2019 Heralds Major Changes to ICO / STO Business Strategy

2019 Heralds Major Changes to ICO / STO Business Strategy

There are thought to be over three thousand ICOs currently in existence. And whilst the numbers have been slowing dramatically, the loss in momentum is in part attributable to a growing maturity in the marketplace.

ICOs are slowly morphing into regulatory-compliant STOs, and tokens are increasingly becoming bona fide utility tokens. As part of the same phenomenon, there has also been a noticeable change in how blockchain start-ups are seeking to solve problems in industry.

Previously, ICOs and other blockchain start-ups were largely stand-alone projects proposing stand-alone products which, they claimed, would replace already-existing products within the marketplace. The problem is that, so far at least, there has been no example of such a product having experienced mass adoption, much less turning existing industry on its head.

That may yet happen, but most analysts see another possibility as the more likely scenario.

“Blockchain as a Service”

And this is where it now appears that blockchain technology is changing in a business sense, at least. Newer arrivals in the ICO / STO space are proposing blockchain solutions as a complement to existing industry solutions as opposed to seeking their replacement.

The concept is known as “Blockchain as a Service”. One example of the phenomenon is Cryptyk. The project is aiming to add a blockchain layer to existing cloud solutions providers such as Google and AWS.

Cloud services are by their centralised nature vulnerable to attack. The recent example of Uber is a case in point. With a blockchain layer built on top of such existing services, Cryptyk are extending – not replacing – such services, and are such able to piggy-back on the success of those industries, but also adding value by addressing their drawbacks.

This Blockchain-as-a-Service model may be the real source of disruption brought by distributed ledger technology. And if it is, the blockchain will have heralded an evolution in industry, not a revolution – and it is this approach that may ultimately see cryptocurrencies become mainstream.