Blockchain technology has evolved successfully after seeing multiple ups and downs in its bumpy ride. These days, blockchain gains ground in the corporate world not because of cryptocurrency but because of the security and swiftness it offers in online transactions. All the blockchain trends are based on its inherent characteristics of decentralization and transparency. In this article, we are going to discuss the key blockchain technology trends that can show the unmatched potential in the future. But, before moving ahead, let’s have a quick look at some interesting stats on blockchain.
- Over 42 percent growth in blockchain is recorded per year till 2022.
- More than 71 percent of business leaders use blockchain in one or another way.
- Global blockchain market size is expected to grow at a CAGR of 82.4 percent from 2021 to 2028.
- The global market of blockchain products is expected to react USD 20 billion by the year 2024.
All these stats are sufficient to show the increasing importance of blockchain technology across the world. No wonder that blockchain app development is skyrocketing as the manufacturing, media, finance, telecom, healthcare, energy, and even government sectors show keen interest in building blockchain-based apps. Future trends of blockchain technology are even more promising for SMEs and startups alike. But, before digging deep into this topic, let’s understand the concept of blockchain.
Blockchain Technology- What Does It Mean for Us?
Blockchain technology, in layman’s terms, is an immutable and publicly accessible ledger or database useful for storing digital information or records of transactions in blocks. Here, all the blocks are paired to each other with a hash function. The hash code contains the information of the previous block in a large chain of blocks. For example, the current block has the hash code of the previous entry and the next blog will have the hash of the current block. This arrangement makes the blockchain highly secure for storing transactional details online.
As a breakthrough megatrend, blockchain technology is an exchange network for transferring value between peers. It eliminates the need of middlemen and legally authorizes a transaction. In a way, blockchain technology remains highly secure and valuable for executing, storing, and accessing online transactions. All sorts of high-value and cross-currency transactions can be stored in the blockchain. It is one of the major reasons for the growing popularity of blockchain in the corporate sector. Let’s go through some other reasons as well.
Key Reasons for Increasing Popularity of Blockchain Technology
In this challenging business scenario, keeping the record of all the transactions in a secure way is essential for enterprises. Traditionally, companies tend to pass this responsibility on to banks and brokers. But then, passing this responsibility to any third-party can raise a potential issue of data security. This can provide the third-party with huge power over the confidential corporate data.
What’s more, in this traditional method of passing the responsibility, there is always a possibility of data tampering in financial transactions. Hackers can also attack to get access to the financial and sensitive data. Here blockchain development trends lend a helping hand. Blockchain technology not only safeguards the online transactions but also keep the records in a secure manner.
The blockchain network is known for transforming the online security domain with its robust distributed version of databases. This technology saves a lot of time in processing and enables users to execute online transactions swiftly. In a way, blockchain can save time, money, and effort for the users. As a result, almost 50 percent of people in the corporate world have started using blockchain technology.
Increasing popularity of blockchain drives the industry sector toward advanced blockchain trends. Entrepreneurs or business persons can make the most of this technology by implementing these trends. Let’s understand these trends and their impact in the future of enterprises.
Latest Blockchain Development Trends to Look for in 2023
The core objective of blockchain technology is to maintain a record of transactions in a secure and decentralized manner. Here are some of the top trends that are going to make this technology ready for the future.
1. Environment-friendly Solution
This will remain one of the top blockchain trends in the year 2023. It is simply because most of the popular blockchain protocols consume large amounts of power. Categorically, protocols that depend on Proof of Work need a lot of computational work for validation. It results in higher usage of energy. This situation leads to the development of a greener blockchain. We will see more attention on building such blockchain in the coming years
2. Non-fungible Tokens and Tokenization
NFTs or Non-Fungible Tokens are gaining popularity in the business world. They are non-interchangeable units of data that can be stored on the blockchain and users can transact in them using cryptocurrency. NFTs are a viable option in the trading of digital art, video, audio, and photos. As the value of these artistic collections skyrockets on NFT marketplaces, more investors get attracted toward it globally. Also, NFTs can be used as proof of content ownership and origin in the art world. Another use of NFT tokens are in tokenizing offline goods and other real estate values or for new business ventures.
3. Advent of Metaverse
Lot of hype has been created around the Metaverse in recent times, and for good reason. Facebook has already changed the company’s name to Meta and Microsoft is planning to offer metaverse workplace service to extend teams remotely. Talking about the definition, the Metaverse is an immersive 3D world that can assist users for work, play, and communication by using a combination of AR, VR, and other vision-related technologies. Blockchain technology will drive the Metaverse by handling NFTs, payment methods, and identity authentication in coming years.
4. DeFi Solution and Additional Safety
DeFi solutions are highly useful for increasing efficiency. ‘DeFi 2.0’ surfaced amid its increasing popularity in the second half of the year 2022. This trend is here to stay and will keep on improving over the period. These upgrades in DeFi solutions will help designers come up with improved products and new models.
5. Rise of DAOs (Decentralized Autonomous Organizations)
People give many reasons for the increasing popularity of DAOs. One of the reasons is that many believe that the decentralized nature of DAOs makes it possible to get exemption from taxes and legal liability. But, in reality, DAOs enable participants from many countries to collaborate in establishing a multinational corporation. DAOs also facilitate hiring of foreign employees. As per a survey, there are 3.8 million DAO participants worldwide, and out of them over 680,000 are actively participating in the projects.
6. Layer 2 in Blockchain
Growing popularity of DeFi and yield farming is responsible for the strong congestion in the blockchain network. It is, therefore, necessary to scale the blockchains using two major ways-
- Scaling the base layer itself (L1)
- Scaling the network by offloading some of the work to Layer 2
Layer 2 is built by using third-party integrations and off-chain solutions. It is primarily developed to increase scalability. Polygon and the Lightning Network are a few popular examples of Layer 2 networks that can easily reduce the load on Layer 1 networks like Ethereum (ETH).
It is fair to mention that blockchain trends are full of technological advancements and show us a glimpse of the future. These trends reflect the ever-changing business requirements and increasing complexities. It is interesting to see how blockchain technology will evolve further in the year 2023.
At Silver Touch, we have a team of experienced blockchain developers for your project. We provide our corporate clientele with a range of services including mining pool development, smart contract development, wallet services development, and exchange software development. We utilize the blockchain technology trends to make the most advanced, enterprise-level software. Just drop us a line at email@example.com to know more about our blockchain-based services in line with your business needs.