The goal that’s preoccupying everyone in the crypto industry is mass adoption. An infinite number of ICOs could each develop its own unique use for blockchain and cryptocurrencies but without pursuing the ultimate goal of mass adoption throughout the public sphere, these projects would be stuck serving a very small group of people and businesses.
This kind of stagnation could eventually even mean the shelving of the entire blockchain and crypto experiment. Furthermore, pursuing this goal of mass adoption is what drives the crypto industry forward, making individual projects better and pushing the boundaries of blockchain technology. It could be argued that having to work so hard for mass adoption is a positive motivation for the industry, ensuring that it becomes the very best version of itself to draw in new users.
One of the most critical elements of the crypto industry that needs to be constantly reevaluated and improved upon in the quest for mass adoption is security. Cryptos still suffer from relatively low confidence for security among regulators and policymakers, as well as some in the general public largely due to high-profile stories in the media about Bitcoin’s role in Silk Road and other Dark Web websites.
Meanwhile, many businesses have remained hesitant to dive in head first, seeing cryptos as volatile. And the market of 2018 did little to convince them otherwise. After a substantial growth of ICO fundraising in 2017, these projects faced severe backlash in 2018 due in part to the lack of security they offer investors. Exchanges and businesses that operate in the cryptocurrency space need to ensure security is their primary concern. Many have learned the hard way about the dangers associated with storing their private keys to cryptocurrency on a digital exchange.
But the underlying blockchain technology behind the ICOs of 2018 is far more resilient and holds much greater promise than any one project. While 2018-style ICOs seem to be on the decline in the near future, security token offerings (STOs) are about to take center stage in 2019.
Usually representing specific amounts of real-world assets, security tokens bring a new level of stability to the crypto market. Thanks to regulations tied to the assets they represent, security tokens also fit more comfortably than utility tokens into an existing framework that helps protect investors and consumers alike. Couple these qualities with the increased efficiency, speed and future liquidity of blockchain-based tokenization and security tokens appear ready to take over the market and encourage movement toward mass adoption.
As always, 2019 and beyond should see new technological and procedural innovations in the crypto industry as well to bolster cybersecurity defenses against hackers and errors. Those invested in crypto have plenty of incentive to encourage mass adoption by providing uncompromising security. Partnered with the evolution of STOs, these new developments are making 2019 look like an exciting year for crypto on its path towards mass adoption.