Also, as mentioned earlier, the technology does not yet have the functional scope, flexibility, performance, efficiency, and maturity. Once it matures, the problems in supply chains are real enough and important enough that solutions will eventually be built, and blockchain will play a critical role in these future solutions.
Blockchain technology changes the nature of this equation. It dramatically reduces the costs of transactions and information flows. Where there were friction and impedance, these levels are lowered. Doing so erodes the traditional rationale for a firm, especially a trillion-dollar firm. Large firms exist, in part, because there is a huge schism between processes that occur inside the walls versus those that cross to the outside. Blockchain technologies change the equation and favor frictionless flows of tokens and other digital assets.
“Say this year you planted crops. The harvest of this crop is related to the amount of rainfall. I know how much I invest in the planting this year? But the amount of rainfall, I have no idea,” Lin explained.
This may become the start of a key trend expected for 2018 — blockchain technology being incorporated into the growing network of IoT applications. IoT devices will increasingly converge with machine learning, artificial intelligence, fog computing, and blockchain technologies. This will help companies move from IoT initiatives that merely produce incremental gains, to those that create entirely new business models and revenue streams. These may create new kind of marketplaces where industry silos come down in favor of broad, horizontal structures. This will allow companies to obtain greater value from their IoT investments and drive broader adoption.
In the area of payments and accounting, bitcoin is particularly well-suited to ending accounting fraud. All bitcoin transactions can be traced and easily grouped together in one accounting system. Bitcoin can also facilitate tasks such as declaring VAT (which would be done automatically) and might enable tax authorities to directly verify the accuracy of corporate financial statements. However, this implies a paradigm where all payments are made in bitcoin, which will probably never happen. Currently, bitcoin is a supplemental currency in addition to commonly used legal currencies like the euro, the dollar, and the pound. In the future, it is likely that alternative cryptocurrencies, such as Monero, Zcash or Bitcoin “v2”, will reinforce the privacy of data to keep information about financial transactions using blockchain from becoming publicly accessible: in sum, they will combine the benefits of blockchain security with greater privacy surrounding the data it contains.
Second, blockchain technology reduces corruption by creating transparency of official records. Whether you are a farmer in rural Latin America or a house owner in Russia, you will no longer be driven out of your land by a corrupt official tampering with the land registry. All assets, including land, will be recorded on a transparent, tamper-free distributed ledger open for the public to see.
There will be hacks—in exchanges, wallets, and applications—but overall blockchain and crypto robustness will grow. Call them “resilience technologies.” They have an anti-fragility model, increasing capability and robustness as a convex response to attacks, shocks, stressors, or failures. The more cryptocurrencies are attacked, the stronger they become. China bans ICOs and hints at hurting bitcoin exchanges, and the value of bitcoin goes up. The ethereum DAO gets attacked, and ethereum takes hundreds of steps to make itself more robust and secure. It’s not Whack-a-mole, its Block-a-mole!
Once all the above mentioned trailblazing innovations are finalized and ready, and more countries follow pioneers in terms of DLT regulation such as Malta or Switzerland, institutional money could start pouring in. This could raise the price of Bitcoin and decrease its volatility.
Bitcoin Headed For $100,000 Or $100? CEOs, Big Investors And …. (1970). Retrieved on October 19, 2018, from https://cointelegraph.com/news/bitcoin-headed-for-100000-or-100-ceos-big-investors-and-harvard-economist-predictions.
Don Tapscott: Ten 2018 predictions from the co. (1970). Retrieved on October 19, 2018, from https://qz.com/1171977/ten-2018-predictions-from-the-founder-of-the-blockchain-research-institute/.
Interview with Bodhi network: How a blockchain prediction market …. (1970). Retrieved on October 19, 2018, from https://hackernoon.com/interview-with-bodhi-network-how-a-blockchain-prediction-market-can-help-farmers-hedge-risks-and-4ecd667d567e.
The Blockchain Predictions | AXA. (1970). Retrieved on October 19, 2018, from https://www.axa.com/en/spotlight/story/the-blockchain-predictions.
The Future of Blockchain Technology: Top Five Predictions for 2030.. (1970). Retrieved on October 19, 2018, from https://medium.com/the-future-of-blockchain-technology-top-five/the-future-of-blockchain-technology-top-five-predictions-for-2030-67df1d7c2391.
Finextra. (1970). Blockchain: Predictions for 2018. Retrieved on October 19, 2018, from https://www.finextra.com/blogposting/14876/blockchain-predictions-for-2018.