In its earliest days, blockchain was almost synonymous with cryptocurrency. But that’s no longer case. Markets and Markets predicts the blockchain market, valued at $7.4 billion in 2022, will grow to over $94 billion by the end of 2027, growth of an astronomical 66.2 percent CAGR. And driving that growth are blockchain trends — beyond cryptocurrency — in a variety of use cases in banking and financial services, retail, ecommerce, government, and more.
A Blockchain Refresher
To understand what’s driving blockchain trends, recall its unique characteristics and capabilities. First, it’s decentralized. A blockchain doesn’t run on one computer or server. It runs on a network of computers, eliminating a single point of failure (or attack). Additionally, all of the “blocks” in the blockchain are linked and protected by cryptography, and each block contains all of the previous blocks, a timestamp, and other data related to the change. So, a block cannot be changed without the network seeing it, creating an immutable record and a secure way to carry out transactions.
Blockchain also offers businesses and organizations several significant benefits, including time and cost savings. It’s not necessary to have intermediary handle contracts or have a bank or lender verify transactions. The blockchain, by its nature, can securely manage the exchange of funds or execute other agreements and eliminate fraud.
dApps: the Software that Runs on Blockchains
To give users a way to take advantage of blockchain technology, more developers are creating dApps. In fact, the dApp space saw a 50 percent increase in 2022 over 2021.
These software programs run on a blockchain and offer a range of benefits, such as flexibility and security. dApps can also give users capabilities that other apps can’t, for example, preventing censorship. For example, a social media dApp could allow users to post messages, and no one, including the dApp creators, could delete them.
dApps can be developed for a wide range of other uses, such as self-executing contracts, verifying voter identity, and securing nonprofit donations. dApps also have the potential to track the movement of goods in the supply chain, streamline buying and selling real estate, and securely manage health records.
The Blockchain Operating System (BOS)
Another advance in the blockchain space is the launch of the Blockchain Operating System. The Near Foundation has taken up the challenge and now provides a layer for browsing and web experiences that are compatible with blockchains. Near says BOS will become the entry point for the Open Web and make Web3 easier to navigate.
Members of the Open Web ecosystem can develop their own frontends that work with the blockchain they choose to create new Web3 experiences. Near has launched alpha.near.org for developers and end users to explore new options.
Growing Blockchain Trends
As the number of blockchain tools increases, businesses and organizations are piloting or implementing blockchain solutions for a variety of uses, for example:
-
-
- International Trade
-
Blockchain solutions simplify licenses and certificates necessary for trade, eliminate the need for third parties to manage exports and imports, and increases the speed of transactions.
Blockchain can also create a record of shipments, ensure product authenticity, and provide an accurate chain of custody, which can give track-and-trace capabilities to consumers.
-
-
- Decentralized Banking
-
Using blockchain, consumers can hold money in a secure digital wallet and manage transactions using smart contracts instead of using banks and paying fees for bank services. As a result, this blockchain trend has the potential to change the banking industry.
-
-
- Metaverse
-
The metaverse will connect virtual worlds and user engagements. Blockchain can protect user data by developing decentralized metaverse platforms, secure interactions with decentralized ledgers and smart contracts, and provide proof of ownership of NFTs and other virtual assets.
-
-
- IoT Security
-
Not all blockchain trends are new capabilities. Some solve long-time problems. For example, Internet of Things networks with thousands of connected devices are attractive targets for cyberattacks. Blockchain can secure IoT with immutable records and no single point of failure.
What’s Next for Blockchain?
Although blockchain is a new technology, innovators are making strides to bring value to businesses, organizations, and consumers with new systems, platforms, and applications. However, there is a lack of skilled blockchain developers and growing demand for solutions. Are you ready to play a role in how blockchain solutions will evolve and take new solutions to market?
