Now we can clearly see what the next year is going to be like. It’s gonna be a great demonstration of everything that matured blockchain technologies have achieved so far. Let’s start slowly.
Scaling for everyone
Another solution is the second layer, Plasma. Currently, the most viable project, working on Plasma, is OmiseGo, which is pretty close to launching it on the mainnet. The project went through various stages, from Pre-Alpha to Beta, undergoing code audits from Callisto, Quantstamp and Chainternals. Now almost everything is working, the integration with Ethereum is complete, and the white label wallet is already done. There are many large companies that are planning to use OmiseGo framework – Shinhan, Nomura, Burger King, blockchain startups Hoard, Cred and Brave. Plasma technology will allow anybody use blockchain network, secured by Ethereum blockchain, with almost no costs, with throughput of thousands of transactions per second. A true scaling for Ethereum, that will bring the adoption to the network.
Another scaling project, this time for Bitcoin, is Lightning Network. In 2020, we’ll see an increased activity in the network, and the overall number of applications, using it, is also likely to increase.
DeFi is a new paradigm, alternative to the existing financial banking system. It includes many projects, such as lending platforms, platforms for security tokens issuance, and decentralized banks.
Security token issuance is the specialization of Polymath. They allow any company to register and issue special ST20 tokens on Polymesh blockchain. It’s an alternative to all existing ways of issuing and storing stocks, and in the future, the amount of tokenized assets will continue to grow, as it’s more cheap and almost absolutely secure. Such exchanges as Malta Stock Exchange already look at tokenization with interest.
Stablecoins are just another part of DeFi trend, but they are very important, so we’ll make them a separate section. Tether is still the king, but many other stablecoins threaten its position. TrueUSD, HUSD, DAI, USDC and such projects as Libra get more recognition, being more transparent than their USDT predecessor. Stablecoins serve as a bridge between cryptocurrencies and fiat currencies, and their role is very important in a global adoption – as not many people can handle the volatility of cryptocurrencies.
Private enterprise blockchains
We already see such companies as Walmart and Carrefour using blockchain in their supply process. In the year 2020 we’ll see the growing demand for similar solutions. IBM is one of the leaders in this sphere with its Hyperledger solution. According to its estimates, it has already integrated Hyperledger into the business processes of more than 1,000 companies. Private blockchains are a more convenient form of the database for any large commercial company, as they combine all benefits of blockchain technology, but don’t require to share all sensitive commercial information with everybody, instead giving the option to give permissions and choose who’s able to see it.
Overall, the year 2020 will be more interesting and less depressing than 2019. It’s possible that the bear trend on the crypto market will end, igniting the interest of the large audience again. That will bring more adoption to the blockchain technology, which is now a lot more mature than it was in 2016-2017. DeFi, private blockchains, stablecoins, and scaling – those will be the main topics of the next year. If the global crisis won’t crash all market, the next year is going to be exciting.
The author is not associated with any of the projects mentioned.