What is especially important to have on the radar in the new year in the crypto world? We have identified eight different topics on which a lot will happen next year. Opportunities and limitations of business models, given the transparency of the blockchain.

This article is part of a cooperation and was originally published on 10×10.ch

Transparency of the blockchain reaches application limit

By 2020, more and more traditional companies are likely to find that real use cases based on public blockchains are not compatible with their existing business models. Block-chain-based applications promote transparency, a characteristic that does not suit many traditional business models. For example, Axa Insurance recently had to discontinue its flight insurance solution based on the Ethereum blockchain.

The insurance company cited insufficient demand as the reason - the commercial goals could not be achieved. No official figures are yet available, but the loss ratio, i.e. the relationship between premiums and compensation, was probably very negative - that much can be read from the transaction data on the blockchain. This kind of real-time transparency naturally runs counter to traditional business models: the conventional insurance model, but also that of the banks, lives to a large extent from intransparency and the asymmetry of information between provider and customer.

For the customer, transparency is always an advantage

The more public transparent infrastructures of any kind exist, the sooner customers will notice that their offer is better than that of traditional non-transparent models. It is quite possible that in 2020 we will see other companies that will have to go through similar experiences as Axa Insurance has had with Fizzy.