Since its introduction in 2009, the blockchain technology has become the backbone of Bitcoin and thousands of crypto coins. The digital ledger or blockchain allows information to be distributed across online channels without being tampered, making it safe and reliable. It also eliminates the need for middlemen who serve to verify such transactions manually due to its security features.
Throughout the years, several developers have noticed the numerous potential this technology can bring due to its decentralized and incorruptible features and has since adapted blockchain in other uses. Ten years later, you can expect that this technology will continue to be applied to various trends that could influence the financial technology (fintech) market tremendously.
Here are some blockchain trends one can expect in 2019:
1. Continuity of Initial Coin Offering Security Efforts
Businesses looking for growth may require help from financial experts such as Capstone or create initial coin offerings (ICOs) as a means to raise funding for various projects and developments. Instead of offering company stocks and shares, owners generate crypto coins with blockchain which offers future benefits for early investors.
An ICO is the fintech equivalent of an initial public offering (IPO). However, because most of the ICO transactions are done online, it has opened the room for abuse. While online transactions provide ease in trading, ICOs have garnered a reputation for being unsafe and eventually became associated with various company scams.
Here are some trends that can be forecasted for 2019:
Additional blockchain security in relation to ICO companies
People paying more attention to the blockchain technology in the product than to the actual company
Additional support to and closer inspection of ICO companies
2. Stock Exchange Companies to Include Security Assets
In 2019, developers will attempt to use blockchain technology to verify security assets. They are currently on its testing and regulation stages, and there are still many things to do before the security assets will become tradable. However, a lot of stock trading platforms are developing upgrades to accommodate security assets in the future.
Here are some of the foreseen security assets benefits:
More secure transactions of assets such as stocks, bonds, and other properties
Better transaction records without human intervention
3. Regulation of Security Token Offerings
In 2019, more investors will likely contribute to the growth of blockchain technology since the SEC is taking measures to keep investors from being exploited. To reduce the number of scams, security token offerings (STOs) are provided as a secure alternative for private companies who need project funding.
Unlike ICOs which allows parties to generate their coins almost instantly, STOs must first be registered with the Securities and Exchange Commission which prevents fraudulence and allows transparency in company practices. With regulation and interference, STOs will become a good investment platform for legitimate companies with great blockchain technologies.
3. Application to Several Businesses
In 2019, Älvsjö, Stockholm, will host the Stockholm Blockchain Forum, an open forum that welcomes blockchain experts from around the world to discuss the actual uses of blockchain technology in various fields. The forum will discuss topics including regulation, decentralized governance, banking opportunities, and various insights on how different industries utilize this technology in their workplace.
Considering that blockchain technology has been long associated with cryptocurrency, it would be interesting to see how others can take advantage of its uses without necessarily generating coins. Companies may even put effort into developing a better understanding of such technology and make investments that could strengthen its employees’ literacy.
The Journey from 2018 to 2019
As 2018 is ending, we can look back and take note of the following events that have happened so far:
The continuation of the cryptocurrency hype.
The ongoing adjustments needed to make blockchain more secure.
Several enterprises were intrigued but are yet to apply or tap into its full potential.
With hurdles out of the way, 2019 will most likely be the year that many plans will come into fruition as several companies are open to the possibility of using blockchain technology in their daily operations.
Not everything is completely set in stone, so remain updated on the fintech industry. Considering the Stockholm Blockchain Forum will take place in the first quarter of the year, get ready to see some changes between May and August where certain projects will surely make their debut. Some projects may be exciting to hear at first, but try not to jump at every opportunity just yet as blockchain developments will most likely continue even after 2019.