The main technological trends of Blockchain emerging in 2019

The blockchain technology made its official appearance almost a decade ago in the year 2009 and since then we have seen the transformation of the blockchain right in front of our eyes. From the retail sector in the healthcare and medicine sectors, blockchain technology has spread to various vertical sectors.

If we look at the initial moment of this emerging technology, we must focus exclusively on the last five years. This is because ICO led Mastercoin for the first time in 2013 and only a year after one of the most popular bitcoin exchanges in Japan, My Gox collapsed.

2015 was the year when Ethereum was launched with its new Smart Contract feature and, in the same year, Coinbase collected a total of $ 75 million. And in just two years, IBM technology giant made a huge announcement of collaboration with European banks to build a blockchain-based financial trading platform. That said, let's talk about the major emerging blockchain trends in 2019 that will provide us with more information on the future of the blockchain.

The main emerging trends in blockchain in 2019

There are many blockchain solutions that can be easily defined as the best blockchain trends, so let's see what future blockchain trends will make it big in 2019 and why:

1. Blockchain federated

The term Blockchain federated can be defined as one of the best blockchain trends that are basically an updated form of the basic blockchain model, which makes it more ideal for many specific use cases. As for many experts, we can say that there will be an increase in the use of the federated blockchain because it provides a private blockchain with a perspective that is more customizable.

For most of the part, federated blockchains are quite similar to private blockchains, but there are still a couple of differences present. For example, in this type of blockchain rather than in an organization, there are more authorities to control the pre-selected nodes of the blockchain. Now, this selected group of various nodes will make sure to validate the block so that transactions can be further processed.

Key points to know about the federated Blockchain:

• The federated blockchain operates under various authorities instead of following a single secure and highly reliable node.
• Here, the authorization nodes are previously selected by different organizations that are connected to this blockchain network.
• The selected group will be responsible for network maintenance and block validation.
• In this network, only the group has access to restricted areas.

The best cases of use of the federated blockchain:

1. Financial services
2. SCM, for example Supply Chain Management
3. Insurance claims
4. Security of organizational records
5. Multiparty aggression

2. Stable coins

As we all know, cryptocurrencies are basically a secondary product of blockchain technology and one of the main things is that they are volatile. As of now, stable currencies are in their early stages and 2019 is expected to be the year in which the stable coins of the blockchain reach their historical highs.

Main applications of stable coins:

1. Additional levels of security against currency crashes: As the name suggests, stable coins are constant and do not oscillate often, so the user does not have to worry about currency crashes. This also allows users to invest in multiple cryptocurrencies.

2. Quick and convenient remittances: The process of sending remittances abroad is now simplified with the help of these stable currencies. Another thing about these coins is that they are very fast and have the same value as flat coins.

3. Simplify recurring payments and P2P: We understand that making peer-to-peer (P2P) payments is much simpler with stable coins. Users can even use them on smart contracts to conduct automatic payments.

4. Stable currency exchanges: Stable currencies can also contribute to stabilizing the market while improving the overall situation of the cryptocurrency market. This will also eliminate further unnecessary risks and regulations.

5. Normal currency: The currency of stable currencies can be used regularly as daily currency similar to Fiat money and legal backups. For example, you can use them like any other digital currency to make purchases online.

Limitations of stable coins:

• Unstable: Stable currencies supported by crypts or raw materials may become unstable due to sudden price arrests. This could be a big problem because it is not clear yet how stable currencies will come back if the value of their resources decreases in real-world experience.
• Trust issues: Because of the centralized nature of stable currencies, users can not completely trust their system as they still need to demonstrate their applications in the real world.
• Regulations: Most of the coins have the same rules as Fiat money and this is why this claim clashes with the main objective of cryptocurrencies.
• centralized: The stable coins operate on a centralized system that substantially contradicts the primary nature of the blockchain technology.

3. Blockchain as a service (BaaS)

Another blockchain solution is BaaS, which stands for Blockchain As A Service, is a new blockchain technology currently integrated by a number of startups and businesses. But such future blockchain trends may not always be feasible when it comes to creating, maintaining and managing a new blockchain solution.

For this reason we are now available for BaaS, the Blockchain As A Service, a cloud-based service that allows users to develop their digital products working with blockchain. These digital products can be smart contracts, applications or even other services that can function without configuration requirements for the complete blockchain-based infrastructure. Some of the technology companies that already provide the BaaS service are Microsoft and Amazon.

4. Security token

Two years ago, Ico talked about the city and now they have been replaced by the STO. There are many reasons why blockchain security tokens will be a major trend blockchain, for example, about 50 percent of ICOs have turned out to be a scam that automatically affects investor confidence. This is the part where the security token that STO offers has started to emerge in the field of technology.

In other words, ICO can be defined as a symbolic offering from an organization or company for the purpose of raising capital for a particular project. ICOs are also highly unregulated, which makes them more risky for investors. The fundamental difference between security tokens and ICOs is that STO is regulated.

Benefits of using security tokens:

1. In the case of STO, the founders of the company need not invest in a specific token-use case to increase revenue. Here, all tokens are supported by some already declared resources.

2. Security tokens also offer various legal rights, such as revenue distribution, voting, etc. This also adds an additional level of security to the resources that are stolen.

3. In addition to this, STO also provides a fundraising solution that is very transparent compared to other services for both investors and companies.

Main problems with security token:

• Not a popular option: Security tokens are not yet a popular option as the major cryptocurrant exchanges are not yet supporting STOs. But some of them have started to emerge in the blockchain market.
• Requires administration: The offer of blockchain security tokens requires the official administration by financial authorities that also increase legal costs.

5. Interoperability in Blockchain technology

The term interoperability blockchain can be defined as the ability to share data and other information on multiple blockchain systems and networks. This feature makes it easy for the public to see and access data across different blockchain networks. For example, you can send data from an Ethereum blockchain to a specific EOS blockchain.

Advantages of the interoperability between blockchains:

1. Blockchain interoperability makes it easy and simple for users to make one blockchain transactions on another.

2. In addition to this, this function also offers a number of different functionalities, such as transversal transactions.

3. Interoperability also improves multi-token transactions with the development of multi-token portfolio systems.

Some notable suppliers of blockchain interoperability:

• Blocknet: The Blocknet is a project that is constantly committed to building a decentralized exchange in an attempt to exchange an interexchange communication.
• Wanchain: The Wanchain project aims primarily to exploit cross-cutting capabilities to improve the connection between the consortium, public and private blockchains.

6. Ricardian contracts

A Ricardo contract can be defined as a legible human-readable agreement that is also agreed upon and signed by both parties involved in the contract. It is also converted into a machine-readable contract that also defines the listed intentions of the parties involved.

Basics of the Ricardo contract:

1. Flow: The flow of this type of contract can easily automate operations on various blockchain applications based on this technology.

2. Purpose: Ricardo's contract also records the terms of an agreement as a legal document.

3. Versatile: In the case of any Ricardian contract, it can also be referred to as an intelligent contract.

4. Validity: This blockchain contract is a legally binding agreement / document.

5. Readable: Ricardo's contract is both machine and legible.

Benefits of the Ricardian contract:

• It acts as an intelligent contract as it not only defines the intentions of both parties involved in legal terms, but also executes additional instructions.
• The costs related to these blockchain contracts are relatively lower and, in addition to this, the Ricardian contract also saves users time and effort.
• Since this is a binding legal agreement, both parties can end up in court if something goes wrong according to the details of the contract.

7. Hybrid blockchains

Subsequently, in the list of the new blockchain technology in 2019 there is the hybrid blockchain which can be simply defined as the blockchain which tries to use the most appropriate part of the public as well as the private blockchain solutions.

If we opt for an example of an ideal world scenario, the hybrid blockchain will be mainly controlled through various platforms. On the other hand, there are some processes for which the processes are declared as private while the others remain public.

Main advantages of hybrid advantages:

• Transaction costs are much lower because the influential nodes in the network make the process simple and quick to verify transactions.
• The hybrid blockchain operates in a closed ecosystem so that every single piece of information remains protected on the network.
• As with reports, it also protects against more than 50% of attacks because hackers are unable to access the blockchain network.
• Here, the user has the ability to change the rules when there is a requirement.
• In addition to all these points, the hybrid blockchain also helps maintain project confidentiality while communicating with the outside world.

8. Streaming contents

Content Streaming is one of the emerging trends of the 2019 blockchain technology that will be very popular in the coming years. Movie streaming companies such as Hulu and Netflix can incorporate this technology and its solutions in order to store user data securely and easily.

There may be many other blockchain solution applications compared to its properties like federated interoperability and blockchain, etc. Such video, music and social media streaming companies may also opt for a similar blockchain technology API that will allow third parties to read and even write information about the respective blockchain itself.

Final thoughts

Looking at all these blockchain technology trends, it can be said that the 2019 year will be a fairly significant moment for this emerging technology in various industries. Although, one can not deny the fact that blockchain technology probably has a different impact on many vertical sectors.

We hope this article on the future of blockchain technology and its trends in 2019 will provide you with some valuable information about it. Besides this, there are many other trend blockchain that are worth mentioning so stay tuned to MobileAppDaily so you never miss out on such interesting updates. And be sure to click on the "Subscribe" button to follow us!