Blockchain evolution over the past few years is simply breathtaking. We’ve witnessed plenty of blockchain use cases other than cryptocurrency space. Despite the unpleasant critics about the hype of this phenomenon, Blockchain is still on the agenda of small and large companies. Considering its growth till the date, blockchain is poised to evolve even further.
Right from Blockchain As A Service (Baas) To Hybrid Blockchain And Beyond, we have identified five unbelievable blockchain trends to watch for in 2019.
What blockchain technology has in store for us in 2019?
Experts at Cygnet Infotech after their relentless research have estimated that these five blockchain trends will pick up pace throughout 2019.
1. Blockchain as a service(BaaS) Gains Traction
Many startups and enterprises are striving to develop their own blockchain solutions. However, the technical complexities and operational overhead involved in managing or executing blockchain infrastructure doesn’t always make it feasible. Several leading tech giants, and even startups are now offering a viable solution to this problem. That is the Blockchain-as-a-Service model (a cloud-based service).
A BaaS provider handles blockchain-related artifacts and keeps the infrastructure agile and operational. Using this turnkey solution, businesses can readily leverage the power of blockchain without the hassles of its setup and infrastructure.
Most notably, application of BaaS:
- In developing decentralized applications (dApps)
- In supply chain for writing smart contracts
According to ABI Research, BaaS could produce nearly $13 Billion by 2023.
For instance, Companies such as Amazon with AWS, Microsoft with its Azure cloud services and IBM blockchain have already started offering BaaS platforms.
Eventually, the adoption of BaaS will increase in 2019. In fact, the interaction of blockchain and the cloud will also progress steadily throughout the year.
2. Asset’s Tokenization: A Tectonic shift
The world of tokenization is ready to change the asset management game.
According to Forbes, the tokenization of non-liquid assets “is likely to be one of the biggest stories of 2019 and beyond.”
Asset tokenization is the process of using Blockchain to distribute and standardize ownership of real-world assets.
For example, in Real Estate the value of physical asset is valued at $100,000. This asset can be tokenized on a blockchain network with 100,000 tokens. Now, buyer can buy a specific number of tokens to own a certain percentage of ownership on tokenized asset. Say, you can buy 50,000 tokens to own 50% stake in ownership of the asset.
“A swiss based financial technology company is already working on the draft of the blockchain act, enabling the new concept of ownership through security token while reinforcing a comprehensive legal framework for tokenized assets.”
Source: Smart Valor
(Source: Business Wire)
$30M Real Estate Property Tokenized With Blockchain - Forbes
The demand of tokenization using blockchain in real estate is growing. This is because blockchain enables users to transfer real-world assets by re-assigning ownership without the need of an intermediary in transactions. This data eventually gets stored as an immutable record on a secure blockchain network.
Current year could be the year where we may see new regulations put in place to facilitate and standardize tokenization through blockchain.
3. Ricardian Contracts – Smarter Way to Execute Smart Contracts
Smart contracts have always been a point of discussion since the adoption of Ethereum in 2015. They have truly revolutionized the traditional way of transaction in businesses.
However, there is another lesser known type of contract that can be utilized by blockchain ecosystems —known as Ricardian contracts.
Ricardian contracts were first introduced by Ian Grigg in his paper published as Financial Cryptography in 7 Layers, where he defined it as follows:
“Ricardian Contract is a digital contract that deﬁnes the terms and conditions of an interaction, between two or more peers, that is cryptographically signed and veriﬁed. Importantly it is both human and machine readable and digitally signed”.
Ricardian contracts are a powerful means that can help smart contracts to become more superior when used alongside it.
2019 will likely see the potential of Ricardian Contracts to transform blockchain-based contractual agreements into the next generation of smart contracts.
4. Hybrid Blockchain: Interoperability of Two Blockchains
Next in the list of blockchain trends is Hybrid Blockchain. Hybrid Blockchain is an amalgamation of private blockchain and public blockchain. This type of blockchain reaps the benefits of both approaches using the best features and functionality of public and private blockchain together.
Use Case - Logistics Industry
Large logistics companies such as MAERSK, DHL, UPC have many partners, subcontractors, and clients. They have complex and often changing business networks which becomes cumbersome for them to deal with their clients and partners.
Implementing a Hybrid Blockchain, a logistics company would be able to gain the benefits of both public and private blockchain. In this case, the private part of a Hybrid Blockchain solution can be used for transactions among the biggest partners. The public part can be used to deal with subcontractors and small partners (for instance local transport providers.) This enables security, transparency and integrity within the processes.
For instance, the government cannot be completely centralized or decentralized. Hybrid blockchain is an ideal solution to solve this problem. A Hybrid Blockchain configuration enables them to share the data that is set open to view publicly while some are reserved for authorized users.
5. Convergence of Blockchain with IoT and AI – The New Synergy
Last but not the least, blockchain supporting the Internet of Things and Artificial Intelligence aims at delivering a distinct opportunity. The inevitable convergence of blockchain, IoT, and AI can form a new synergy of security, interconnectivity, and autonomy.
The combination of these three technologies will allow organizations to leverage new performance insights to refine business processes.
“Blockchain’s decentralized economic power and microtransactions, combined with the intelligent decision-making ability of AI and the sensory powers of IoT, will create never-before-possible technology constructs for business and society,” - says Christophe Uzureau, VP Analyst at Gartner.
Real World Use Case:
Toyota is currently working to implement a solution that aims at increasing the safety of autonomous vehicles using a blockchain based network. Massive amount of data logged in the blockchain network is transmitted by Sensors deployed on every autonomous vehicle. In case of an accident or unprecedented route re-direction, the real-time data collected from cars on the route could be used to alert oncoming cars so that the drivers could take an alternate route.
With the endless possibilities and adventures surrounding artificial intelligence, Internet of Things and blockchain, the future seems to be exciting. The level of excitement coming from both within the industry and businesses outside is evident.
Be a part of this steady growth trajectory by catching up on the latest blockchain trends. It’s about time you invested in blockchain development services today before your competition!