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Looking to 2018 - Blockchain will continue its rapid growth

The year 2017 marks a huge year for the blockchain, although it did not grow as expected.

Earlier this year, I and others predicted that the blockchain in 2017 will be a year from concept to application, and we have indeed seen many successful examples in this regard.

Ripple has become a 100-member fully paid platform for more than $ 1 billion in capacity and various industries are beginning to build blockchain business networks, such as the Digital Trade Chain Alliance for Financial Transactions.

But overall, I expect to see fewer "should survive" projects than in fact. On the other hand, I do not think this year people predicted the explosive growth in the total market value of cryptocurrencies and the flood of ICO projects.

So what can the blockchain bring to us next year? Although it is clear that there will be risks in predicting the future, I am still very confident of seeing the following scenario be reached next year:

  1. The solution to the blockchain will continue to be a reality, which is easily achievable.
  2. Encrypted currency will continue to grow, and traditional asset managers and technology will enter the market.
  3. As the blockchain begins to change the market structure, the company will focus on the business transformation.
  4. The new ecosystem with smart contract technology will be integrated into the existing industry.
  5. ICOs are more "professional" and become IPO2.0.
  6. The scalability and performance of blockchain will be a key issue with many interesting new ways to emerge.
  7. People will be increasingly aware that the local blockchain ecosystem will become a key factor for local success.

Now we will interpret the above forecasts one by one.

Short-term great opportunity

Although this year is smaller than expected, I believe we will continue to see blockchain solutions being used in the digital commerce, the most influential blockchain.

In financial science and technology, the two most-watched cases are still payments (nearly $ 50-60 billion saved) and financial transactions (about $ 15 billion saved).

We have witnessed the 2017 payment market, and I predict in 2018 that we will see more financial transactions based on blockchain technology. In the area of ​​payments, big banks will have tremendous potential as the big banks start to take action and their total funding will grow further. More and more people will be drawn to the blockchain's real-time trading, lower risk, lower fees and transparency.

The impact of the blockchain is huge, and it gives many industries a lot more good choices from the current situation.

We are both both somewhat surprised and excited about the 2017 performance of cryptocurrency as an investment asset. Indeed, its growth is highly speculative, with its market value soaring from $ 14 billion in December 2016 to $ 450 billion in December this year.

As more traditional assets, including bitcoin futures, the continued addition of virtual currency hedge funds will stimulate greater demand for virtual currency and tokens, the virtual currency's rally will continue.

New business model

As the blockchain continues to change the market structure, companies are increasingly paying attention to changes in their business models.

In a world where intermediaries are isolated, companies will learn to become more open partners on an ecosystem or broader platform. It also determines what kind of business model they need - whether the platform is working, the product at work, the omnichannel strategy, and so on.

These discussions will become more diverse and revolve around the rapid growth of existing services based on new blockchain services - especially when blockchains and artificial intelligence and the Internet of Things are combined to create a new marketplace, The whole industry will form a broader and higher-level structure.

One of the most fortunate things for me in 2017 is seeing some of the blockchain technologies that I've worked with. (See the discussion below)

Deon Digital has partnered with Mercedes-Benz to create a new operating system that can help break the fragmentation in mobile space. Skycell is a good example of combining IoT and blockchain to create drugs that provide payment, invoicing, and insurance Supply Chain; TEND Subverts the Traditional Approach to Asset Management by Creating a Shared Economy for High Value Assets 2.0.

There's one area we need to give special attention in 2018: the fund industry, and some companies like Melinport are using blockchain technology to create a new platform for asset management. I think we can see more similar things in the future, so the fund industry will start to be significantly disrupted and affected next year.

These are related to the management of encrypted assets, but in retrospect we will also see more and more traditional assets will be tokenized, migrated to the blockchain and managed on the chain.

Variant of ICO

Many start-ups in 2017 raised nearly $ 3.5 billion through ICO, so it is clear that 2017 is the year for token issuance.

To me, despite the serious overdone of the ICO, the reason for this is not the increase in the number of ICOs, but rather the reason we saw the beginning of the democratization of venture capital. Although the concept of ICO has been flooded in 2017, more and more people in the traditional industries will enter this area in 2018.

In the next 12 to 18 months, I expect that more experienced professionals in the IPO arena will support tokens and use it as a technical tool such as drafting and pricing of proposals, as well as startups More and more traditional means, such as valuations, will be brought to the industry and the entire ICO industry will become more specialized.

Measurability and ecosystem

One of the most important challenges for the existing blockchain technology now is its scalability and performance. I expect next year we can see more technology will replace the existing blockchain technology to make it easier to measure, faster, and to minimize energy consumption.

IOTA has gained a lot of attention lately and I think it will be next year's most noteworthy one in this trend.

I also think that people will find more and more of the local blockchain ecosystem and that some important facilities and services are located in one area at the same time and become an important success factor in the blockchain project.

This is what we can see in the Swiss "Crypto Valley". As President of Encrypted Valley, I hope readers will understand my prediction or at least be able to focus on the continuing success of the Swiss blockchain ecosystem.

Enrichment Valley brings together a large number of blockchain projects that require financing or opening of stores, including legal, consulting, tax, accounting, smart contract platforms, KYC / AML applications, and marketing.

These are inseparable from the strong policies and support from Switzerland, from the technical development level infrastructure to its high level of talent pool. In my opinion, in the new year and in the coming years, Switzerland's Encrypted Valley Will attract more blockchain companies to join.