Blockchain Predictions For 2018
Due to the abrupt increase of ICOs, Ethereum and the whole cryptosphere also went high in price exponentially last year. In 2017, there were several projects that got hacked because they had bugs in the code of their smart contract, numerous scams also came out, as well as few startups also showed up, which failed to deliver on their roadmaps.
Telegram is a popular social messaging app and is considering to launch a token sale. It is said that this token sale would become one of the biggest ICO token sales.
- The leaked whitepaper of Telegram explains that it seeks to add a crypto micro-payment functionality to its chat platform.
- Also, it is going to present an innovative and new scalable multi-blockchain network under the name “TON” (Telegram Open Network).
- For accomplishing this, the project will try to raise $1.2 billion through an ICO.
- The Telegram’s whitepaper is potential to resolve all the important issues that Bitcoin and Ethereum are facing at this moment including, scalability and interoperability, and present a network that will handle millions of transactions each-second.
- However, the problem is that the company doesn’t tell precisely how it is going to make this work.
- In the 132 pages of text, specifications regarding how TON will overcome challenges related to building a huge and scalable architecture cannot be found anywhere.
- Although developers are not too much overwhelmed, unprofessional investors might find the notable potentials of TON appealing.
Generally, reasonable regulations are going to serve well for the blockchain space in this long run and lastly, startups will halt taking money recklessly – only because they can and will instead concentrate on developing advanced technology.
Decentralized Exchanges and Scalability Issues
- The adoption and implementation of decentralized exchanges haven’t been elevated until now, though it seems like they’ll turn out to be fairly mainstream in 2018.
- With SEC regulations approaching, this probably also has centralized exchanges rattling.
- To find token liquidity somewhere else, people will have to consult DEXs (Decentralized Exchanges).
- It is expected that projects like EtherDelta will become popular this year as people are slowly repelling from Bittrex, Coinbase, etc.
- At the same time, this doesn’t mean that centralized exchanges will be forgotten instantly – they are still world’s more expedient than any other operating or soon-to-be-launched DEX. However, they are probably going to mislay a huge amount of their market share this year.
It’s believed that payment channels including Lightning Network will also become a trend soon.
- This promising technology allows people to open a bidirectional payment channel and transact through it without paying any fee.
- Fees are required but only for opening or closing a channel and appears to be a potential solution to the scalability problem of Bitcoin.
- It can assist other blockchains, as well.
- Projects like Raiden Network already exist since they seek to achieve chain payment channel functionality to Ethereum.
If we talk about Ethereum and the future of crypto – its future switch to ‘proof of stake’ and after it happens, the user base network will perhaps get divided again. Anyone who owns loads of mining hardware might dislike the idea to drop ‘proof of work’ for clear reasons. On the other hand, there are cryptocurrency enthusiasts who think hard forks have to be avoided, in general. According to them, altering the blockchain in such way is contrary to the main principle of blockchain immutability. Consequently, there’s a chance that we might get a third network by the end of this year – on top of Ethereum and Ethereum Classic.
Adoption of Blockchain Technology
- The blockchain technology can reconsider the supply chains industry.
- One of the largest retail corporations in the world, Walmart, is utilizing a decentralized ledger to improve the traceability of the product.
- Nestlé is intensely using blockchain technology to lessen food contamination, as well.
- Microsoft and IBM are enthusiastically spreading private blockchains for individual and exclusive business use cases.
- Last year, 57% of big corporations were either considering or utilizing blockchain technology.
This year, large organizations and big financial institutions including payment providers and pension funds will also embrace the blockchain technology.