The Israeli blockchain community is hailing 2018 with a very strong reputation, and industry experts have high hopes for blue and white developers and academics to make a mark in 2019.
It is expected that startups in the sector will continue to multiply and developers and academics rely on new ones, transforming uses for blockchain technologies.
"Israel is at the forefront of solving the real problems facing the blockchain world," says NoCamels, Josh Liggett, a fintech and blockchain financial analyst.
"Blockchain will be the next big thing in Israel because it mixes all the technologies we have here including AI, IoT, cloud, cybersecurity, etc. We all have them.Most of the blockchain needs of products are here.We are well positioned and in first line, "says Yael Rozencwajg, founder and CEO of Blockchain Israel.
SEE ALSO: With Daring And Chutzpah: how Israel is ready to be a blockchain leader
If foreign investment is something to go on, it would seem that the global community accepts that Israel is a good place to look for blockchain innovation. Last year, the European investment bank Benson Oak, the Swiss fund VC Lakestar and South Korea Kakao Investment, among others, put all the money in Israeli startups focused on the blockchain.
"Under the radar, some of the best people in the world are investing in Israeli blockchain companies, Founder of Ethereum Vitalik Buterin, Capital of Polichin, Naval Ravikant, these are high-profile," says Liggett, who blogs OurCrowd about blockchain developments .
Israel has secured numerous blockchain-related titles in 2018 for its startups, ICOs, investments and educational initiatives. Most of the titles were positive, but some Israelis were presumably connected to the initial money supply scams (ICO).
While 2016 and 2017 were about ICO offers and new startups using Crypto to raise funds, 2018 will be remembered as the year of the big crash crypto. Many of the startups that used crypto and blockchain technology to raise money turned out to be fraudulent or could not deliver what they promised.
"The ICOs we saw in 2017 and 2018 are gone, they will not be back in. This was a situation where you could say," Hey, I could decide to open something, I'll give you a token. If I do not open, then too bad. There is no appeal. "You can not do it anymore," says Liggett. "Ico will not be back."
The ICO crash, however, is seen by some industry experts as a way to clean up the blockchain image and now push it forward towards the significant technology that can be for traditional businesses, charities and financial institutions.
"The Israeli blockchain industry is currently experiencing both a push and a transformation.On the one hand, we see unprecedented growth among blockchain startups, but on the other hand, many of them are skipping ICOs in favor of equity financing Today there are fewer startup founders coming out of morally dubious markets, such as Forex, binary trading and gambling, while other institutional players are starting to enter the market. he is going through a self-preparation, "said Gold, a founding member of the Israeli Blockchain Association, to Forbes.
Rozencwajg says that blockchain technology will become a crucial part of everyday life.
He says that fintech, medicine and biotechnology, agriculture and the gaming industry will show the greatest benefits from blockchain technologies in the coming year. "We need blockchain to protect all networks," he explains.
Blockchains record, collect and transfer all types of data. Industry experts believe that it is only a matter of time before blockchain platforms are used for asset management, insurance claims, cross-border payments, property and real estate rights, health management, music property rights, voting and a host of other possibilities.
According to data from the Israeli Blockchain Association website, local blockchain startups are concentrated in the fintech, protocols / main infrastructure and security sectors.
Israel has about 300,000 developers, according to Blockchain Israel, and many are working on corporate web applications, advanced solutions and blockchain and crypto technologies.
"It will take time for people to understand how powerful this technology is, there are so many technologies that have yet to be developed," says Liggett.
The OurCrowd analyst sees 2019 as a year to change blockchain protocols instead of implementing technology in new areas.
"I do not think the solution will come in 2019. I think Israel will work more on technology because blockchain is a protocol, people will work on technologies. Once technology is established, people will rely on it and apply it to different industries. I do not think the focus will be on the sectors, I think the focus is on the core technology, "said NoCamels.
Liggett says some names to watch over the next year include Technion professor Eli Ben-Sasson, who co-invented Zerocash – a cryptocurrency that preserves privacy, and co-founder of the startup behind its implementation – Zcash; Maya Zehavi, blockchain entrepreneur and founding member of the Israeli Blockchain Industry forum; Gal Landau-Yaari, former CEO of the Tel Aviv Stock Exchange, which is researching blockchain and cryptocurrency technologies, governance of emerging technologies and financial stability at the University of Haifa; and Yonatan Sompolinsky, a doctoral student, and dr. Aviv Zohar, both from the Hebrew University, who proposed the GHOST protocol.
"These are the people who are busy working on the construction of the next big thing [in blockchain]", Says Liggett.
In fact, Israeli technology is famous for evolving according to the needs of the world. From telecommunications to semiconductors, from mobile technology to autonomous driving, from cybersecurity to blockchain, academics, computer scientists and developers in the country are renowned for the creation of new technological protocols.
"Israeli academics were among the first to develop the zero-knowledge testing philosophy," Jonathan S. Rouach, CEO of Israeli startup QED-it, told Start-up Nation Central. In cryptography, ZKP is a method by which a party can demonstrate to a second party that they know certain information without telling them what that information is. "We are using this advanced technology to bring blockchain to the enterprise world."
SEE ALSO: Israel boasts over 200 local blockchain startups, a new report says
Also Blockchain Academy and Blockchain Incubator, run by Blockchain Israel and Microsoft, are inspiring changes in the technology arena.
On December 24, Microsoft and Blockchain Israel launched their first Blockchain Incubator adventure. The Blockchain Incubator will offer workshops to help entrepreneurs and teams thrive in the blockchain community.
"As any programmer can say, many current technologies have undergone a serious revolution that has had a lasting impact on development, which is why we have designed our initiative around an educational model that strongly guides the path to technological education", says Rozencwajg.
In related news, Microsoft and Blockchain Israel have announced that the second class of its blockchain education program, Blockchain Academy, for R & D leaders, CTOs and senior developers to master the tools to help startups begin to thrive, will begin January 28, 2019.
Israel will mark 2019 in the blockchain space. Whether it's innovative protocols or new startups.
"The bottom line," says Rozencwajg, "is that Israel is really promising on the blockchain."
Viva Sarah Press is a journalist and speaker. He writes and talks about creativity and innovation taking place in Israel and beyond. www.vivaspress.com