Venture capital firms have invested over $1 billion in blockchain-based firms within the last five years, according to the Harvard Business Review. By all indications, this investment may begin to pay off soon, as the coming year is expected to bring blockchain mainstream popularity and a staggering $2.3 billion in spending to the market for blockchain solutions.
To get a clearer picture of what the future of blockchain may look like, check out the following five trends that experts predict they will see surrounding this innovative technology in 2018.
- The U.S. government will further embrace blockchain.
Government entities have already begun to use blockchain in various capacities over the last few years, including the states of Delaware, Texas, New York, and Illinois. Blockchain-based programs within the Department of Homeland Security, Health and Human Services Department, and the General Service Administration are also already in place. We can also expect to see more publicly advertised uses of the technology this year from the FDA, the U.S. Department of Defense Transportation Command, and even the U.S. Army Medical Research and Materiel Command.
- The number of ICOs will rise.
In 2017, there was plenty of conversation surrounding initial coin offerings (ICOs) and the need for regulations, prompting a public statement from SEC chairman Jay Clayton on the U.S. Securities and Exchange Commission website in mid-December. In spite of the potential risks associated with unregulated ICOs, industry experts expect 2018 to be another bull year for the trend, potentially even overtaking this year’s levels of venture capital funding. Expect this growth to attract more experienced investors who will bring a higher degree of professionalism, greater accountability, and more stringent due diligence to the process, making ICOs more like the traditional fundraising methods that they are poised to usurp.
- AI, IoT, and blockchain will move toward integration.
The Internet of Things, artificial intelligence, and blockchain are indisputably the three current megatrends of technology, and 2018 may be the year that they take the first steps toward convergence. Blockchain stands to further the development of both, as it can provide IoT with advanced protection by securing points of failure and may establish an avenue for affordable access to big data for AI companies looking to further enhance machine learning processes.
- The Asia-Pacific region will push hardest for blockchain technology.
Although North America and Europe, respectively, represent the first and second largest investments in the global blockchain marketplace, the Asia-Pacific region has the greatest potential for aggressive growth in the coming year and beyond. Countries such as South Korea and Japan already have banking sectors that are embracing blockchain in order to reduce costs and improve efficiency. Their media, retail, and insurance industries will also contribute to increasing demand for blockchain-based technologies in this area of the globe.
- The overall blockchain economy will witness an upward growth trend.
While excitement about digital currency helped blockchain to attain its status as one of the most profitable investment trends of 2017, the coming year will secure its position as an independent technology with lucrative possibilities. Although cryptocurrencies are likely to experience a surge in growth, as well, we should anticipate that blockchain will drive disruption across industries over the next year and garner a high degree of interest and investment within the tech sector outside of its use as a platform for cryptocurrencies.
Mikhail Golomb 