When you hear of Blockchain, what’s the first thing that comes to mind? Cryptocurrencies? I know I guessed right! Don’t be alarmed, I’m not a mind reader. Cryptocurrencies have generated a lot of Buzz over the years and that isn’t about to change. There’s more to the use of Blockchain and its impact across many verticals has not gone unnoticed. Even at that, we are not done harnessing the potentials of the blockchain. And there is still so much that the future will bring. Here are some of the Blockchain trends that you should expect to manifest in the nearest future.
The Utility token market saw a slowdown in 2018, and since then, the arrival of utility tokens has been the talk of the town. A reason for this can be attributed to the low turnout of institutional investors. The Initial Coin Offerings (ICO’s) of Utility tokens are not substantial enough for investors, who are used to buying stakes in companies.
This low turnout can also be traced to the prevalent rate of scams, which led to distrust among investors. Security tokens, on the other hand, are offered through Security Token Offerings (STO’s) which protects investors rights and redefines the whole process through which companies and startup’s raise money. The market infrastructure for listing and trading security is still under construction, but the change is coming.
2018 witnessed major crypto exchanges applying for brokerage licenses to get things started. The market is still new, but we can expect to see the opening of exchanges that can trade in security tokens soon. Crypto exchanges like Binance, Lykke and Coinbase are seeking regulatory clearance for security tokens and With Traditional players like London Stock Exchange and The Swiss stock Exchange developing digital asset platforms, we can already sense that something big is cooking.
The revolutionary qualities of the blockchain are not one that the business world has been able to ignore. As a result, many businesses and organizations are already working on their own blockchain solutions.
Creating, managing and maintaining a blockchain could be a lot of work, and this is where the Blockchain As A Service (BaaS) comes in. It is a cloud-based service that allows customers to build their blockchain powered products which could be smart contracts, applications, and other blockchain features without the need for setting up, managing or executing the complete blockchain based infrastructure.
Tech giants like Amazon, Microsoft and others already provide this Blockchain Development Service. The adoption of BaaS is set to increase in the coming years. It will give more businesses access to the blockchain technology without the initial investment and rigor that will normally come with it. Some use cases of BaaS include resource sharing, contract execution, performance contracts, document origin tracking, etc.
Different versions of blockchain are popping up, but the Hybrid blockchain is definitely one to look out for. The hybrid blockchain provides double benefit; it works by providing the best features and functionality of the public as well as the private blockchain solutions. It consists of the public blockchain (that all participants can access) and a private network that restricts participation to those invited by a centralized body. It is an enterprise-ready blockchain solution that is well suited to highly regulated enterprises and governments, as it gives them flexibility and control over what data is kept private and that which is shared on a public ledger. The benefits of a private blockchain include faster transaction speed, privacy of data and centralized control over access to the blockchain.
Some use cases of hybrid blockchain include supply chain, enterprise services, hybrid IoT, banking, etc. The enterprise need for a suitable blockchain solution for large enterprises has led to the creation of several hybrid blockchain projects including IBM’s hyper-ledger, R3 consortium and Enterprise Ethereum Alliance.
The federated blockchain is another evolution of the normal blockchain and it is perfect for many specific use cases. It is an advanced form of the basic blockchain model. It is just like the private blockchain but has a specific twist to it. Instead of one organization controlling it, many authorities can control the blockchain or pre-select nodes. The selected group of nodes ensures that blocks are validated for processing transactions. This means that multiple entities will be using the network, reestablishing a decentralized type system. This way, multiple organizations can exchange information and work simultaneously. We can expect a rise in the use of the federated blockchain.
Experts say the use of federated blockchain will rise because it provides private blockchain development with a more customizable outlook. Some use cases of the federated blockchain include supply chain management, insurance claims, financial services, etc. Some leading federated blockchain projects include Voltron, Marco Polo, B3i, and Batavia to mention a few. Walmart’s use of IBM’s blockchain for food traceability has been another great application of the federated blockchain.
The blockchain interoperability is the ability to share data and other information across many blockchain systems and networks. The fact that blockchains operate in isolation has made it impossible for people to enjoy the full benefits of the blockchain ledger. In a fully interoperable blockchain community, if a user from another blockchain sends you something on your blockchain, you will be able to fully recognize and interact with it.
It allows for different blockchains to easily communicate among one another without an intermediary. This makes it easier for the public to see and access data across different blockchain networks. The coming times promises an improvement in the technology that enables blockchain interoperability.
Vendors like Wanchain, Aion, Blockchain, and others are already working towards the goal of enabling or improving blockchain interoperability using cross chain technology. Wanchain 2.0 fully connected to Ethereum is the best interoperable blockchain with secure multi-party computing.
From examining all these blockchain trends, one can say the blockchain has a very bright future, and the blockchain is set to have a huge impact on the way we do things.
What do you think about these blockchain trends? Share your views in the comment section below.