2023 Blockchain Forecast – CoinGeek
This post originally appeared on The BSV Blockchain Gazette on LinkedIn and we have republished with permission from the author.
Global Public Policy Director Bryan Daugherty comes to you from the US with his forecast for the blockchain industry in 2023.
1. The emergence of problem-specific, tailor-made web3 solutions
For example Sentinel Node, Ticketmint, Cannatrack, UNISOT, Tokenized, TonicPow
The promises of a new infrastructure for enterprise data management and revenue generation will begin to be realized. Applications designed to solve industry-specific problems, such as fraudulent ticketing or file integrity assurance, will begin to enter the market.
After courts and regulators have removed many bad actors from the cryptocasino, scalable blockchain technology will emerge as the winner and businesses begin to adopt its multitude of functions and features.
This broad integration across industries will create improvements in efficiency, data integrity and cost. Some examples apart from those listed above may include supply chain management, cross border money transfers, property titles and many more.
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2. Consumer protection-inspired regulation
Mass closures of digital currency-focused business models including exchanges
Due to the combination of tighter regulations, regulatory oversight, a restrictive financial global economy, and widespread exit fraud and hacks, questionable exchanges and unregulated platforms are likely to be investigated and in turn shut down.
Many policymakers have made it clear that the Howey test applies to “crypto-tokens,” and existing projects may find themselves having to answer some relevant legal questions.
There may be further focus on questionable contributions to political figures from digital currency exchanges, influencers and entrepreneurs.
3. Wider interest and testing of companies
The discovery stage of public blockchain utility-driven applications and services.
While there has been wider acceptance of digital currencies by both retail consumers and business organizations to date, there will be a greater use of blockchain technology to solve real-world problems. Many applications will emerge to abstract the complexity of the blockchain to provide simple fiat-enabled gateways to the technology.
4. More investigative research
Researchers, universities and government bodies are looking at the security and efficiency of scalable blockchain consensus models.
More investigative research will be encouraged by government bodies, universities and scientific organizations on the safety and effectiveness of proof of work versus other consensus models.
Motivated by long-term sustainability and out of a concern for high energy utilization and carbon emissions, researchers will discover that the Blockchain Trilemma is a broken theory and that scalable proof-of-work consensus mechanisms can provide the necessary balance between decentralization, security, and scalability.
5. Integration of other new technologies
Smart devices, sensors, IoT, IPv6, RFID, AI and platforms that connect them
Growth in Agritech and smart farming, smart cities and the smart energy industry will provide blockchain with an opportunity to empower real-time, secure, immutable, time-stamped machine-to-machine data and value transfer.
Upcoming legislation like the Farm Bill could include more pro-blockchain language and sandboxes to begin testing these technologies in the field.
6. More clarification from supervisory bodies
Applicability of applicable proprietary rights and securities laws to blockchain and digital assets.
Blockchain gives both physical and digital property owners the opportunity to register a verifiable attestation of property rights on the blockchain. This can provide proof of ownership, access to virtual goods, or a legal “proof of ownership” of physical property, such as a concert ticket, car, land title, rare painting, gold bar, etc.
This is in stark contrast to the many “rare” NFTs sold during the recent “APE NFT” jpeg image craze, which provided no benefit or value to the buyer.
7. Greater access to blockchain curriculum
Education, courses and university student engagement
There is a thirst for more meaningful blockchain education worldwide. Young students and developers seek knowledge and tools to build applications that provide solutions and enable innovation.
By providing access to developer resources, students and entrepreneurs can begin to innovate and explore the utility and possibilities of an unlimited blockchain. From these investigations, solutions will emerge to overcome problems that have plagued companies for many years.
8. Financial inclusion
Developing countries find more flexible adoption and integration in the digital economy
Countries with sound economic practices that are relatively debt-free and open to innovation will begin to jump on the technology ladder by adopting scalable blockchain solutions. Through the use of microloans, decentralized financial services, content monetization, micropayments and other blockchain innovations, developing countries will more quickly realize opportunities within the global market while bypassing the need for certain previously legacy technologies.
9. Goods and services
Several real-world goods and services can be exchanged for digital tokens
For the value of a blockchain network to be realized without the frictions of legacy infrastructure, markets will begin to emerge that use tokenized goods as mediums of exchange, in addition to using other blockchain-powered financial instruments for efficient transactions.
This will lead to more thriving local, regional and international digital economies as well as reduce processing and intermediary fees.
10. Transactional entrepreneurship
Modern transaction processors are starting to emerge to take advantage of the idea of recurring revenue
With the introduction of trusted smart contract business schemes, a next-generation sales model will emerge. This transactional entrepreneurialism will enable businesses to offer incentivization of sales through recurring monetization of blockchain-based forced payment distribution and accounting, based on sales made and customer subscriptions.
Additional considerations
With the continued fallout and crumbling of the unregulated cryptocasino markets, as exemplified by the unfortunate recent dissolution of the FTX exchange, we will most likely see an acceleration of investment towards applications that harness the true value of the underlying blockchain technology.
Similarly, we may see overzealous regulators continue to conflate digital currency and blockchain, stifling innovation in these important areas of data integrity and efficiency.
States are just now beginning to take a sandbox approach to legislation within the digital currency and blockchain landscape.
I expect that many of these states will welcome blockchain, while others will tend to focus on digital currency regulation. This creates a comparative shift in regional economic opportunities and varying state-by-state advances in technological innovations.
A common sense approach to blockchain legislation
Technology and innovation are often seen as the most important drivers for a country as well as an organization’s next phase of economic growth.
As we rapidly transition from the era of big data to a global data-driven economy, the debate over the security, stability and sustainability of blockchain technologies has once again taken center stage – this time in the halls of decision makers (many of whom are just beginning their journey for to navigate this complex, typically ‘tribal’ industry.)
This article has been lightly edited for clarity.
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