Eric Piscini, head of Deloitte Consulting, is the global leader in Deloitte's global financial services blockchain consulting and leads the global blockchain and password money team.
With the development of bitcoin technology in the 10th year of the Bitcoin market, let us celebrate its positive significance.
From the tens of thousands of emerging startups to the blockchain labs that emerged in commercial and federal agencies, to the alliances that want to address the industry's biggest challenges, the entire world has great interest in blockchain.
It can even be said that 2017 witnessed the democratization of cryptocurrency.
The democratization of a particular technology can occur in many ways, from the number of people, products, and solutions using the technology, to the value of its business, or the degree of disruption it activates. Contrary to previous wave of technology, like open source, the core of blockchain technology is to provide power for people and organizations. Therefore, the democratization of the blockchain is also the core of its success.
With children accepting Bitcoin at lemonade stalls, teens invest in Ethereum on a crypto-transaction platform. There is no doubt that cryptocurrencies have helped democratize the blockchain. Ask anyone involved in the blockchain without having to participate in bitcoin verification. To some extent, blockchains have been democratized through cryptocurrencies – but the real democratization of the blockchain is imminent.
With the core of democratization, here are some things I expect to see in the coming year.
For various reasons, this is a crucial year for all aspects of the blockchain.
1. Killer application
2018 is likely to be a year of blockchain killer customer applications.
Although these implicit passwords are cute, they also show some limitations of the technology platform; this may encourage the industry to develop a more stable and scalable blockchain. As the foundation matures, we will see major advances in the use of blockchain solutions for consumers. Whether it is personal power grid management, digital identity, games or credit scores, we may use blockchain applications in 2018 without knowing that it is supported by blockchain technology.
2. Major technological development
The progress of the next few months will make the use of blockchain platforms easier than ever before. This will happen to mainstream encrypted digital players such as Taifang and Corda.
This will address one of the key challenges we face today – scarcity of talent, especially in the area of developers and architects. When it is easier to provide and develop applications in blockchain technology, innovation will be released and more solutions will be created, which will help promote the launch of more experimentally successful platforms.
3. Government and regulators will promote the adoption of this technology
After researching and accelerating the development of technology, these companies are participating in and leading the efforts of the blockchain.
They now understand the value of blockchains because they themselves are supporters. We will see the large-scale use of blockchains led by various governments, first of all possibly developing economies and small countries, in which the incumbent’s influence is low. Financial inclusion, digital identity, regulatory reporting, and payments will be the main areas of blockchain improvement in 2018.
4. Companies and non-profit organizations will become major players
I believe that these organizations will become the main engines for translating these commitments into true business viability solutions and play an important role in democratizing the blockchain. Most importantly, they will have to accept the fact that their long-term role in our economy may be completely different from today. So far, we have seen both sides of the coin, all unconscious.
Those who take a defensive posture, such as a notary, will be on the way to disappear. On the other hand, those companies that are attacking, such as banks, insurance companies and other financial institutions, will take active actions and will help build the next-generation business platform for the blockchain.
The biggest question is: Will they have enough flexibility to compete with startups? Will they be protected by regulations? Will their investments produce returns so far?
5. The job market will notice
When it comes to talent, this is the first thing I think of when I woke up every morning. The job market will also be affected. The blockchain will provide new production and life for many people. The decentralization work has begun and I believe that the blockchain will drive its growth. Imagine a world where each of us can pay for time, skills, and experience on demand and receive micropayments from a decentralized platform.
The work has been democratized many times, but it is likely to be the last stage.
Despite this, the democratization of the blockchain may have a negative side. If you think that the blockchain is a non-human trustee, then the autonomous organization that runs on the blockchain - as we saw in DAO - is no longer a science fiction novel. Democratization of technology often requires strong ethical behavior and sometimes requires a regulatory framework. We cannot exaggerate these aspects in the competition of introducing blockchain into the world.
6. There will be surprises
No, I didn't forget the password currency and other tokens.
They have achieved democratization in the financial market, with many exchanges and financial instruments. Does it open up a new wave for all those investing in new asset classes, it will set off a blaze, will it enhance existing businesses, or will it create new decentralized models? All of the above, This is why 2018 will be the most exciting year for blockchain so far.
In 2018, the democratization of blockchain will become our center because I believe it will bring unprecedented changes in the next 10 years.