If You’re Into that ‘Bitcoin Thing’ or Cryptocurrency, You Need to Watch Out for Four Main Changes
Cryptocurrency is still a nascent market, which makes it difficult to predict trends. There is only about a decade of history to go off and having the same situations a couple of times does not tell investors what is coming. For months and month, analysts and experts have predicted that the reprieve of the bear market would come from institutional investors. However, price changes and user adoption will not likely be the place to look. Instead, a recent article from Bloomberg suggests that the “real action” is “in the plumbing.”
The crypto market has faced naysayers and stubborn opponents for quick some time, but no technology that has changed the world has ever done so without a few critics. When automobiles became popular, the economy had to invest in roads, service stations, training for driving them, the funds to pay for these vehicles, and many more additions. The same has had to happen for other innovations that have changed the world. Like the Internet, telephones, and personal computers. As Bloomberg states,
“adoption is characterized by bubbles, frenzies, and crashes.”
Customer craze did not last over the last 10 years, but the interest in blockchain technology has helped to keep it alive. Through the integration of both cryptocurrency and blockchain technology, the industry has thrived, and many new tech options have arisen from blockchain technology. Elaborating, the news website noted, “This caused some people to work on integrated solutions from core blockchain functionality all the way to direct user interface, in conflict with the crypto ethos of ‘release self-contained tools, with no copy protection or controlling organization.’ Others build niche applications with value-add so great even small user bases can pay for development.
Bloomberg brought up middleware, which allows blockchain to be involved with other crypto applications, which it considers is “an intriguing third way” to reach customers. Bloomberg described how middleware will be the catalyst behind four major releases this year, which could either work or prove that blockchain is not the innovation that crypto truly needs.
Four mainnet releases that the Bloomberg writer, Aaron Brown, brings attention to are Cosmos, Nervos, NuCypher, and PolkaDot. Unlike traditional software, the mainnet launch follows significant testing in the crypto world. Modifications cannot easily be made after it is released to the public. The mainnet releases listed above each play on different crypto-based concepts.
Cosmos, as Bloomberg says,
“is a hub other blockchains plus into.” Basically, a blockchain can be taught the proper way to interact with it, and they will have the capability to do the same with any other blockchain that is connected to Cosmos.”
“offers the security features of a blockchain without the overhead that makes Bitcoin and other global blockchains slow as usage grows.”
The information that Nervos collects is limited, only taking the data that is
“essential for security and contract enforcement.”
NuCypher allows consumers to have “enforceable secure storage” that can contain all of the user’s personal data. When releasing this data, the user will have the ability to selectively release information as it pertains to the crypto interaction.
Bloomberg considers PolkaDot to be
“the most expensive and ambitious of the four.”
Continuing, the Bloomberg writer said,
“Like Cosmos, it connects blockchains, but through bridges rather than a hub. Like Nervos it provides common security for all connected chains.”
Summarizing these four platforms to watch out for, Brown says,
“Failure, either technical or just lack of interest in adoption, suggests either crypto growth will be slow and driven by niche applications, or will lose some of its decentralized public features with future growth coming from centralized organizations protecting their investments with proprietary features—like Microsoft selling operating systems, developer tools and end-user products; or Apple bundling hardware and software. I don't expect major excitement in crypto prices in 2019, nor in rapid user adoption. Keep your eye on the middle layer.”