Blockchain - The Promising Future
Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.
For 2023, the consensus among experts is that as blockchain technology improves, it will play a greater role in society and the economy. It is likely to be a transitional year where more people and businesses will move towards integrating Web3 technologies like blockchain to utilize their benefits. According to Grand View Research, the global blockchain tech market is predicted to reach $1,432 billion by 2030 with a Compounded Annual Growth Rate (CAGR) of 85.9% between 2022 and 2030.
Why is there so much hype around Blockchain technology?
In the past, there have been instances where attempts were made to formulate digital money, but they have not been successful, mainly, due to security and trust issues. Bitcoin had a solution for that through its Blockchain technology. Compared to other databases, Blockchain has no central authority and is operated by the people who use it.
On top of that, the data it contains cannot be faked or compromised. This caused the whole hype and demand. Blockchain has, for obvious reasons, moved beyond cryptocurrency and found implementations in other real-world applications as well. This is where we can start thinking of the future of Blockchain technology.
Applications and the Future of Blockchain Technology
Many organizations across various fields and domains have been attracted to this technology and the future Blockchain applications. Additionally, Blockchain technology has been a part of many studies as a form of disruptive technology that has the potential to be recognized more widely across the world. Let us take a look at the future of Blockchain technology in various fields.
1. Blockchain in IoT and Networking
Companies such as IBM and Samsung are adopting Blockchain technology to develop a distributed network of IoT devices. The concept is called ADEPT and it aims to remove the centralized location for the management of communication between devices for activities that include software upgrades, error handling, observing energy practices, etc.
2. Use of Blockchain in Digital Advertising
Owing to the challenges faced by digital advertising, including bot traffic, lack of transparency, domain fraud, inefficient payment models, etc., promoters and publishers have a difficult time due to the bad players. Through its transparency and reliability, Blockchain has been found to resolve such issues in the supply chain. Advertisement-related transactions can be better dealt with by employing this technology.
3. Government data distribution
Governments are likely to begin implementing distributed ledger technology (DLT) systems that will replace traditional paper-based systems. The migration to digital data systems has been going on for quite some time, but DLT has greater advantages that provide greater trust, transparency and security via encryption and validation features.
4. Greater transparency between industries
In the near future, there is likely to be a single blockchain that is shared between various industries. Having a single system, as opposed to different ones for different companies and industries, makes it easier and more accessible to the public and provides greater transparency along with the inherent security of blockchain.
5. Blockchain and Identity
Identity systems are currently flawed in a number of ways. They are porous, operate in isolation and prone to error. Blockchain systems can solve these problems and provide a single source to verify identity and assets. Blockchain identity can also offer a type of “self-sovereignty” that hasn’t existed before. According to statistics, nearly 1.5 billion people throughout developing nations have inadequate means of proving their identity. An international blockchain identification platform will offer disenfranchised individuals the ability to access legal documentation and the privileges that come with that. With identifying information stored in an open-source encrypted ledger, the information will be more secure than they would be in the hands of some questionable third-world agencies.
6. World Economy via blockchain
Currently, international trade is an inefficient and dysfunctional process that slows down commerce and discourages trade between nations. International trade is also fraught with fraud, counterfeiting, dirty politics and errors. By entering cryptocurrency into the equation, many of these problems will be alleviated. By unifying methods of payment, paperwork and regulation through a single digital international system, much of the fraud and inefficiency can be eliminated. This will give way to a new era, increasing international commerce and fostering greater trust between nations.
7. Future of Blockchain in the Finance Industry
When it comes to the matter of tracking financial properties, Blockchain technology has kept its promise as well as shown consistency. Several financial institutions have invested in this technology after recognizing its potential and beneficial impacts. Because of its transparent ledger system, Blockchain can tackle the flow and dealings of black money flow. Governments are considering it as an option to have more efficient regulations over the countries’ economies.
8. Future of Blockchain in Cybersecurity
For obvious reasons, Blockchain technology’s future scope majorly lies in the field of Cybersecurity. Although the Blockchain ledger is open and distributed, the data is secure and verified. The encryption is done through cryptography to eliminate vulnerabilities such as unauthorized data tampering.
9. Blockchain in Cloud Storage
Centralized servers can pose a high risk of data hacking, loss, or human errors. Cloud storage can be made more secure and robust against hacking with the implementation of Blockchain technology, just like its application in cybersecurity.
Top 9 Growing Blockchain Technology Trends for 2023
Blockchain is more than the foundation for cryptocurrencies like Bitcoin. You can use this innovation for other purposes as well. So let’s look at the main blockchain technology trends in 2023.
- Central Bank Digital Currencies (CBDC)
The blockchain industry is changing the traditional financial system. One of the latest trends in blockchain technology is the adoption of digital currencies by central banks of different countries. This tendency implies that banks will create digital coins analogous to fiat money. According to the recent stats, 87 countries have already shown interest in the CBDC. The following factors influence this interest: virtual money is more cost-effective than cash, CBDCs offer lower transaction fees, and digital currencies can promote financial inclusion.
- NFT Boom
Non-fungible tokens, or NFTs, started gaining momentum in 2021. These tokens will also remain relevant in the future and among popular blockchain industry trends. They’ve evolved into a means for artists to generate vast amounts of money at auctions by providing their digital works of art in exchange. Among other things, this new trend has found a response in the gaming and fashion industries. Consider, for example, that the Dolce & Gabbana brand set a $6 million record for selling their exclusive NFT collection of nine items.
Metaverse should become a virtual world that will provide its users with unforgettable digital experiences. And of course, this world cannot exist without blockchain technology. Therefore, the more popular the metaverse is, the more relevant blockchain technology remains.
- Blockchain-as-a-Service (BaaS)
BaaS is one of the leading blockchain technology trends for 2023. Companies like Microsoft and Amazon have already implemented it. Blockchain-as-a-service will act as a cloud service where users can create digital products using blockchain fundamentals. Hyperledger Cello is one such BaaS project. It is a platform consisting of tools and applications that facilitate the creation of digital products based on blockchain.
- Blockchain to Enhance Social Networking
By 2025, there will be about 4.4 billion social network users globally. Using blockchain on social networks will help solve inherent problems such as privacy breaches, data control, or content authenticity. That is why this technology is a future trend in social networking.
- Blockchain in eCommerce
The eCommerce industry has been actively involved in blockchain technologies. These innovations help improve supply chain management and provide customer data protection. Another blockchain technology trend in eCommerce is the digital identification of users. An example of recent developments in blockchain technology in eCommerce is the Fluz app. It is a platform that allows users to receive cash back for purchases in their favorite stores. Blockchain helps this company record gift card spending and the growth of its social networks.
- Blockchain in Real Estate
Blockchain trends in real estate include various applications, from investor and tenant identification to asset and property management. With this innovation, companies can increase data accessibility and ensure their transparency, boosting the efficiency of work processes by automating them. Forbes claims that blockchain technology is responsible for future innovations in real estate transactions. In particular, this applies to the automation of transactions and the use of real estate smart contracts.
- Blockchain in FinTech
The financial sector is the industry most impacted by blockchain technology. Among the recent trends are the tokenization of assets and the launch of digital currencies. But also prominent applications include data security and the use of smart contracts. Blockchain has every chance to revolutionize the traditional financial system. Transactions will require no intermediaries owing to peer-to-peer networks, the speed of transfers will increase significantly, and the blockchain will ensure the transparency of financial operations.
- Blockchain in Healthcare
Data protection is crucial in healthcare. That is why blockchain technology is in great demand here. But medical record security is not the only blockchain trend in healthcare. This technology also helps establish drug supply chains. It is likely that the blockchain will also serve to verify the educational credentials of health professionals. So far, this practice has not become widespread, but the U.S. company ProCredEx has already launched a service based on the R3 Corda blockchain protocol.
Top blockchain platforms to consider in 2023
Here are the top blockchain platforms to consider.
Introduced in 2013, Ethereum is one of the oldest and most established blockchain platforms. It provides a truly decentralized blockchain that is comparable to the Bitcoin blockchain network. The Ethereum platform is seeing widespread adoption by technologists who build decentralized applications, or dApps, on the Ethereum network.
2. IBM Blockchain
IBM Blockchain is a private, decentralized blockchain network that has been the most successful with enterprise clients who are less risk-averse, Manders said. He has seen the biggest opportunities in using it to link into enterprise cloud and legacy technologies more seamlessly than is possible in other decentralized networks.
3. Hyperledger Fabric
Hyperledger Fabric is a set of tools that helps create blockchain applications. Championed by the Linux Foundation, it was built from the ground up with enterprise distributed ledger uses in mind.
4. Hyperledger Sawtooth
Another open-source blockchain initiative hosted by Hyperledger and the Linux Foundation, Hyperledger Sawtooth uses a novel consensus mechanism called proof of elapsed time that can integrate with hardware-based security technologies to enable “trusted execution environments” of program code to run in secure enclaves, which are protected areas of computer memory.
The EOSIO blockchain platform was first launched as an open source project in 2018. It’s optimized for developing decentralized applications and smart contracts. It uses a complex consensus mechanism based on PoS that provides better performance than older mechanisms, such as Ethereum, according to its proponents.
Stellar is a newer blockchain platform optimized for various kinds of DeFi applications. It uses Stellar Consensus Protocol, which purportedly can speed the time required to process and finalize transactions on a public blockchain network.
7. R3 Corda
The platform is partially decentralized, with each node maintaining its own copy of the ledger, which helps to ensure resilience to attacks and provide transparency. Corda is also highly scalable, with the ability to handle large volumes of transactions and data.
Tezos is using a unique self-amending protocol and formal verification to minimize the risk of bugs and vulnerabilities. Tezos is also decentralized, operating on a Proof-of-Stake consensus mechanism, which prevents a single point of control. Tezos is scalable, interoperable, and has a transparent and democratic governance structure that allows stakeholders to propose and vote on changes to the protocol.
As blockchain technology continues to mature and advance, we are seeing more improvements in not only cryptocurrency but also in a variety of business applications such as smart contracts and automated tracking and policy enforcement. The impact of blockchain is likely to have a greater impact on business and society than most people realize.