Upcoming trends in blockchain technology
By Vipin Vindal
Introduction
Over time, blockchain technology has been recognized for its ability to disrupt or revolutionize multiple industries through transparent and secure data, storage and transfer of assets. It is used in a variety of applications including financial services, healthcare, supply chain management as well as government. As the technology continues to evolve, the coming years are expected to usher in new trends and innovations for the blockchain industry.
Some of the trends expected to dominate the blockchain sector in the coming year are explained in the sections below:
- Increased use of blockchain by businesses
The first and most significant trend that is expected to dominate the sector is an increased use of blockchain by most enterprises.
Regulatory bodies and governments worldwide have begun to explore blockchain for its secure and transparent tracking. So it is highly likely that we will see further use of the technology in this domain in the near future.
- Private blockchain adoption will see an increase
While public blockchains are on the rise, going forward we will witness an increase in the adoption of private blockchains. This will give organizations more control over existing corporate data while maintaining the ability to validate and verify transactions. Now, since private blockchains have fewer nodes than their public counterparts, they can scale much faster and have higher transactions throughout. That can make them more convenient for specific use cases, such as supply chain management or cross-border payments.
- Asset Tokenization will witness an increase
It is expected that certain industries such as healthcare and finance may choose private blockchains in the coming years due to the need for increased privacy and security.
Tokenization powered by blockchain allows businesses and retail users to convert assets including real estate portfolios and artworks into digital tokens. This increases the liquidity of otherwise illiquid assets, allowing owners to sell tokens through secondary markets. This improves investors’ access to previously unavailable assets and provides opportunities for portfolio diversification. Furthermore, smart contracts automate token transactions and increase transaction transparency, offering a single source of truth. Consequently, tokenization enables all stakeholders to verify their holdings and ensure fair practices.
- The emergence of several blockchain-based cryptocurrencies
While bitcoin happens to be the most popular cryptocurrency for many years now, we can expect more blockchain-based cryptocurrencies to emerge in 2023. As of November 2022, there are more than 20,000 types of cryptocurrencies. These new assets are likely to provide better liquidity and offer investors more opportunities to diversify their portfolio across multiple blockchain-based currencies.
- Public sectors to implement blockchain
The public sector is also equipped to implement blockchain in 2023 to ensure better functioning of sectors and industries. Now blockchain is a network of secure and non-malleable data intertwined as a public ledger. So it is absolutely right to incorporate this breakthrough into government processes. Sometimes government agencies spend a lot of time using old-fashioned systems to perform tedious tasks. As we enter 2023, governments around the world should begin looking at blockchain technology to expand its prominence. We can expect governments to use blockchain for a variety of applications.
- The Rise of Private Blockchain and Blockchain Security
Going forward, 2023 will also witness the rise of private blockchain and blockchain security. Private blockchains are those that are mainly owned by businesses and organizations. Private blockchains have centralized authorities that determine users’ accessibility to the networks. Also, each node in private blockchains has a copy of the entire blockchain, and the owner can reverse or delete transactions. This enables companies to gain better control over company data.
The start of blockchain security is something the sector will see in 2023. Blockchain’s primary applications are found in investment vehicles and financial transactions. Blockchain’s primary applications happen to be in financial transactions and as investment vehicles. Furthermore, privacy and data integrity are critical to all blockchain networks as organizations and users transition to more blockchain-centric workflows. To ensure the security of such networks, develop blockchain security solutions. They implement advanced analytics and artificial intelligence to monitor smart contracts as well as transactions to identify anomalies.
The last words
The above trends indicate that blockchain as a technology is not only here to stay, but is also growing by leaps and bounds. With its development and breakthroughs, this technology will continue to become an integral part of our lives.
The author is CEO, Quarks Technosoft
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