In a bear market environment in which crypto prices are crumbling, investors often struggle to keep cool from all their portfolio headaches and midnight market analysis. One question they all ask themselves is, will the market pick up and will blockchain hang on?
We all remember when just a year ago, the idea that Bitcoin and cryptocurrencies were going to change the world was becoming the consensus opinion. Today, not so much.
The digital currency now trades below $5,000. It’s 77% off its high near $20,000 in January. Other cryptos are collapsing, too.
And even though, many people argue that cryptocurrencies are the revolution, not to mention, the technology. How can you blame them? They have only started hearing about blockchain and crypto during the bitcoin boom last year.
Blockchain technology has the potential to cause a massive paradigm shift, that decentralizes systems and process for business, organizations, economies and governments. Blockchain technology simply engenders trust in inherently “trustless” interactions and negates the need to have a centralized intermediary to attest to events.
If you dare to take a look past crypto, the technology behind blockchain remains as promising and potentially disruptive as ever. From one of the leading blockchain developer, IDG Connect, they agree that there is a tremendous enthusiasm for blockchain among their clients, including many in the Fortune 500.
“Some are already piloting the technology and learning how a decentralized app with an immutable blockchain can transform their business processes. So, despite the hype around cryptocurrencies waning, the business interest in blockchain technology is increasing. “
What Can We Actually Expect From Blockchain in 2019?
There can be few scenarios. A major grocer could use its blockchain pilot to quickly and definitively identify the specific source of a global food contamination. One candidate: Walmart who is already using its influence to drive blockchain adoption with some suppliers to track the path of food in its supply chain.
Blockchain can efficiently track the journey of produce all along the supply chain, from farm to table, through the decentralized ledger technology. Blockchain could have spared a lot of sickness from the recent E. coli outbreak in romaine lettuce. Not to mention the expense of the FDA’s broad recommendation to destroy all romaine lettuce on the market. The agency couldn’t identify the specific source and extent of the problem.
In 2019, blockchain might help avert a public health crisis. And the buzz about the events — along with the realization of the potential cost savings — could spur businesses to accelerate adoption of blockchain across a wide range of industries.
In today’s business world, many companies interact with each other in some capacity necessitating some form of documentation. Distributed Ledger Technology (DLT) on the blockchain can be used to document transactions in an open, distributed, and real-time database, helping reduce delays, increase transparency, and reduce human errors. Within the complex world of supply chains, for example, companies are always looking at ways to reduce the time and costs of moving products. DLT can cut out the need for multiple and inefficient record keeping methods and practices to ensure everyone on the supply chain has the same information in real-time, cutting out unnecessary waste.
One of the biggest criticisms of blockchain is its environmental credentials. Bitcoin and many other cryptocurrencies use the “proof-of-work” consensus mechanism to secure its blockchain, and that requires a lot of energy. To lower energy costs (and environmental effects), developers are building other consensus mechanisms. Chief among these alternative consensus mechanisms is “proof-of-stake.” Proof-of-stake requires users to wager that their version of the blockchain is correct and could eliminate the need for power-hungry mining rigs and make it scalable for business use.
Solving these issues will go a long way in boosting the real-life use of blockchain in business. Another piece of the puzzle that will accelerate adoption is legislation as this gives companies the ‘green light’ to move forward with developing tools within blockchain with the full support of the government in their operating market.