- According to MIT, blockchain is going to be common and boring this year
- this will be the year which focuses on practical uses of blockchain technology, rather than the hype witnessed in 2017
- Big companies such as Wall Street firms and Walmart are also creating blockchain systems, which the MIT report says could affect how people will perceive blockchain in 2019
Known as the game-changing technology set to revolutionize industries, blockchain is predicted to become common and boring in 2019 – at least according to MIT Technology Review. In one of their statements, they said:
“In 2017, blockchain technology was a revolution that was supposed to disrupt the global financial system. In 2018, it was a disappointment. In 2019, it will start to become mundane.”
The future is here – and common
Despite the prediction that blockchain technology will become mundane this year, it is expected to also become more useful.
There are some cryptocurrencies that are down by more than 90% from their peak in 2017. However, the technology underlying these cryptocurrencies is still useful. While many people still find the concept of blockchains new, it has been in the making for decades. In fact, many blockchain developers who joined the industry in 2017 are still working in it. They continue to produce innovative-sounding projects and are close to getting results. Moreover, there are also several big corporations that plan to present major blockchain-based projects this 2019.
Besides these factors, there are other reasons why blockchain technology will become normal in 2019. Here are some of them:
- The Big Names are Starting to Use Blockchain
Walmart has announced that they have already been testing a private blockchain system for years as a food supply tracker. Next year, they can start using the system to improve their processes. The multinational retail company has even instructed their suppliers of leafy greens to join by the month of September.
As for the cryptocurrency side, Intercontinental Exchange (ICE), which is one of the most influential players on Wall Street and the owner of the New York Stock Exchange, is planning to present their very own digital asset exchange by early 2019. Fidelity Investments has also recently launched a new company called Fidelity Digital Assets, which offers custody service for crypto-assets.
- Smart Contracts
Smart contracts execute an agreement between two parties. The idea has been used since the 1990s. Ethereum was created specifically as a blockchain that could run the smart contracts.
With the technological improvements, Chainlink, a startup company, has recently worked with academic researchers to make the first ever “provably secure, decentralized oracle network.” The oracles use a secure hardware called a trusted enclave and cryptography in order to securely feed data to smart contracts on the blockchain.
Smart contracts might be practical this year in legal technology. Chainlink has partnered with OpenLaw to develop smart-contract-based simple legal agreements.
State-backed digital currencies
While Venezuela’s Petro, a supposedly oil-backed national cryptocurrency, was not a success, there are 15 central banks worldwide that are taking a serious look at creating national digital currencies. Thus, it can be expected that the discussion about them will start to heat up in 2019. By then, cash use will continue to decline around the world and new payment technologies such as cryptocurrencies will improve.