Report CoinDesk “state of the blockchain” in the 3rd quarter of 2016 summarised the main trends, news and developments in the public and corporate sectors of application of blockchain technology since the beginning of the third quarter of 2016.
This article summarizes six key theses harakteryzuyutsya the state of the blockchain, according to the research team CoinDesk. With quarterly and annual reports CoinDesk, can be found on their website CoinDesk Research.
It is no secret that the technology, which the world calls a “blockchain”, evolved.
From the invention of the Bitcoin blockchain to implementation of new alternative applications of educational technology in unexpected ways, the expansion of the blockchain has a significant impact on the industry.
Similarly, writing a report on the state of the blockchain in the 3rd quarter of 2016, the research team tried to reflect these changes in the structure of the report.
Once dedicated solely to the events on the Bitcoin blockchain, the report now consists of two sections, one of the public block chain (describing Bitcoin and Ethereum), and the other on the closed corporate blockchains (telling about startups such as R3CEV, Chain and DAH).
Full report CoinDesk contains a number of findings, although most of them focused directly on the impact that a particular phenomenon has on the market.
For example, although the interest is very diverse, the presented data show the decline in confidence in industry start-UPS, as evidenced by the decline in the number of small and implemented at the early stages [of startups] investment.
The volume of venture capital directed to the blockchain of the company in the 3 quarter reached only $114 million, with two major investments: Ripple ($55 million Series B), and Juzhen Financials ($23 million Series A) amounted to almost 70% of this amount.
Overall, investments during this period also decreased by 17% compared to the same period last year against $155 million invested into the industry in Q3 2015, and 18% YTD, compared to $458 million invested for 1-3 quarters of 2015.
In other aspects, the impact of this change is felt in new ways.
1. The decline in investment in the blockchain and the uncertain prospects for
One of the reasons for this decline may be a change in how start-UPS operate in the market.
As seen in the case of funding startups Ripple and Juzhen, more money given to those startups that want to work together (not against) the big-timers in the industry.
This means that as more firms the old-timers, educational blockchain, looking for new sources of revenue, the research team CoinDesk klassificeret more startups as the hybrid blockchain business.
Companies such as, for example, Blockstream, Paxos and Ripple doesn’t quite fit into the category of a public or corporate blockchain. So, in the case of Paxos, the company also has a separate arm (itBit), providing services on the market of the open blockchain.
This led the research team to CoinDesk need to “break up” a system of classification, dividing infrastructure into two categories (open and closed blackany blackany [restricted]) and startups — three (public, corporate and hybrid).
The report indicates that the majority of venture capital in the quarter invested in the hybrid blockchain startups — a sign that, like the uncertainty at the infrastructure level migrates upward.
However, there is not a sufficient reason to call it a trend. In fact, the prevailing attitude is manifested in the discrepancy between interest and investment, as evidenced by the continuing backlog of investments in corporate and alternative blackany.
For example, despite the widespread belief that Ethereum could become one of the most promising public block chain due to its innovative use of smart contracts, it start-UPS still need to raise significant financial resources.
The data presented, however, does not indicate the trend of a particular infrastructure models
2. More companies than ever are launching their own pilot projects blockchain
Corporate blockchain projects coming to the market, but slowly.
According to research by CoinDesk, started at least 70 different pilot projects blockchain networks participation in these projects more than 100 companies.
However, as in the investment sector, the existing financial structure has not yet signaled the market about those projects that they consider most viable.
In an attempt to classify publicly announced pilot projects, CoinDesk research team found that these projects cover 25 different areas. The first signs indicate that, as the potential applications could be banking and insurance business, clearing and settlement operations, trade Finance and international payments.
Although data are not entirely clear, so definite conclusions difficult to do.
More visible and notable is the growth in the number of participations in projects with the major banks and stock exchanges, representing by far the most active sector.
The big banks launch a pilot blockchain projects. 14 of the 30 largest banks are experimenting with pilot projects of the blockchain.
3. Cryptocurrency precaut its place in the market
While the digital currency (or digital assets, as they are now sometimes called) quite volatile, there are signs that the market has determined and reached consensus, at least for those of them in which he sees the greatest value in the future.
One of the most notable findings of the report is that the top four cryptocurrencies by market capitalization remain the same as in the first and in the third quarter.
Bitcoin remains the largest asset (with a market capitalization of nearly $10 billion), but other growing interest in the first place — Ethereum (it is digital currency live — the only one with a market capitalization above $1 billion).
However, the market share of Bitcoins is reduced, indicating that investors in the public domain of the blockchain may see the potential as a “blockchain of the future” network, consisting of several blockchains.
Overall, in Q3, the share of alternative cryptocurrencies in total market capitalization increased to 21%, an increase of 2% compared with the 2 quarter and 4% compared with the 1st quarter.
Top 5 digital currencies in market capitalization. Bitcoin, Ethereum, Ethereum classic, dash and Monero more others have increased the capitalization for the year 2016.
4. Startups in the sector publicly available bitcoin blockchain looking for alternative markets
Confirmation of the above findings is that many former startups started to work with Bitcoin, show interest in alternative digital currencies (providing services for blockchains).
Perhaps nowhere has this been more evident than in the exchange sector, because now almost all major bitcoin exchanges support the ether, the currency of the Ethereum-a blockchain .
The research team CoionDesk believes that the blockchain startups, it seems, are increasingly seeking to provide services in multiple blockchains in cases where there is a simple way to adapt their services to market.
For example, exchanges and miners have demonstrated the greatest support Ethereum, and startups focused only on ensuring consumer access to Bitcoin may notably fall out of the mainstream [unlike most start-UPS seeking and offering users an alternative to Bitcoin].
Among the largest of the bitcoin brokers, very few offer consumers services for purchase and sales of other alternative cryptocurrencies.
Exchanges and miners support public baccani, including Bitcoin and Ethereum. Most of the Ethereum exchanges also trade and bitcoin; the Top 10 Ethereum exchanges sell bitcoin. Some miners choose to distribute their computing power between both networks. Bitcoin miners allocate 30% of the capacity on the network the Ethereum. Little “consumer portals” for access to alternative currencies. Coinbase is one of the few brokers offering the air.
5. Bitcoin is still most often mentioned in the media, but the blockchain is catching up
While the Bitcoin industry sees business opportunities in alternative blockchains, the media don’t seem to have time to adapt.
CoinDesk research team, believes that, despite the growing hype around the blockchain, Bitcoin remains the dominant focus for major media publications.
Bitcoin is most often mentioned in the US media, the blockchain and Ethereum are far behind.
One of the reasons for the delay may be that major search engines show that potential readers are still fascinated by the opportunity to earn money on the interest and activity on the open blockchain markets, namely, bitcoin.
As shown in search queries, “price” remains the most popular auxiliary word in the search for “bitcoin” and “broadcast”.
When searching the Internet for the first positions in the search results are given a phrase with the word “price”.
6. The interest of the Central banks is growing and will probably continue
In the world of governments, activity increases in line with the emerging interest of companies and the continuing interest of the society.
The research team CoinDesk showed that the major financial institutions around the world are currently actively exploring the technology [the blockchain], at the same time, there is growing interest from governments of Asian countries.
As shown by the statements of the government of Singapore in the 4th quarter , this trend is growing and shows no signs of slowing down.
Perhaps most encouraging for [the blockchain] is that the study of technology major Central banks keeps the opportunity that they can begin to play an active role in the promotion of its development in the 4th quarter and beyond.
Central banks in Asia are starting to explore the blockchain.
For more information, get your copy of the report from CoinDesk “state of the blockchain” in the 3rd quarter of 2016 here.