The value of the leading Blockchain technology, Bitcoin cryptocurrency, dropped in the course of 2018. However, giants like Walmart and IBM still persist with Blockchain, as they believe in the enormous potential this technology has for creating value in the forms of secure transactions, innovative solutions, and so forth.
Reduced Scams and Hype
Firstly, just like any new technology, Blockchain attracted all kinds of investors looking to cash out fast. Some were legitimate and straightforward, while the majority were outright scammers.
Regulators have stepped in; hence most questionable operators will be removed this year. More so, the bad year of Blockchain (2018) has sieved out the fraudulent schemes and scammers from the genuine businesses and structures. Hence, this year, mainly genuine businesses will remain on or adopt Blockchain technology.
Blockchain will open up new investment possibilities. This technology allows just about anyone to invest in as well as track their investments in ventures that would otherwise have only been available to the upper class or institutional investors.
For instance, in the past, only the wealthy could invest in assets such as property, art, or even wines, because they can afford to wait years for these assets to yield profit. However, tokenization offered by Blockchain allows regular people to easily buy and sell digitally-backed ‘shares’ for these assets. This will lead to more liquid trading of these assets.
Blockchain will eventually be more regulated, and only then will these investment opportunities be considered safe. More so, smart contracts, a Blockchain feature, further lowers the bar for entry in terms of costs, as it reduces the reliance on middlemen, such as lawyers and brokers; this leads to even greater profit margins for investors.
Benefits to the Finance Industry
Cryptocurrencies are a game-changing piece of technology, and 2018 came with a fear that investment in this powerful tech is a bubble about to burst. As speculation grew, investors pulled out their coins, and this led to cryptocurrencies losing a lot of value that year. Despite this, the financial services industry is under no illusion as to the potential of this technology to transform their industry and disrupt their business.
Cryptocurrencies offer an innovative option to the traditional systems; an option that is fraud resistant and yield more profit margins; it is easily stored and transferred. Such technology cannot be ignored for long.
Convergence of Blockchain and the Internet of Things
Blockchain can be used for securing devices as well as data, especially in the Internet of Things. With proper regulation, more organizations will realize the value of employing this robust, distributed, encrypted ledger technology. As a matter of fact, the use of Blockchain to secure Internet of Things networks doubled in 2018.
For hackers to brute-force and compromise just one node of the Blockchain, they would require extreme computing power. Further, a DoS or DDoS attack is virtually impossible because of the decentralized nature of the Blockchain. These security facets of the Blockchain will be needed the most in the Internet of Things.
It is predicted that 26 billion devices will be inter-connected in 2019. The speeds of the communication taking place between these devices will be too much for humans to handle. However, Blockchain can be used to monitor and log all of these transactions and communications.
Cryptocurrencies will still be big business
Bitcoin and other cryptocurrencies lost value last year, and it will be overly ambitious to claim that they will somehow bounce back to regain their former values this year. Despite the fall, crypto prices are still currently ten times higher than they were in just two years ago.
On the one hand, over the years, one thing we’ve learned about cryptocurrencies is that you cannot predict their rise and fall. On the other hand, this low values have now shown relative stability, and we project that this trend will continue. People now see cryptocurrencies for what they are, rather than as a get-rich-quick scheme; therefore, this will usher in the inevitable, useful cryptocurrency ecosystem.