In 2019, blockchain technology will move more into the mainstream. More business applications, less hype, tokenization of assets and improved legislation will create the basis for wider technological adoption in the years to come.
Apart from the cryptocurrency slump, 2018 was an exciting year for blockchain enthusiasts. We have seen many new applications and business use cases.
But besides the innovations we’ve seen in 2018, there was also a lot that we haven’t seen, because it happened behind the curtains. Hence, 2019 could be the year of some groundbreaking releases.
More blockchain-based enterprise platforms
In the eye of the public, blockchain is mostly being associated with cryptocurrencies.
However, blockchain has great potential for innovating enterprise applications. In 2018, we have seen a fair share of such applications being released. We will see more in 2019.
According to a Deloitte study, which surveyed executives across multiple industries, 34% of surveyed companies have a blockchain-based system in production, and another 41% plan the release of such an application in 2019.
We will also see a shift in terminology from “blockchain” to DLT (Distributed Ledger Technology), at least in the corporate space. The term is more neutral and creates a greater distance to cryptocurrencies.
Less technology hype, more focus on applications
“Blockchain is overhyped” – that has been the conclusion of more and more people towards the end of 2018.
And that’s partly correct. Some applications of the technology are overhyped, others are not. Blockchain is certainly no magic solution for every problem.
Thus, in 2019, we will see a greater focus on the application of blockchain technology, and less focus on the technology itself. After all, it’s not that important which technology applications are based on. Only results matter.
Blockchain can deliver results, but sometimes other technologies are better suited to solve a problem. Hence, the goal is not to find places where blockchain can fit, but to find places where it is the best fit. The blockchain hype is already fading away, so 2019 will be more fact-based.
Tokenization of assets will become a megatrend over the next years
Security tokens enable fractionalized ownership of illiquid assets and will allow institutions to offer a unique portfolio positioning.
In 2019, a primary and a secondary market for security tokens will develop. We will see more STOs and less ICOs. This trend has already started in 2018. In 2019, we will be watching the birth of a quadrillion dollar security token market.
“I think that the main trend will be securities tokens. The combination of the power of a distributed ledger with more standardized securities will open lots of doors in capital creation,” says Bruce Fenton from Atlantic Financial.
Governments will introduce legislations
Regulators are catching up. In 2019, we will see more blockchain regulations.
Liechtenstein will introduce the Blockchain Act in early 2019. This will be the first comprehensive legislation for the blockchain industry, aiming at regulating everything from TGEs to crypto trading.
Malta will issue licenses for blockchain businesses. Both, France and the UK have sent positive signals to the blockchain industry during the last G20 summit.
Greater legal security will create ecosystems in which blockchain companies can grow. Frank Wagner, CEO of INVAO, says, “I believe that in 2019 we will begin to witness more acceptance of blockchain based financial offerings. I estimate that more and more strong projects will position themselves as a ‘foot-in-the-door’ option for traditional investors, making investing easier than ever before, but in an above board and legally compliant manner.”
2019 will be exciting. We will keep reporting about all developments, trends and news in the blockchain industry, especially in Liechtenstein.
But for now, we wish you a happy new year! See you in 2019!