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What lies behind encrypted winter? Blockchain development, disruptive energy collection.Getty
Last year, the perceptions of blockchain technology were caught in the crossfire of the rapid peak of cryptocurrency and dramatic collapse. It is not surprising: cryptocurrency is the first and most visible application of blockchain and many people think they are the same thing. It could be convenient and easy to use the price or market capitalization to summarize the narrative of the sector. But it is not correct. The blockchain space is vast, spanning industries, each with different curves and adoption opportunities, and the nuanced value of nascent technology is not reflected in these numbers. Indeed, focusing on these parameters obscures what is actually happening inside the space, putting executives at risk for developing blind spots that hide potentially disruptive development while collecting steam.
But when billions in the cryptocurrency occurred in 2018, we learned something significant. & Nbsp; The world had a high-risk concept test by exploring if the blockchains could really be a way to securely transfer digital value from one side to another. Even though large-scale hackers of poor custodial companies have filled the news, millions of people around the world have contributed to a global battle test to see if technology could hold or sometimes transfer over a hundred billion of dollars of digital data value in the form of blockchain-driven cryptocurrency. This revealed future challenges (the need to evolve consensus and governance mechanisms, improve user experience and obtain regulatory clarity, to name just a few). But he also showed us that yes, blockchains can he transfer the digital value securely.
So, how do companies react? Companies are paying attention, working hard to understand how this functionality translates into their industry and how it can shape potential perturbations. Here are several internal perspectives on where we are today, and where companies invest in technology in 2019:
Jessica Groopman, industry analyst and founding partner, Kaleido Insights:
The market seems to enter a winter, as IA has done two or three times before its commercial boom. These types of shakeouts are ultimately a good thing because they help to distinguish facts from fantasy. There are signs that suggest this will be a mild winter rather than a full lethargy. First, several adjacent spaces are growing that will influence adoption, such as AI, cryptographic techniques and digital identity management. Secondly, we see some steps towards mainstreaming, with regulatory actions, consolidation in crypto-exchanges such as Coinbase and practically all the major technology companies in the world that build dedicated blockchain-based teams and products. Third, investments are moving away from speculation, as in the ICO and & nbsp;towards practical investments& Nbsp;as platforms for smart contracts, data exchanges and primary use cases. & nbsp; One of the most powerful things Blockchain has done for business teaches us & nbsp;think blockchain, that is, to question the effectiveness of centralized processes and to think in a more strategic way to value chains.
Brian Lio, CEO of the Smith + Crown research and consulting firm:
Current markets reflect little about the current pace and the kind of development currently under way. We are seeing ever larger and more sophisticated multinational organizations that realize that this technology has the potential for both interruptions and opportunities. They are starting to feel that there is the risk of leaving it to others to understand first. More and more companies are realizing they need to build their front lines, to understand the power that this technology offers, so they can start preparing or even driving the construction of a blockchain-influenced future for their particular industry. It's happening in quite a few sectors. Companies are becoming more public about their exploration, but we are also witnessing a fundamental and innovative work that takes place behind the scenes.
David Post, Managing Director, IBM Blockchain Ventures
We have a high degree of confidence that 2019 will be the year in which corporate blockchain networks–especially those facing strategic sector use cases–it will begin to& Nbsp;emerge on a large scale. Blockchain business models will continue to mature, with both& Nbsp;companies and the venture capital community help shape how& Nbsp;these blockchain networks evolve. A variety of compelling& Nbsp;concepts are emerging in financial services, supply chain, media and entertainment. And we will see strategically important networks going into production, as companies collaborate with startups to solve complex challenges thanks to the greater trust and transparency offered by blockchains.
Linda Pawczuk, principal at Deloitte Consulting LLP
By the end of 2019, the supply chain continues to be one of the largest business applications for technology in recent times poll we found that 53% of executives interviewed said they had cases of use of the supply chain in progress for blockchain. We are seeing pharmaceutical companies, logistics service providers, retailers, government agencies and technology companies working to improve the visibility of the logistics network through blockchain technology. We are also seeing an increase in investments in digital recording, digital identity and IoT from companies. In the same survey, over 44% said they were working on an active use case using blockchain in at least one of these spaces.
Lou Kerner, founding partner of the CryptoOracle venture and consulting company:
Shakeouts are a natural part of our economic system. & Nbsp; Economies without shocks are unhealthy. & Nbsp; & nbsp; We are still in the investment phase of the infrastructure, building the tracks that the sector will use to grow applications and services and companies such as R3 (corporate blockchain), Coinbase (trading platform), Circle (finance company) and Ledger (portfolio) & nbsp; they are still attracting investments. & nbsp; Crypto-tors, like me, believe that Crypto is one thing. & nbsp; The question is less "if" than "when". & Nbsp; Companies that get the most funding today have fast-growing user bases or have big teams looking for great opportunities, like stablecoin.
These insiders paint a counterpoint measured to the sadness and ruin of the titles focused on the encrypted markets. However, the "winter encryption" has certainly had an impact on blockchain entrepreneurs, with the fall in prices that has caused collateral damage sometimes fatal to young companies. Smith + Crown & # 39; s ICO Tracker Shows the initial coin supply market (ICO) has cooled from 113 to December 2017 to only three in December 2018 .& nbsp; Bad treasure management practices have created cash crises for newly-established companies that have kept the funds in cryptocurrency after an ICO. Consensys and Steemit, two well-known companies in the space, have reported the layoffs in December, while many smaller companies are quietly closing down.
But as the market plummeted, it released another kind of pressure. The erroneous perception of the cryptocurrency price as an indicator of the potential blockchain had triggered the overly inflated expectations of the blockchain technology. In the (relative) quiet after the fall, blockchain entrepreneurs now have the space to explore how to build last year's work to create something truly meaningful. & Nbsp; From the outside, and next to the drama of 2018, measured but constant progress can seem almost boring. But inside the community, something very exciting continues to ferment. It requires only a more nuanced perception to see it.
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What lies behind encrypted winter? Blockchain development, disruptive energy collection.Getty
Last year, the perceptions of blockchain technology were caught in the crossfire of the rapid peak of cryptocurrency and dramatic collapse. It is not surprising: cryptocurrency is the first and most visible application of blockchain and many people think they are the same thing. It could be convenient and easy to use the price or market capitalization to summarize the narrative of the sector. But it is not correct. The blockchain space is vast, spanning industries, each with different curves and adoption opportunities, and the nuanced value of nascent technology is not reflected in these numbers. Indeed, focusing on these parameters obscures what is actually happening inside the space, putting executives at risk for developing blind spots that hide potentially disruptive development while collecting steam.
But when billions in the cryptocurrency occurred in 2018, we learned something significant. The world had a high-risk concept test by exploring if the blockchains could really be a way to securely transfer digital value from one side to another. Even though large-scale hackers of poor custodial companies have filled the news, millions of people around the world have contributed to a global battle test to see if technology could hold or sometimes transfer over a hundred billion of dollars of digital data value in the form of blockchain-driven cryptocurrency. This revealed future challenges (the need to evolve consensus and governance mechanisms, improve user experience and obtain regulatory clarity, to name just a few). But he also showed us that yes, blockchains can he transfer the digital value securely.
So, how do companies react? Companies are paying attention, working hard to understand how this functionality translates into their industry and how it can shape potential perturbations. Here are several internal perspectives on where we are today, and where companies invest in technology in 2019:
Jessica Groopman, industry analyst and founding partner, Kaleido Insights:
The market seems to enter a winter, as IA has done two or three times before its commercial boom. These types of shakeouts are ultimately a good thing because they help to distinguish facts from fantasy. There are signs that suggest this will be a mild winter rather than a full lethargy. First, several adjacent spaces are growing that will influence adoption, such as AI, cryptographic techniques and digital identity management. Secondly, we see some steps towards mainstreaming, with regulatory actions, consolidation in crypto-exchanges such as Coinbase and practically all the major technology companies in the world that build dedicated blockchain-based teams and products. Thirdly, investments are moving away from speculation, as in the ICO and towards practical investments as platforms for smart contracts, data exchanges and main use cases. One of the most powerful things Blockchain has done for business is teaching us think blockchain, that is, to question the effectiveness of centralized processes and to think in a more strategic way to value chains.
Brian Lio, CEO of the Smith + Crown research and consulting firm:
Current markets reflect little about the current pace and the kind of development currently under way. We are seeing ever larger and more sophisticated multinational organizations that realize that this technology has the potential for both interruptions and opportunities. They are starting to feel that there is the risk of leaving it to others to understand first. More and more companies are realizing they need to build their front lines, to understand the power that this technology offers, so they can start preparing or even driving the construction of a blockchain-influenced future for their particular industry. It's happening in quite a few sectors. Companies are becoming more public about their exploration, but we are also witnessing a fundamental and innovative work that takes place behind the scenes.
David Post, Managing Director, IBM Blockchain Ventures
We have a high degree of confidence that 2019 will be the year in which corporate blockchain networks–especially those facing strategic sector use cases–it will begin to emerge on a large scale. Blockchain business models will continue to mature, with both companies and the venture capital community help shape how these blockchain networks evolve. A variety of compelling concepts are emerging in financial services, supply chain, media and entertainment. And we will see strategically important networks going into production, as companies collaborate with startups to solve complex challenges thanks to the greater trust and transparency offered by blockchains.
Linda Pawczuk, principal at Deloitte Consulting LLP
By the end of 2019, the supply chain continues to be one of the largest business applications for technology: in a recent survey we found that 53% of executives interviewed said they had ongoing use of the supply chain for blockchain . We are seeing pharmaceutical companies, logistics service providers, retailers, government agencies and technology companies working to improve the visibility of the logistics network through blockchain technology. We are also seeing an increase in investments in digital recording, digital identity and IoT from companies. In the same survey, over 44% said they were working on an active use case using blockchain in at least one of these spaces.
Lou Kerner, founding partner of the CryptoOracle venture and consulting company:
Shakeouts are a natural part of our economic system. The economies without shock are the unhealthy ones. We are still in the investment phase of the infrastructure, building the tracks that the sector will use to grow applications and services and companies such as R3 (corporate blockchain), Coinbase (trading platform), Circle (finance company) and Ledger (portfolio ) They are still attracting investments. Crypto-tors, like me, believe that Crypto is one thing. The question is less "if" than "when". Companies that get the most funding today have fast-growing user bases or have big teams looking for great opportunities, like stablecoin.
These insiders paint a counterpoint measured to the sadness and ruin of the titles focused on the encrypted markets. However, the "winter encryption" has certainly had an impact on blockchain entrepreneurs, with the fall in prices that has caused collateral damage sometimes fatal to young companies. Smith + Crown ICO Tracker Shows the initial coin supply market (ICO) has cooled from 113 to December 2017 to only three in December 2018 . Bad treasury management practices have created cash crises for newly-established companies that have kept the funds in cryptocurrency after an ICO. Consensys and Steemit, two well-known companies in the space, have reported the layoffs in December, while many smaller companies are quietly closing down.
But as the market plummeted, it released another kind of pressure. The erroneous perception of the cryptocurrency price as an indicator of the potential blockchain had triggered excessive expectations on the blockchain technology. In the quiet (relative) after the fall, blockchain entrepreneurs now have the space to explore how to build last year's work to create something truly meaningful. From the outside, and after the drama of 2018, measured but constant progress may seem almost boring. But inside the community, something very exciting continues to ferment. It requires only a more nuanced perception to see it.
