Experts around the world have heralded 2023 and 2024 as the years of the large-scale breakthrough of blockchain, with the technology expected to accelerate its adoption and market size. Experts from consulting firm Agile Dynamics shed light on some of the top trends driving blockchain’s growth.Blockchain interoperability
Blockchain interoperability refers to the ability to share information across different systems, making them more practical and efficient. Since no single platform can address all blockchain needs, developers can create powerful multi-channel solutions by leveraging the capabilities of different networks.
Some platforms are already working on such communication, with Blocknet being an example of a solution that effectively connects nodes from different networks.
Security tokens
The initial coin offering (ICO) concept was criticized for its perceived lack of real value and uncertain regulations, leading to limited profit potential for many investors accustomed to the more established IPO market. Given the potential for market manipulation and limited liquidity, cryptocurrency is often viewed as a short-term investment.
To address these issues, security tokens were introduced. These tokens are based on the concept of programmable equity, which combines the benefits of blockchain with the stake principle. Unlike ICOs, they offer investors more value, such as ownership rights and passive income in the form of dividends.
As entrepreneurs are familiar with this concept, it has the potential to revolutionize the IPO business by providing greater liquidity and efficiency, combined with round-the-clock access to capital.
Blockchain-as-a-service
As the Technology-as-a-Service model gains popularity, we can anticipate a rise in the number of blockchain platforms available as well. In essence, Blockchain-as-a-Service allows customers to leverage all the best features of this technology without having to create their own platform. They can access the cloud, build apps, execute smart contracts, and take advantage of the existing well-developed infrastructure.
Several providers, including Amazon, have already begun offering BaaS, and we anticipate that more companies will enter this market. For example, a few months ago, Huawei introduced its own Blockchain Service, which allows its clients to use this technology through Huawei Cloud.
Blockchain consortia
The primary objective of a blockchain consortia is to facilitate productive collaboration among competitors. As the success of any blockchain platform is contingent on its community, involving more members can greatly enhance the relevance of shared data and improve the technical security of the network.
Blockchain consortia can focus on two main areas: business, which aims to develop and maintain platforms that address specific business problems, and technology, which focuses on creating reusable platforms based on technical standards. Some consortia, like R3, can incorporate features of both types.
Fiat-crypto exchange
The lack of regulations and government support for cryptocurrency transactions has undermined confidence in their use. Although some countries, such as China and Ecuador, are experimenting with launching their own digital currencies, most governments do not support the development of cryptocurrencies, which limits their application outside the digital world.
While fiat currencies still dominate in most countries, the most effective approach is to create a digital link between the fiat and crypto worlds. Fiat-crypto exchange is increasingly necessary across various industries that seek to expand their possibilities. Hybrid models also hold promise for real-world applications, such as land registry and the voting process.
Alternative asset tokenization
Asset tokenization involves the conversion of high-value assets, such as real estate or commodities, into tokens that can be exchanged on the blockchain.
This shift from cryptocurrency to real-based digital assets has the potential to be a game-changer for small to medium-sized enterprises, as it provides them with broader market access. By leveraging the power of blockchain technology, these companies can attract more investors and benefit from the high liquidity and transparency of exchanges.
Data marketplaces
The growing use of AI requires high-quality user data, which can be difficult to obtain. To meet this demand, communities are proposing the concept of a ‘data marketplace’, a blockchain-based platform where individuals can sell their personal data for financial gain. One of the primary principles of blockchain is that data cannot be deleted or altered from the network, making such an environment secure and eliminating risks of leaks and other privacy violations.
Decentralized ecosystems
While B2C businesses typically find it relatively easy to transition into the digital world, B2B companies may face a slower pace of digitalization. Blockchain technology can assist B2B companies by enabling the creation of complex ecosystems, such as B2B2C, using smart contracts. This can facilitate efficient peer-to-peer transactions and allow competitors to collaborate and construct new business models.
Such systems require the creation of a business governance model that guarantees equal rights for all ecosystem players to prevent monopolization.
Blockchain IoT technology
Internet of Things (IoT) technology still faces security and data assurance challenges. Blockchain technology can help overcome these issues by establishing a secure framework for data exchange between IoT devices. Furthermore, an IoT-enabled blockchain can enhance consumer data management by giving users more control over the information they share.
