After a partial recovery in the first half of 2019, the crypto markets were thrown to international government scrutiny and regulatory uncertainty mid-year, a phase marked by Facebook’s public launch of Libra in June. Far from the market recovery investors had hoped for following the 2018 crypto bear market, the blockchain space progressed in technological maturity while seemingly underperforming “crypto-focused” expectations. Nevertheless, digital assets have added 63% to their aggregate market capitalization so far in 2019 (as of writing in November). Even if 2019 wasn’t characterized by frothy speculative trading and dramatic highs as in previous years, it was a year of infrastructural progress.
Despite having operable smart contract blockchains like Ethereum in production, projects have struggled with product-market fit for decentralized applications in recent years. The industry might simply be too early. If we look back to how “mobile applications” progressed, they didn’t really solidify into a multi-billion dollar business until their infrastructure — smartphones like iPhone and mobile operating systems like Android — became extremely accessible, usable, and affordable. In the same way, blockchain infrastructure in the form of scalable blockchains, user-friendly wallet experiences, node and data services, and financial industry support for digital assets, might be a prerequisite to building decentralized applications at a rate which produces mainstream market fit. This kind of infrastructural progress was the subject of 2019.
Down in the lower layers of the decentralization stack, several second-generation smart contract platforms — notably Polkadot, Cosmos, Tezos, and NEAR — provided innovations in throughput, interoperability, network governance, and usability, and are challenging Ethereum’s market share and winding 2.0 roadmap. Additionally, Dapper Labs announced Flow, a base layer dedicated to mainstream-facing usability of games and their non-fungible tokens and digital assets, while simultaneously announcing a major partnership, NBA Top Shot.