What are the 3 Key Trends and Predictions for Blockchain in H2 2019?By Aug 02, 2019 4 Min Read
What should we expect for crypto and blockchain in H2 2019? We gathered blockchain professionals, lawyers and tech experts in Bitwork to review and predict the future of blockchain in 2019. We have been delighted to have invited our guest speakers for this event including Chi Man Ngan from AIA, Margaret Yang from Singularity Financial, Leonhard Weese from the Bitcoin Association of Hong Kong, and Kristi Swartz from Swartz, Binnersley & Associates. We would also like to thank Bitwork, 9up.io and Molecular hub for their amazing support to our event.
With a variety of products and technology emerging from the crypto and blockchain space, it is often confusing to understand what is going on. We have put together this event to be able to tackle this issue, to explain the key shifts in the crypto world.
3 Key Trends and Predictions for Crypto
In the first keynote, Matthew Lam from Blockchain.News presented 3 key trends and prediction in crypto. The first trend is the initial exchange offerings (IEO). Matthew provided a simple explanation of the IEO landscape and gathered the leader’s opinion on why every crypto exchange is rushing to launch IEOs.
Matthew also noted another exciting trend in H1 2019: fierce competition among Blockchain-as-a-service vendors. He then compared the blockchain-as-a-service provided by Amazon Web Service and Microsoft Azure. He predicted that Consensus-as-a-service would be the next critical technological advancement of blockchain, as IBM started exploring this field with the whitepaper co-authored with Hedera Hashgraph.
Matthew identified the era of “digital enterprise coins” as the crucial final trend. In H1 2019, JP Morgan and Facebook revealed plans to launch JPM Coin and Libra Coin, respectively. While the future of Libra is uncertain due to regulatory scrutiny, Matthew believes that other global enterprises will be launching their own coins in future and the era of “denationalization of money” can become a reality.
What can we learn from Libra?
“The Libra Blockchain is a decentralized, programmable database designed to support a low-volatility cryptocurrency that will have the ability to serve as an efficient medium of exchange for billions of people around the world.” The emergence of the Libra Association is paving the way to a regulatory revolution and understanding from the authorities. Libra also serves as an indication of enterprise adoption and step towards embracing blockchain and cryptocurrencies.
Kristi analyzed Libra from a Hong Kong regulatory perspective. As stated by David Marcus during the Senate Committee Hearing held on 16 July 2019, Libra is a payment instrument. Kristi believed that such classification of Libra could be controversial and if Libra is subject to Hong Kong regulations, it can be regulated by Hong Kong Monetary Authority, Securities & Futures Commission, Customs & Excise Department and Companies Registry.
As mentioned above, Libra has been making its way through the regulatory authorities, and the outcome of its launching will clear up regulatory speculations in the market. Currently, regulations are still being structured and still needs time to catch up with the technology. Based on current developments, it is safe to say that there will be more regulation/ licensing soon with AML and KYC being a key focus. Data privacy will also become a key integration mechanism. Cryptocurrencies are here to stay and will further integrate into the current payment systems and are predicted that it will become mainstream in the next five to eight years.
Blockchain in Insurance?
Chi Man Ngan, the Blockchain Lead of AIA Group, presented the state of blockchain adoption among enterprises. He pointed out that there are numerous proofs-of-concept (POC) in the blockchain space, yet the vast majority resulted in failures. Chi Man highlighted some blockchain use cases in Bancassurance, parametric insurance and trade financing.
To DeFi or not to DeFi
Margaret Yang, Editor-in-chief of Singularity Financial, highlighted some interesting stats on the three applications of decentralized finance (DeFi): stablecoins, lending and decentralized exchanges. As of 30 June 2019, the market capitalization of decentralized finance has reached USD 1.49 bn.
It is not surprising that USDT remains the leader in stablecoins with an 80.6% market share. However, it is noteworthy that USDC accounts for 41.4% in the emerging stablecoins market, which outperforms peers like TUSD and PAX.
While MakerDAO is one of the hottest blockchain community in H1 2019, Maker only ranked 2nd (26%) in the decentralized lending market. The lending market is dominated by dYdX V2 of 43%. Eth2dai (27%) and IDEX (26%) are the major players of decentralized exchanges in H1 2019, followed by Kyper (15%) and Uniswap (14%).
Predictions and forecasts on the crypto market from these panellists have given significant insight into what to expect in the rest of 2019. As we anticipate the updates from Libra and its associated regulations, it is clear that crypto and blockchain has still a long way to go and that it is here to stay.
The event ended with an engaging panel discussion with light refreshments. Stay tuned for our next event!