New guidelines from the Securities and Exchange Commission and other regulatory bodies will boost the growth and adoption of blockchain and crypto transactions.
The SEC has become increasingly vocal across the community on expressing their point of view. Last year in particular we saw an array of charges for those who were operating unregistered securities exchanges.
Multiple companies will continue to lobby the SEC for a bitcoin exchange-traded fund with serious backing from industry powerhouses like the NYSE. Having new guidelines and more regulations will allow for more transparency and give the opportunity for legitimate businesses to invest and strengthen their position in the market.
It will be increasingly common for every new blockchain or distributed ledger platform to have some combination of proof of stake and other consensus logic to build consensus. For example, companies similar to the alternative blockchain Hedera Hashgraph utilize an innovative gossip protocol to build consensus.
This year, we expect proof-of-work protocol to be primarily used in bitcoin as it has in the past. Issuing a PoW enables businesses to go deeper with mining and define exactly what is being built for the distributed ledger.
Last year, there were heightened discussions around security tokens and liquidity, and this year security tokens will be a driving force.
With more companies developing ready-to-use capabilities like KYC, token creation, integration to exchanges and more, the concept of security token and its benefits will finally be realized. These ready to use solutions will allow for more industrywide adoption and therefor attract interest from new investors.