The emergence of blockchain in recent years has been astounding. Since its inception in 2018, it has taken quite a turn. Although blockchain is still in its infancy, it has caught headlines in the technology space. Apart from the banking industry, we have also witnessed other organizations adopting blockchain.
2019 promises nothing different, after much research and evaluation, these are the top 7 blockchain trends one must be aware of this year. If you’re a blockchain engineer these are the trends you might need to look out for this year.
● Decentralized Exchanges
Most of the crypto exchanges that are found today are centralized companies which have been incorporated and compliant with the state and federal regulations. This is one reason to form a new set of companies that offer decentralized exchanges using blockchain technology, this will eliminate the use of a third person or a middleman. But there can occur the SECs clampdown on these companies as to whether the decentralized exchanges can be abided by the U.S. security regulations.
● Security Tokens
A new financial system can be built using blockchain. The word ‘security tokens’ are assets that are being represented digitally on a blockchain. For instance, if a real-world asset is brought out onto, blockchain will be able to migrate them and democratize access. This can be a challenge to satisfy different stakeholders.
But with security tokens, this could appear much more promising since security tokens actively seek compliance, unlike their utility token counterparts.
● Stable Coins
The year 2019 will be seeing a boost for stable coins. Although cryptocurrencies are products of blockchain and they are still volatile. Because of this, the rise of stable coins comes into existence. These coins (stable coins), unlike cryptocurrencies, have a stable price. This does not affect the market condition and it also ensures that this stability is well maintained always. Tether is a great example of a stable coin. The stable coins are fiat-backed, but there are other stable coins as well which are backed by cryptocurrency, commodity or either belong to the non-collateralized. One more point to be noted, the stable coins run on centralized system and rule, and this still creates trust issues with investors.
● Identity Management
It is said that identity management will help to establish one’s own identity online, including existing custodians’ personal data and government as well. This is one trend to watch how blockchain is making use of such applications.
● Smart Contract Platforms
Ethereum is a well-known platform and automating agreements across industries through such platforms is quite easy and is built specifically for smart contracts. The smart contract is a code that is placed on blockchain that further digitally enforces performance of contracts. This year might be a year of competition for smart contract platforms.
● Hybrid Blockchains
The word hybrid itself defines that hybrid blockchain is going to the best combination of two worlds by providing the best features and functionality of both public and private blockchain. Example, a government cannot go decentralized using a public blockchain but for this, they can use a private blockchain in certain cases of services.
The hybrid blockchain is a perfect solution that provides customizable solutions making proper use of what this technology offers such as security, integrity, and transparency. Some examples of hybrid blockchain include banking, supply chain, IoT and enterprise services etc.
● Blockchain as a Service (BaaS)
The blockchain is said to be a game-changing technology, the reason why startups and many other organizations are already paving the way to finding their own blockchain solutions. But there is a downside to this, it isn’t always practical to create and maintain your own blockchain solution, this is where blockchain as a service does the job. BaaS is a cloud-based service that offers customers in building their own blockchains powered products such as contracts and apps and other products. Companies such as Microsoft, Amazon are already making use of this cloud-based service.
It is also said that BaaS will be in more frequent use this 2019.
The impact of blockchain is still developing and will not be overlooked, which is why 2019 is going to be a promising year for those looking to get hold of a career in the blockchain.