What’s in for Blockchain in 2019? An Interesting & Informative Read
Blockchain has been revolutionizing business for the last few years. It has proven its mettle from a technological angle and still has a lot to offer in this year. It would be interesting to see what this technology will come up with, in this year and how will it enhance digitization. Prior to that, let us understand the basics of blockchain.
The Primaries of Blockchain — What, How, Why?
What is Blockchain?
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” — Don & Alex Tapscott
“Blockchain technology” has been in news with reference to terminologies such as Bitcoin and other cryptocurrencies. It has been an inevitable component for these technologies. It started off as that hash tree, better known as a Merkle tree and handled the verification of data within computer systems. It entered the industry in the wake of global economic crisis about a decade back, originally devised for the digital currency, Bitcoin.
Simply stated, blockchain is a decentralized database or ‘digital ledger’ that arranges ordered blocks of transactions which all on the network can witness. But today, by letting digital information to be distributed and not copied, it has spread its wings, expanded its boundaries and created the fundamental backbone of a novel type of internet. It helped in better verification of data maintaining the integrity and security of data.
How does it work?
To understand how blockchain works, imagine a spreadsheet that makes its duplicates multiple times across a large computer network. And then taking it a step further, think of a mechanism that regularly updates all these spreadsheets at a time. This gives a rough idea of how blockchain operates.
-> Shared and recurrently reconciled database that holds information on a blockchain and that too on multiple locations in a certifiable manner
-> Data through blockchain is reachable to anyone on the internet and is hosted by numerous computers concurrently
-> Operates harmoniously with a programmed checking every few minutes
-> The entire set of data is public, transparent and secure. It is not possible to corrupt these blocks of information since it is spread all through the network
Why is it so popular?
-> Highly durable and robust due to its decentralized structure and a global network of computers operating it jointly to manage the database
-> High transparency since data on a blockchain is more accurate and consistent. It is also available to all contributors who have access
-> Cost effective as it needs lesser middle level intervention and has a direct dealing between stakeholders
-> Creates a powerful second level network offering a different vision of how the internet can be operated
-> Personal computing is available to the general public with blockchain and there is utmost security with decentralized storage
-> Offers a second level of network and a new layer of functionality with added security
-> With blockchain, transactions can be finished faster and more competently. Unified reconciliation, less clutter and instant sharing
Number of Blockchain wallet users worldwide from 1st quarter 2015 to 3rd quarter 2018
Blockchain Trends in 2019 — A Promising Year Ahead
“Disruptive technologies such as Blockchain & the Internet of Things, will have a profound impact in the way we live and work” — Hon’ble PM Narendra Modi, India
Cloud-based Blockchain As A Service Picks Up Pace:
With increasing popularity, blockchain has been receiving great reviews and its demand is rising high. But, as the need increases, it isn’t advisable to have individual blockchain solutions. Here comes the concept of a Baas — Blockchain as a service, that can facilitate clients to create, manage and maintain their own blockchain enabled portfolio barring the need for setting up the entire infrastructure. This could include blockchain enabled components such as smart contracts and applications. There are tech giants like Amazon, Microsoft etc. who are leveraging the potential of this innovative cloud-based service and this year is sure to witness increased users. This feature will also assist enterprises to use the blockchain technology without the botheration on budget issues.
Capturing the Best of Both Worlds with Hybrid Blockchain:
As the name suggests, the hybrid blockchain will bring the best of public as well as private blockchain technologies. As a flexible and customizable solution, it will capture the optimum features and functionalities of both, giving the best of transparency, robustness and security that blockchain offers. At places where either of them — public or private may not suffice, the hybrid version works best. It has been getting popular in areas such as Internet of things, banking and finance, supply chain and logistics etc. and this year will surely witness an increase in its portfolio.
Blockchain Gets More Scalable and Performance Driven Over Time:
As the technology parameters advance, blockchain gets more performance driven and focusses more on scalability. Till now, there has been less focus on these areas and now the time has come when scalability and performance get more weightage.
Security Tokens Are the Face of a Secure Future:
Security has always been a matter of concern as technology advances rapidly, including the fast progressing field of blockchain. Security tokens is the apt method to a secure solution that takes care of data protection and offers a fully protected layer of security. This model will be highly cost effective and hence will be adaptable and acceptable to retailers, offering an enriched model of investment for relevant stakeholders. Veterans in the industry have been claiming that security tokens is the face of the future.
Enterprises are Keen to Identify Places Where Blockchain Could Be Leveraged:
It is not only usage of blockchain that is increasing, it is also identification of places where blockchain can show its best performance that is catching up. Organizations are now keen to understand what type of business workflows are best suited to implement blockchain techniques. Blockchain has its own set of peculiarities which are better understood with time.
Blockchain Will Move Out of the Financial Transaction Mode to Offer More:
Till now, blockchain has been synonymous with financial transactions. This year will show the spread of the same to other industry segments with equal success ratio. Cryptocurrency and blockchain are not the same — as understood till now. Blockchain will now enhance its portfolio to many other domains apart from the financial one.
Extracting the Finest from Private Blockchain with Federated Blockchain:
Especially meant for certain specific conditions, as an extrapolated feature to private blockchain, Federated blockchain is rising in popularity. It is a progression to private blockchain in which there are multiple establishments that can control the blockchain. There is no single organization having control over it. Industries such as insurance privileges, financial facilities, supply chain management etc. have already experienced the worth of federated blockchain and there are many more which are sure to experience it soon.
With Varieties of Blockchain Networks, Interoperability Is Important:
Over a period, there are newer blockchain networks with a variety of speed, processing power, workflows etc. It is important to have information sharing within different networks with enough transparency, security and robustness. These services enhance operability within systems though on a small scale right now. But the new year will witness increased usage of interoperable networks.
Human and Computer Readable Contracts Will Be Needed:
Now comes the time when not only computer readable text is needed, human readable text is equally needed. That is where smart contracts move a step further to bring in Ricardian contracts. These contracts offer legal contracts that can have cryptographic verification and signature.
Exploring and Understanding Blockchain Will See New Heights:
Till now, blockchain has been showing its potential and there are increasing use cases with successful stories. But there has been limited exploration in terms of newer tests, validations and challenges. This year, with a higher comfort zone, organizations will feel free to experiment more and garner the best of results with a stringent preparation right from start.
Ricardian Contracts Will be Trending in 2019:
As an official contract for a unified understanding among stakeholders, Ricardian contracts, with its human readable text, will be a trending topic in this year. It is ideal for binding technology with legal formalities, wherein the contracts undergo verification with cryptographic signature. It is the apt medium for human and computers to interact with each other without any third-party intervention.
Many Off-chain Mechanisms Will Accompany Blockchain Technology:
In the world of enterprises and global working, there is much than just the blockchain technology when it comes to implementing it. there are multiple off-chain mechanisms which play a pivotal role in the success of business, for e.g., UI, APIs, security, user and role management etc. Smartness lies in integrating blockchain along with these varied components.
IoT Will Integrate Seamlessly with Blockchain:
IoT has carved a niche for itself globally and there are barely any industry domains or any personal space where IoT hasn’t proven its mettle. Blockchain, being one of the leading technologies, has already begun its integration with IoT and this year will observe it increasingly. A seamless merger between both is sure to fasten implementation at all ends, giving out a robust and secure application.
Apps Will Get Further Decentralized:
Blockchain ensures trust and immutable records which is possible only if there aren’t too many apps using the blockchain and not depending upon a central application. Hence, the coming time will see decentralization of apps to ensure full-on trust. There need not be a unified point of control to avoid any kind of theft, misuse or phishing. This is tough but very much needed in today’s time.
Blockchain Will Advance Further as a Broadened Ecology:
There is so much happening in the world of blockchain already. Newer and varied updates will be available in the new year depending upon requirements and demand. There will be higher demand for some and lower for some. It isn’t a ‘one size fits all’ concept at all. Enterprises will have to be ready to accept technological changes as needed, to get the best of results.
As We Welcome 2019
As we are in the start of 2019, awaiting a lot to happen in the year to progress, there is a lot in store for Blockchain technology and the world is sure to enjoy the potential of this wonderful advancement. There will be untouched areas around the globe that will leverage its potential and experience the benefits of the same. It will be an interesting watch, isn’t it?
