Blockchain technology is constantly evolving. It has new opportunities to facilitate the storage and transmission of data, as well as to increase its security level. It allows improving a number of technical tools of high-tech gadgets without increasing the cost of the ready-made, one-stop solutions to the moon, all while keeping to the price level of competing solutions offered by tech giants like Apple or Google.
Last year proved to be highly transformative for the entire industry as a more realistic and business-oriented approach was developed by the representatives of the major projects. The facade of hype was washed away by the cold reality of the need for making money. Client orientation seems to have taken hold as the clients themselves started putting forward demands before blockchains and raising questions about scalability, interoperability and cost-related issues. As a result, the technology had to evolve at a breakneck pace to cater to the demands of giants like Walmart, JPMorgan Chase and others.
Many companies are leveraging blockchain technology to simplify internal tasks. It allows companies in various industries to cut costs and increase revenues while providing smarter customer service. One of the latest announcements was Walmart’s decision to join the blockchain consortium Hyperledger. The project already has a number of large companies as members, including IBM, Intel and J.P. Morgan. According to Deloitte, 80% of business leaders believe the blockchain technology will be critical or important to their strategic priorities.
Big Changes Are Around The Corner
The way I see it, the emerging trends become evident after analyzing the events of 2019 and deriving some logical conclusions based on the realities of the economy and the demands placed before blockchain projects by the clients of mainstay industries, namely financial ones.
First and foremost, the token market is likely to be significantly reduced this year, and only the most highly demanded and well-developed projects will remain as the digital assets traded on exchanges that are increasingly being forced to comply with legal requirements. Another change this year will be a gradual transition to turnkey solutions. The idea of blockchain turnkey solutions was first presented by Bitwings, an official blockchain-based solution of the leading Spanish mobile operator Wings Mobile. Its goal was to create the most secure standards for e-devices without compromising the operating system and its performance.
To integrate turnkey solutions, companies need to conduct internal research: analysis of the current market and existing problems, and the potential of the blockchain in different sectors. It’s also worth studying the existing centralized and decentralized solutions and deciding how to integrate the solution into production processes without disrupting their performance. The latter is the most important point; it is one that all executive officers should pay attention to. They must consider the most efficient options for integrating blockchain into their working processes.
Scalability, Security And Cost-Related Issues To Be Solved
Based on what I’m seeing, it is becoming clear that blockchain scalability is fading into the background as new technologies are nudging blockchain systems to mass adoption by businesses. The two remaining issues that are yet to be resolved are security and the efficiency of network operation in terms of throughput and transaction speeds — the cornerstone advantages of the technology over its centralized competitors.
Nevertheless, some blockchain-backed projects have already presented solutions and their prototypes. For example, by aiming to create a more competitive framework and prepare the blockchain technology for wide adoption, the ILCoin project focused on developing viable on-chain data storage solutions that offer 5 GB, large block sizes and the highest transaction speeds.
Security issues can be solved globally by integrating the RIFT protocol that offers interoperability with any internet-connected device, making it a universal solution for many businesses. Moreover, when it comes to the business needs, RIFT solves scalability limit issues and creates efficient on-chain storage, ensuring a high level of data security.
Speaking about RIFT, Norbert Goffa, co-founder of ILCoin, compared it to Visa: “RIFT — with its 5 GB block — has an up to 10-times faster transaction speed than VISA does. However, this is not the point, as we are not really interested in winning the war of numbers. The fact which is most important to us is that, by RIFT, we have established the foundations for economically efficient on-chain data storage.”
I believe the blockchain market is in for serious qualitative changes in 2020. But none of them will be possible without improvements to the technology as the acute need for monetization is pressing hard and the growing pressure from governments is rising. Legality and regulation aside, scalability and interoperability issues stand as the main challenges for adoption.
If the scalability problem is being solved now, the success of solutions to the interoperability problem is still in question. Many companies are in the negotiation phase with the goal of collaborating and creating new turnkey solutions to take the blockchain to a new level and introduce it to the masses.
Another Round Of Blockchain Development
Thanks to new technical solutions, I’m seeing more and more industries switching to blockchain in business-to-business (B2B) and business-to-consumer (B2C) transactions. Soon, the blockchain will likely penetrate almost all key industries — from critical infrastructures, education, advertising and retail, to insurance, healthcare, supply chain and entertainment management. If the current efficiency and security issues are resolved, the era of mass blockchain adoption will become the next and most significant round of development, and businesses should be ready.
This article was first released on Forbes Communication Council