What Does the Crypto Crash Mean for Blockchain in 2019?

Blockchain Changed the Rules, Messily

Implications for Blockchain in 2019

  1. Blockchain technology (DLT) must improve. If we compare the ambition of blockchain to its current iterations, it’s clear that we are far from a point of maturity — far even from a point of “good enough” for many applications. Transaction rates on decentralized public networks are low. The current smart contract development paradigm is fragile and unwieldy. There are some technology bright spots and ways to work around these limitations, but they remain true limitations to the technology’s potential. We are still at the rapid evolutionary phase — not the maturity point of the internet in the early 90s. Better DLT is on the horizon.
  2. Software stacks need to be complete. The ecosystem is just starting to awaken to the fact that businesses will not build directly on blockchain and smart contracts. As with every previous breakthrough technology, there must be mature layers of middleware to make a complex technology accessible to businesses, governments, and other organizations that want the benefits of the tech, but not highly specialized developers and long risky custom developments. (Solving this problem is He3Labs’ mission in 2019 with our Threshold middleware solution.)
  3. Businesses need to begin truly building and delivering using the above. With better DLT tech, more complete software stacks, and a more vibrant and proven tokenized funding ecosystem, companies can finally get down to business. Simply announcing blockchain trials, research projects, or partnerships will no longer suffice. DLT can finally start providing true, tangible, transformative benefits in the real world.
  4. Tokenized funding needs to become compliant. The hunger and value of more democratized funding has been proven by ICOs, but it can’t be at the expense of putting the public at risk. STOs offer the potential to thread the needle, leveraging blockchain’s benefits to issue and regulate securities more efficiently and correctly than has been possible before, while safely offering greater flexibility for companies and investors. The STO ecosystem is currently embryonic at best however. Consider this a blockchain application itself that needs the same 4-step process as any other.

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Matthew Hine

Matthew Hine

Systems Architect • Technology Bridge-Builder