An article published by the WSJ on Jan 1st on cryptocurrencies reveals that blockchain technology has limited ‘tangible use case.’ The findings of the report establish that the active users of these virtual currencies are developers.
The article uses the case of Ethereum (ET) that it is a challenge for developing applications in the spectrum where blockchain is not the platform deployed. They also found that developer kits are not available for iOS as well as Android developers hoping to explore the medium.
Despite the slow-approach to development of cryptocurrency kits, the article quotes that there is significant interest in this technology, though there is limited adoption of these digital assets in real time.
There was an endorsement of interest gaining momentum in the year ahead since large financial players have taken these digital asset trading. Once the real economic players begin to take a position in this platform, then mass adoption in real-time is around the corner, propose many industry experts.
While the article takes an academic approach in tabling statistics of ‘tangible use’ of cryptocurrencies in the country, it has failed to see the actual in-depth activity continuing across the industry. Primary developments include the much-awaited platform – Bakkt. The latter is a specialized platform for institutional investors and will be launched by Intercontinental Exchange by February this year. The attempt by this platform is to bring together the conventional investors as well as the traditional investors.
While there are a lot of ICOs launched in 2018, the high instance of fraudulent activity has left a negative impact on the growth and adoption of the industry. In the first instance of the crimes, the regulatory body in the US, the Securities and Exchange Commission proceeded to control the working of crypto exchanges. It is also engaged in developing more rules and regulations for the industry so as to gain more control over the operations of cryptocurrencies. However, this is an antithesis to the spirit of cryptocurrencies.
The primary driver behind blockchain and cryptocurrencies is that they are deregulated entities engaged in the purpose of peer-to-peer transactions. The arrival of a third party or a monitoring agent to oversee the activities of the blockchain is abhorrent to the larger community of crypto purists.
The article, however, does offer a point in the timeline to look back on the year that was for cryptocurrencies in 2018. It also gives an insight on how the larger world, outside of the limited and marginal number of crypto users perceive these digital assets, their regulation, and their use.