Several predictions on the development of blockchain technology in 2016

As Goldman Sachs said in its report: Blockchain technology is ready to take center stage. So looking ahead, what progress will blockchain technology make in 2016? Here are some predictions about the future development of this technology.

Blockchain technology will be combined with other areas of the Internet financial system

This year, major banks such as Barclays and Goldman Sachs, as well as many other high-tech companies such as IBM and Intel, have explored the potential of blockchain technology. Next year, financial institutions are expected to reach even higher levels of interest in this field.

Chris Hart predicted in a blog post on Level that next year financial institutions will focus more on combining blockchain with other areas of internet finance.

Adi Ben-Ari, co-founder of Applied Blockchain, agrees:

“The network nature of blockchain technology solutions means that it will not be adopted by any one organization or institution. Many institutions can integrate it, but integrating this innovative technology into their existing systems is a very challenging task and will take years to achieve.

Capital markets adopt blockchain technology

TABB Research Analyst Shagun Bali said that the issue of capital market adoption of blockchain technology is "a matter of time" and no longer just a hypothesis. In the next 12 to 24 months, at least in the second quarter of 2016, private institutions and groups will launch blockchain solutions, but the use case of equity settlement may take more than a decade.

He said: “In the capital markets, some top use cases will emerge, providing new development opportunities for companies and generating new revenue, including IPOs, interbank payments and corporate debt.

The popularity of private blockchains

This year, the world's leading banks have shown a keen interest in blockchain technology. Ben-Ari said that due to heavy regulations within the banking system, the adoption of public blockchains will face difficulties. Andrew Keys from ConsenSys believes that public and private blockchains will coexist.

He said:

“Private and semi-private (or consortium) blockchain solutions will continue to gain popularity among financial institutions.”

Regulatory issues regarding blockchain technology

Authorities and regulators will gradually understand the concept of "blockchain" and given the rapid development of this field, they will strive to understand the technology and consider how to effectively regulate it, Chris Hart said:

“The SEC has approved Overstock.com’s issuance of shares on the blockchain, so I think regulators will continue this trend and formulate more specific regulations. Although regulation is not a pleasant thing for banks seeking innovation, it is inevitable.”

Blockchain technology development is ahead of digital currency

In the past year, blockchain technology has begun to be applied by financial institutions in various fields as a general ledger. Ben-Ari believes that more blockchain applications will appear in 2016.

“The hype around blockchain will continue, people will hear about it, and they will start to realize that blockchain can disrupt… everything.”

Original article: http://www.econotimes.com/Top-Predictions-For-Blockchain-Technology-In-2016-136330
Translator: printemps
Editor: printemps
Source (translation): Babbitt Information