2018: When Privacy and Decentralization Collided

This is where the third major trend of 2018 comes in: thecorrection of the blockchain hype cycle.

Nearly any problem could be solved by "Throwing a blockchain at it," with WIRED famously categorizing 187 things the blockchain is supposed to fix.

While there may be no end in sight for the first two trends - monopolistic platforms still lack oversight and transparency, and the worst breaches of data privacy are likely yet to come - there are signs the blockchain hype cycle has stabilized.

"While blockchain is great for correctness and transparency, it fails in privacy. Today, as blockchain is applied to the financial system, we are able to see all transactions that have ever taken place. In a future where we have decentralized social networks, we will see all likes, posts, and connections. In other words, blockchains alone cannot give people control over their own data."

Rather than rejecting the utility of blockchain, we hoped that people would see blockchain for what it was good at being - a decentralized verification layer, not a complete platform.

When combined with other decentralized technologies such as blockchain, we can create foundational platforms for unstoppable applications that preserve the privacy of their users.

In 2019, we can expect to see more and more projects in the blockchain space embracing privacy solutions, including Ethereum itself.

Protocols based on these privacy technologies have as much potential to reshape the world as blockchain itself - if not substantially more so.

In 2018, the conversation around the potential of blockchains turned rapidly from "What can't they do?" to "What can they do?" Pundits began to declare blockchains a solution in search of a problem.

We also expect people to understand the limitations of blockchain as a privacy solution - again by design.