The New World
When the blockchain technologies have just appeared, they were considered the future basis of all the economic and social processes. The majority of these ideas are still referred to the field of futurology. The fact that dozens of blockchain projects appear helps evaluate the entire market’s picture and find prosperous directions.
The first group of blockchain apps unifies the projects initiated by traditional companies. Using new technologies allows to significantly optimize business processes. Economic effect in such projects consists of the reduction in operation time and personnel expenses decrease.
The second group in blockchain apps is more diverse. First of all, it’s about startups using such technologies for their economies. Primarily, these are blockchain platforms (Ethereum, Tezos, Stratis, and the Russian platform Waves). They create an ecosystem and personal version of blockchain technologies which can be used by other startups.
The field of implementation for the distributed economy is measured by the startup creator’s insight. For example, the Israeli company La’Zooz sets itself up as an alternative for the online taxi services. The drivers are paid with the company’s tokens (virtual coins). They are also assessed to the drivers: Driving not faster than 20 km/h is a sort of peculiar mining form.
Active development at the junction of smart-contractors and the Internet of Things are still going on, like the above-mentioned project Slock.it. “Smart houses” have already appeared with appliances working in a closed system. The Russian project Machinomy is trying to create the highest possible open platform with the possibility to connect appliances over the globe. The blockchain platform allows the participants (individuals and groups of people) interacting directly and exchanging the information and provides an opportunity for a much more flexible pricing. In the project Slock.it the money has been assessed during the renting time. The Machinomy developers are planning to implement this principle in the electrical energy system and to allow people paying the electricity bill to the lamp and not to the company generating the energy according to the average rate.
In the field of blockchain technologies, there are also games and messengers. Etheroll (the project of the bones game that had the emission in February 2017) can be considered as the last one.
Recently the project Beyond the Void has been launched, it is a role-playing online game where blockchain technologies are used to secure the players’ rights to specific game assets (e.g. weapon and armor). It’s remarkable that Vitalik Buterin came into the world of cryptocurrencies due to the online game World of Warcraft, where weapons could be bought for bitcoins.
Ventures with cryptocurrencies at the moment have no system risk for the global financial system, the scope is different. However, there might occur problems with cryptocurrencies in case of exchanging them into fiat money.
The most uncomfortable news for blockchain communities has come this year from China. The People’s Bank of China at the beginning of the year has prohibited the local stock exchanges BTCC, Huobi, and OKCoin to withdraw the cryptocurrencies applying to the law of white-washing.
Now the Chinese Central Bank is working on its own rules regulations for the cryptomarket, which as it’s expected will require disclosing clients personal data. There’s the third group of risk detected, it’s politics. A great number of states try to control the turnover of cryptocurrencies.
On 1st April 2017, Japan gave to the Bitcoin and Ethereum the status of legal tender. The market reacted accordingly: by the end of May, the Bitcoin has risen from $1,000 to $2,300 and since the beginning of 2016, it has got up from $450 to $960. One more Japanese innovation was 8% of consumption tax exemption for transactions in cryptocurrencies. It’s also true that cryptocurrencies have not become the real money, they are set to assets and are allowed to be used for mutual exchanges and in payments for goods and services.
The similar news comes from the USA. The companies that attract funds on blockchain platforms will be obliged to register their transactions. The same rule works for crypto-exchanges as well. Otherwise, they may be punished by law.
The framework of interaction chosen by US and China looks like a potential source of problems. It might affect the emission of tokens popularity. On the one hand, the startuppers’ enthusiasm will come across with complex bureaucratic procedures. On the other hand, the market can lose projects looking for no investment, but for venture collection of funds against the background of booms in this area.
There’s a more unpleasant future scenario. One of the key moments of cryptocurrencies is the anonymity of the maintained transactions. Hardly would the cryptotraidors show positive reaction towards the government’s intention to control their activities. It’s possible that the world of Blockchain will be on the brink of war between the government and crypto-anarchists, as a result, “a gray” market of virtual currencies might be exchanged into fiat money.