What’s next for Blockchain?

 

Blockchain has taken the world by storm. The latest forecasts predict the industry to grow to a staggering USD 60.7 billion by 2024.  Already, at USD 6.3 million the amount of money raised through ICOs (Initial Coin Offering) for the first quarter of 2018 is 117% of the total for the previous year.

There is no doubt, that the benefits offered by blockchain such as decentralization, dramatic reduction of transaction costs and time, integrity and transparency of information have secured its place across all  industries.

The main challenge associated with adopting blockchain are the risk associated with the lack of regulatory oversight. If last year is identified as the year of ICOs, in 2018 the focus is clearly shifting towards regulatory acknowledgment of crypto economics.  While some countries decided to take a hostile stance and effectively plan to ban cryptocurrencies and blockchain (India, China) others are taking steps to accommodate the cryptocurrency market.   Crypto friendly countries are the ones who have decided to foster innovation and progress by first of all acknowledging blockchain and cryptocurrencies as taxable assets/property. Most importantly, however, is that these governments such as US, Japan, Russia have taken steps to develop a regulation and legislation framework to protect the investors.

Similar trends can be identified on the business end of the blockchain. ICOs have presented themselves as an alluring alternative to venture capital, especially for startups because of the ease and lack of regulation. Naturally, because of lack of proper oversight some ICOs have been reported as Ponzi schemes, adding to the list of investor risk considerations. This is pushing businesses to structure ICOs more carefully, taking into consideration legal and regulatory challenges.  According to a PwC report, best business practice is now leaning toward a “hybrid” model, making best of both ICO and VC funding. VC lends support to the business; ICO brings enormous fundraising opportunity and creates a sense of community around the project, similar to crowdfunding.

It comes as a great pleasure to see that Starin is ahead of the curve of the evolution of blockchain. We have been working very hard on our flagship innovation project – GRE8 digitized units. The challenges and tasks that we have encountered along the way of materializing our idea have lead us to design a model that follows trend and best business practices today.

Stay tuned for the next article where we will feature what makes the GRE8 fund unique.

 

Build wealth the smart way.

To know more about Starin’s digitized units, email us at info@starin.com.au .

 

Sources:

https://www.pwc.co.za/en/press-room/icos-are-evolving-to-a-more-robust-and-regulated-model-.html

https://globenewswire.com/news-release/2018/02/14/1347823/0/en/Blockchain-Market-Size-is-anticipated-to-reach-USD-60-7-billion-by-2024.html

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