After a tough 2018 year, the cryptocurrency industry is expected to recover as a technical assessment by the Massachusetts Institute of Technology (MIT) predicts that blockchains may become mainstream this year. This forecast is different from the report highlighted by the Boston Consulting Group (BCG) and Forrester Research last year.
The Boston Consulting Group said in its report that the potential of the blockchain in the bulk trading industry has been exaggerated. According to the data of the consulting group, the transaction volume on the blockchain is very small. This makes it challenging to estimate how long this technology will become mainstream in the commodity trading arena.
Forrester Research's report predicts that most blockchain projects launched in the US will be suspended by the end of 2017. At the same time, the report points out that companies that have been working to integrate blockchain into their businesses are either shrinking or reducing their ambitions.
In the context of the issues highlighted by these research firms, why does MIT predict that 2019 will be the year of blockchain technology becoming mainstream?
Government supports the cryptocurrency
International Monetary Fund (IMF) President Christine Lagarde (Christine Lagarde) has recognized that government-backed cryptocurrencies can provide better privacy, security, consumer protection, and more people than commercial or private cryptocurrencies. At the same time, governments in some countries have taken a step forward in developing their own cryptocurrency. Venezuela was one of the first countries to launch an oil-based digital currency. Although Venezuela seems to be on the decline, central banks in 15 other countries seem to be serious about developing their own cryptocurrencies. Although there may not be a release this year, we can expect that the issue will continue this year as companies adopt new payment methods.
Financial institutions entry
Financial institutions began to show interest in cryptocurrencies. According to editor-in-chief Michael Hull. Today, this interest stems from the potential that these institutions see in the blockchain.
The financial industry ranks first in the industry leading the blockchain, he said. It has the potential to provide alternative payment and settlement methods that are not only faster and cheaper. But most importantly, its transparency and invariance. And security features make it an ideal technology for the financial industry.
Last year, Fidelity invested in a new platform called Fidelity Digital Assets to provide customers with digital asset solutions. Through this platform, Fidelity Investments will invest in the cryptocurrency market while supporting institutional investors. In addition, the New York Stock Exchange owner Intercontinental Exchange (ICE) announced plans to launch a digital asset exchange this year. ICE is one of the most influential players on Wall Street.
In the corporate world, Wal-Mart is ahead. The retail giant has been experimenting on a private blockchain for years. In September this year, the retail store will begin to use the blockchain to track food supplies, especially green leafy vegetables.
A true smart contract use case
smart contract helps the parties reach an agreement. As their use cases become more realistic, these types of contracts are set to eliminate mediation. Companies like Chainlink are already experimenting with smart contracts. Chainlink is a member of an academic research team that is creating a decentralized oracle network that uses cryptography to add data to smart contracts on the blockchain. One of the true smart contracts that the company will launch this year is legal technology. Chainlink has partnered with OpenLaw to develop a simple legal agreement based on smart contracts.