5 keys that can drive Blockchain in 2018

The potential of blockchain technology to cause widespread change has been predicted since 2011 and the emergence of Bitcoin. But it was this year 2017 when the concept really started to get people's attention.

Perhaps driven by the meteoric rise in the price of Bitcoin, the first tangible example of a blockchain technology, the hype grew around the encrypted and distributed accounting books in the financial sector.

Financial services startups focused on Blockchain raised US $ 240 million in risk funds during the first half of the year. However, its potential began to be recognized in other sectors and industries.

2018 is likely to see a continuation of this trend of innovation and disruption. These are the five key ways in which this is likely to happen.

More use outside of finance

While the implications for the financial sector may seem more obvious, any industry or organization in which it is necessary to register and monitor transactions could benefit. In health care, IDC Health Insights predicts that 20% of organizations will have moved beyond pilot projects and will have implemented blockchain by 2020, so 2018 should see significant progress in that direction.

In recruitment and human resources, blockchain curriculums have been developed that will streamline the selection process by verifying candidates' qualifications and relevant experience.

Legal work that involves monitoring the transfer of property, for example, intellectual property or real estate, will also be made more efficient through the implementation of distributed accounting books. Next year we should expect to see breakthroughs from innovators in the legal field, making this a reality.

Meanwhile, in manufacturing and industry, the Blockchain Research Institute, whose founders include IBM, PepsiCo and FedEx, says they expect Blockchain to become the "second generation" of the digital revolution after the development of the Internet. He has highlighted the work of electronics manufacturer Foxconn to use blockchain to track transactions in its supply chain.

Blockchain meets the Internet of things

Although this sounds like a buzzword, it is seriously reflecting on how these technologies could be made to work together to improve business processes and everyday life.

Security is one of the reasons why they fit perfectly: the encrypted nature and without the need of a third party for blockchain trust makes it a viable option when it comes to keeping the growing number of connected devices in our homes and offices secure.

The research predicts that the blockchain computing power that is used to "mine" Bitcoin could be used to safeguard our smart homes from a new generation of cybercriminals seeking to enter and steal our data.

Another proposed use is that cryptocurrencies built in blockchains would be ideal for automatic micro transactions made between machines. In addition to recording the activity of the machine in the accounting book for analytical and record-keeping purposes, the machines could effectively "pay" each other when the intelligent machines operated by an organization interact and transact with those of others.

It is likely to be more advanced, but we are likely to see research and developments in this area in 2018.

Smart contracts

The " smart contracts " are another possibility caused by blockchain: the idea is that the contracts are executed automatically when the conditions are fulfilled, that is to say, payments or shipments will be made, or anything else in the commercial relations that is normally defined by a contract.

Blockchain makes smart contracts possible due to its consensus nature. Once the agreed conditions are met, the contract is completed. This could mean paying bonuses when targets are reached, or sending an order once the payment has reached your account.

AIG insurers are testing a blockchain intelligent contract system to oversee the creation of complex insurance policies that require international cooperation, and we should expect more to follow their steps next year.

Cryptocurrencies sanctioned by the state?

Putin was the first, with the recent announcement of "CryptoRublo", but it was inevitable that politicians at some point began to consider the advantages of coins derived from block chains.

In the wake of Bitcoin, it has often seemed that national states have lacked enthusiasm for this particular application, and probably with a good cause.

After all, Bitcoin was thought of as a way to create a tradable currency that governments could not manipulate. Some like China have been downright hostile, refusing to allow exchanges to operate on their borders and issuing warnings about the high risk of investing in cryptocurrencies.

2018, however, could be the year in which governments finally get on the bandwagon, as its potential to create efficiencies in financial and public services becomes more evident.

A lot of blockchain initiatives will fail

Blockchain undoubtedly has the potential to be revolutionary. But, like anything revolutionary, it can be dangerous, in this case, mainly because rushing without clear expectations of what you want to achieve is a costly waste of time.

With any technology so attractive and with so much potential, there is a danger that the impulse not to miss it may cause too hasty or ill-conceived action.

The important thing to remember is that, as with Artificial Intelligence and Big Data, it is something that will change the world forever, but it is likely to be a gradual process. Undoubtedly, every aspect of the business is constantly affected and reinvented by technology, but there are always false starts and failures along the way.

Those who avoid this fate will be those who are posed with a clear understanding of what they are trying to achieve, and a strategy to get there.

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