Forbes: How will blockchain develop in 2017?

In the past, blockchain, known as a distributed ledger technology that can be used to conduct financial and non-financial transactions, seemed to be a mysterious concept that only technical people could understand. However, in 2016, the development of various blockchain applications helped more and more people and businesses see the potential of this technology.

For the rest of us in the business environment, blockchain is still in the exploratory stages, but as we move further into 2017, I think there are a few developments that we should keep an eye on.

In the blockchain payment industry, most applications are related to some kind of banking services or financial applications, and I see some trends developing. However, some of these trends are no longer limited to the payment field, they may bring applications to other business fields and help startups and established companies solve specific needs.

Blockchain application growth

As blockchain technology is further studied and understood, one of the major trends I predict for 2017 is that it will be used in a variety of industries , especially in business areas where there are middlemen in transactions. This means that many service-based businesses will be decentralized. For example, ride-sharing transactions may be completed directly between drivers and passengers on the blockchain, which may put once-disruptive companies such as Uber and Lyft in a revenue dilemma.

Other applications include streaming services. We can use blockchain to let music creators decide how to sell and share their music, and when the song is downloaded, everyone from the writer to the producer to the singer can get paid immediately through the blockchain, rather than getting their share of the labor remuneration later. Instead of waiting for the publishing company to provide a royalty check, creators can use blockchain applications to have greater control over the process of their work from publication to payment.

Blockchain Regulatory Framework

The most challenging aspect of blockchain development is the lack of a regulatory environment , and formal blockchain regulation can make countries more comfortable with the use of blockchain. Recently, countries like Japan have made efforts to formulate regulations to regulate the development of Bitcoin in their country, and other countries have also established working groups to study the issues involved in the use of Bitcoin and blockchain. This is all progress towards a larger international framework for blockchain.

In terms of standardized regulatory frameworks for blockchain to operate across geographic boundaries, these are currently fragmented and blockchain has been slowly catching up. However, there are signs that multiple countries will make significant progress in regulatory frameworks and determine certain types of regulatory processes, which will increase blockchain adoption.

Urban solutions for managing future smart cities

I think one of the coolest blockchain applications is its use in the development of IoT-enabled “smart cities” that can be used to solve many of the problems cities face today. The article describes how this new version of connected urban infrastructure will work in the physical infrastructure, including various types of devices, vehicles, and public stations, and how data will be captured and exchanged to manage the specific systems used to run these cities.

In communities and business districts, this physical infrastructure can use blockchain to oversee data exchange and ensure secure and efficient processes for these interconnected networks. In 2017, there will be more city projects to test the data integrity of this information managed using blockchain. This will help us better understand how to improve cities in the future. For example, Australia is currently examining potential applications of blockchain, including improving coordination among government departments, food safety, transportation and national logistics, etc.

New levels of security and privacy

As with cybersecurity-related issues, blockchain’s security and privacy capabilities will receive more attention. These capabilities are applicable to a wide range of areas, including the payments industry (where hacks and data breaches have plagued online retailers) and companies that provide contracts, agreement forms and data storage.

Once blockchain has been tested, it is likely to achieve rapid development. Therefore, in 2017, the ability of blockchain will be tested and the existing security and privacy protocols will be challenged. Scientific American has published a blockchain research report, arguing that using blockchain as "a framework for digital infrastructure" can improve social public archives and strengthen representative and participatory legal and governance systems, as well as provide enhanced security and privacy for data transfer.

Global Engagement

Although much of the blockchain research has come from Western countries, I have seen the benefits that blockchain can bring to Asian countries, especially China. Chinese developers and businesses have sought advice and insights from blockchain experts in other countries. The fact that world powers are increasing their interest is a good sign for blockchain, as it means that blockchain technology is starting to catch up and may become a more mainstream technology in 2017.