Blockchain Will Flourish In 2019 – Reuters Report

Reuters has proclaimed that this year will unleash the potential of technology to record and share data instantly and safely.

After all the hype, blockchain is expected to make a breakthrough in 2019, according to the news service. Banks and companies are gradually applying versions of the distributed accounting technology associated with bitcoin to tasks like liquidation. However, the demonstration of blockchain’s utility will tell you little about the value of cryptocurrencies themselves.

The potential of technology to record and share data instantly and safely has captured the imagination of the corporate and financial sector, as well as anti-establishment libertarians. The libertarians dream of money that is free from the reach of banks or governments, while the banks hope to replace obsolete technology, increase efficiency. and reduce costs.

However, a decade after Satoshi Nakamoto left the basics of blockchain, no killer app has emerged.

That is going to change. Banks have a lot of money to develop new projects. So far, these efforts have demonstrated the effectiveness of blockchain for uses such as securities settlement or unique transactions, such as the $ 110 million bond issued by the World Bank through a general ledger distributed in August. In October, Depository Trust & Clearing Corp, the largest processor of securities operations in the United States, said tests showed that blockchain technology could handle the daily maximum volume of the US stock market of more than 100 million transactions.

At the beginning of 2019, Luxembourg banks are expected to start using software from the Cambridge Blockchain startup to manage compliance with their clients’ knowledge standards. Digital Asset Holdings, the company until recently managed by the former head of JPMorgan in derivatives, Blythe Masters, is preparing to test its blockchain technology on the Australian Stock Exchange, with the aim of replacing its clearing and settlement systems by 2021. More projects of this type are in process.

The bloom is off initial coin offerings, which raised about $ 20 billion dollars in two years. That has become a major setback, along with the collapse of cryptocurrency values and the ramping up of watchdog activities. The value of bitcoin has plummeted from a high of almost $ 20,000 at the end of 2017 to less than $ 4,000 a year later: the original virtual currency and its imitators can never be converted digitally into digital gold. But blockchain applications that people can put to good use are a beneficial by-product.

This story was originally published in Spanish at Cripto247

Source: Read Full Article