of Initial Coin Offerings (ICOs) come, raise capital and vanish before the eyes of all investors. In fact, the Wall Street Journal published a report in mid-2018 that showed that hundreds of millions of dollars were invested in fraudulent ICOs, and a report from the ICO Statco Group consulting firm showed that about 80% of the studied ICOs were scams. How could such a large number of ICO steal investor funds? Through a complete lack of regulation and official supervision. In 2019, we will probably see the ICO structure give way to the safest and most legitimate security token concept.

Security tokens are tokens that typically derive their value from a tangible asset of the real world, such as gold or real estate, rather than a hypothetical hypothesis of the future value of the token. In addition, security tokens are subject to the Howey test of the Securities and Exchange Commission (SEC), making tokens subject to federal regulations and thereby providing investors' rights. The prevalence of security tokens is set to expand in 2019, offering an opportunity of extraordinary value in the real world in the blockchain sector.

2019 may not yet see the crypt market rallying to historic highs, but the blockchain industry that has grown with it is seeing innovation and progress like never before. The technologies discussed in this article represent valid ideas and use cases for blockchain technology that should last for years to come. These trends will undoubtedly define the direction of the sector in 2019.