The evolution of blockchain based projects in 2018

What to expect from the future?

The concept has taken a while to catch on but cryptocurrencies have commenced a period of extraordinary growth. Bitcoin certainly grabbed the headlines in 2017 but there has also been a lot more going on than just that. This has all been built around the blockchain construct. A blockchain is a distributed ledger made up of blocks associated with transactions. The ledger details are encrypted making it very protected and private. It also ensures that the record is not able to be tampered with and prevents the copying of the information that is stored on the blockchain, which could be the details of your ownership of cryptocurrency.

The New Financial World

It seems that many people in the financial markets have got very excited about what is possible using new concepts in this sector. It shows signs of being more flexible and yet still offering levels of protection. It also means that the speed of transactions has the potential to dramatically increase and the fees incurred in those transactions to dramatically decrease. The more traditional financial sector must be already trying to find ways to take advantage of this technology as they would see there being potential for the fees which play a significant part in their current revenue model being lost in the coming years.

Funding Models

The new funding model has certainly been able to capture the innovative imaginations of many different groups. Some of them want to use it on a significant scale and others are happy to just go with a much smaller boost to their funding. They would then use the money for the development of not only practical developments but also conceptual ones as well. There have been new currencies developed with one of the most stable being the Ethereum blockchain offering Ether. There is a wide range of offerings currently available taking advantage of Ethereum as the basis for enabling and recording the funding arrangements.

There are new altcoins that have been developed on the basis that they will have significant support, ensuring that their investors will be part of a big enough investment for it to gain sufficient investment weight to develop and perform.

The idea of mining has significant relevance in the use of data. New financial constructs and models are being created to take advantage of access to data that will be intended to identify trends and anticipate where investments should be made to achieve maximum returns. And those who contribute to this could be remunerated in cryptocurrencies.

Initial Coin Offerings

Venture capital has found a new playground. New risks and exposures are being explored. Some of the ideas that are being developed appear to be ridiculous but if they get funded then they will be investigated and their future relevance assessed. Initial Coin Offerings (ICOs) are able to raise funds quickly. There is little regulation associated with this side of the business which does leave the door open for the unscrupulous, but if investors do sufficient research they will be able to protect themselves from the scammers. However, there will also be a significant number of ideas that never really get very far and others where they do not get going enough to make money and investors will be left out of pocket.

There is a new model where the cryptocurrencies have an active job to perform in new protocols and on new platforms. The tokens that are sold also have incentives tied to them as part of the basic functions of the system. These create a decentralized, blockchain-based web in which interactions with businesses or individuals attached to the web are powered by the tokens or currency. This provides an opportunity for developers to take advantage of the technology through having an active funding model that has the potential to generate funds through ongoing activity. This information is then able to be used for efficiently developing new activities.

Is it digital money?

Cryptocurrencies have been presented as a form of digital money and they have been given a real-world equivalence. But they are not really effective for small quick shopping activity at the time for each transaction is too long. And if you lose your key for access to the blockchain you have lost your money. But if we are to move away from the idea of cryptocurrencies as digital cash we are talking about a big shift in thinking. Currently, your stakes are held in electronic wallets and the providers of those services will also play an important role in how we move forward. There are many that are less reliable and appear to operate on the technology skins of their teeth. This is an area where over the next twelve months there is likely to be some pain and some progress.

There is a lot of opportunity in cryptocurrencies but there is also likely to be some painful lessons learned along the way. The concept appears to offer freedom, with the financial world being opened up like never before. It will be interesting to see just how successful that is.