The blockchain technology space is here to transform businesses, industries, and entrepreneurs all over the globe.
Yes, it’s a new form of the internet built on the trust between peers rather than big institutions. By removing the third parties, blockchain technology offers a new and safer way to transact and store data without a central authority.
Due to its revolutionary benefits, businesses always remain curious to discover more about its future and entire ecosystem. If you are among them, I have come up with remarkable blockchain trends in 2023. So, let us begin with the basics.
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Blockchain – A Trustless Network!
“The old question ‘Is it in the database?’ will be replaced by ‘Is it on the blockchain?” – William Mougayar
Blockchain allows secure peer-to-peer transfer of digital assets between two parties without a third party. It is simply a database that you can use for all sorts of applications involving storing or transferring data/information. Experts suggest that building the entire business model on the blockchain is possible.
Interesting Blockchain Statistics
- By 2023, global spending on blockchain will reach $11.7B.
- The worldwide blockchain market will collect $20B in revenue by 2024.
- Blockchain can lower 30% of banks’ infrastructure expenses.
- Financial organizations can save around $12B per year with blockchain.
- Total spending on incorporating blockchain technology into healthcare will increase to $5.61 billion by 2025.
7 Future Blockchain Trends To Watch Out For in 2023
“Blockchain technology isn’t just a more efficient way to settle securities. It will fundamentally change market structures, and maybe even the architecture of the Internet itself.”- Abigail Johnson
Yes, I agree entirely with the statement above. However, it would be interesting to note how it will change the current scenario. For now, here are 7 upcoming blockchain trends to watch for in 2023:
#1. The Expansion of NFTs (Non-Fungible Tokens)
NFTs are tokens that, unlike cryptocurrencies like Bitcoin, are fungible, meaning they are interchangeable with other instances of the same token.
This means if you send someone 1 BTC or 0.5 BTC, it doesn’t matter because they are both the same type of thing – one BTC.
It is impossible to replace or substitute NFTs with other tokens, making them unique to each digital asset. This has enormous implications on the future of blockchain technology and its use for all sorts of use cases.
Everything is on the verge of transforming from tracking assets to personal identification to provenance documentation and certification.
Besides, it means that digital asset ownership could be proved more efficiently on a blockchain system because they are linked to their unique, individual identity.
#2. Blockchain in Vaccine Manufacture and Tracking
There is a high need to track vaccines right through the entire supply chain so businesses can quickly identify them in case of recalls or malfunctions. One example is Norovirus vaccines used for people carrying the virus, such as military personnel.
Keeping such vaccines at precise temperatures throughout their manufacture, shipping, and storage is essential to remain effective.
Industries can use blockchain to track vaccines right through their entire supply chain – making them safer and more effective. While this is not a huge issue today, we will likely see a greater need for vaccines as the world population increases. This means that blockchain will have a massive demand in the future.
#3. Blockchain and IoT Integration
As the world becomes increasingly linked through the Internet of Things, we will likely see blockchain and IoT integration becoming more popular. This is mainly as we move towards a world where everything is interconnected. Blockchain could provide transparency and security for data which helps users connect in better and more innovative ways than ever before.
With blockchain, businesses can authenticate devices on the IoT and verify transactions between users and machines. Plus, it provides data privacy, which will become increasingly important as more people begin using blockchain-powered devices.
#4. More Nations Adopt Bitcoin and National Cryptocurrencies
While some countries like China have banned their national cryptocurrency, many other countries appear warmer towards this technology.
Japan is one country that has adopted Bitcoin as a legal payment method. This means the trend could continue in the next few years leading to more widespread adoption of cryptocurrencies.
#5. The Rise of Distributed Apps (DApps)
Dapps run on decentralized networks, which means they offer greater transparency and security for users. Many of these apps are likely to run on blockchain networks which means they could provide better protection than standard mobile apps. Besides, there is the potential that they could become more widely used in the future.
#6. Governance Will Use Blockchain Applications
According to research from Cambridge University, governments that begin using blockchain solutions will more efficiently and transparently track public expenditures. This could help reduce corruption in government institutions, making governments more trustworthy for citizens.
#7. Blockchain Will Increase Retail Adoption
Blockchain will likely become increasingly used in retail as more people realize its benefits. It has the potential to help retailers track products throughout their entire supply chain.
This could provide greater transparency for consumers who want to understand better how they are made.
#8. Big Tech Will Enhance Using BaaS
Big tech enterprises like Facebook and Google will likely begin to explore the use of blockchain within their business. According to Marketwatch, it has already been seen that Google may start using blockchain services to power downloads for Chrome.
Blockchain could help big tech companies to become more efficient, and it makes sense for them to explore the possibilities.
#9. Social Media Will Rely on Blockchain
There are currently several issues with social media platforms like data privacy, censorship, and transparency. This has led several people to seek alternatives with blockchain, offering users greater control over their content.
Blockchain solutions used by Steemit could help solve these problems while also helping to monetize free content, which could become increasingly important as social media continues to grow.
#10. Businesses Will Use Blockchain For More Advanced Financial Services
While some people are using blockchain applications to pay for things like cakes or coffee, we’ll likely see this technology used in much more advanced ways in the future.
Blockchain could help provide greater transparency for transactions, which would make them more secure. The technology could also reduce costs for financial institutions, which means they would be able to pass on these savings to customers somehow.
A Closer Look At The Industries That Will Be Reshaped By The Blockchain
“Everything will be tokenized and connected by a blockchain one day.” – Fred Ehrsam
#1. Banking and Financial Industry
Bitcoin was initially created to operate as a decentralized digital currency. However, it has many other potential applications that could shape the future of financial services.
For example, banks invest in blockchain because it offers an open and secure way to transfer money while avoiding costs associated with a payment gateway. Besides, they can use the technology to become more efficient and transparent. It might even boost user trust in the financial industry as there is no central authority.
The image below shows the use of Blockchain in banking and financial solutions market size globally in 2018 and 2019 with a projection to 2026.
#2. Business Management and Process Automation
One of blockchain’s most useful applications is the automation of business management processes. The technology could automate many aspects of human resources, accounting, insurance claims processing, and legal services.
How? Well, as mentioned before, it removes the need for third-party intermediaries to process transactions or offer services.
For example, blockchain-based smart contracts can automate insurance claims by setting payouts for specific types of claims automatically once all the terms are met. After the approval of the claim, the insurer would automatically make a payout without contacting the insured or other involved parties.
This technology is also beneficial to automate legal services by removing the need for an intermediary to review contracts and agreements before two parties sign them.
Blockchain technology could even transform voting systems. It allows voters to cast their ballots from any location in the world while ensuring that their votes are immutable and remain anonymous.
By bringing the voting system online, blockchain could make it easier for people to participate in elections without going all the way to a polling station.
A company named Follow My Vote is already using it. They allow shareholders to cast their votes online during shareholder meetings.
#4. Supply Chain Management
The supply chain management industry would see a positive change with the rise of blockchain technology.
If you have been involved in business or e-commerce, you know how time-consuming and complicated the typical supply chain process is. Blockchain technology will add transparency to all aspects of a product’s journey, from raw materials to production to delivery. As a result, you will get a more reliable and trustworthy product.
The companies involved in the supply chain can use blockchain to track its progress through the system. For example, provenance uses blockchain to enable consumers to determine the origin of their food products.
By using this technology, manufacturers or retailers get access to a comprehensive list of data points such as:
- From where the raw materials were sourced
- When they started using a particular supplier
- Which processor mixed certain ingredients
- Whether any allergens are present in their meals or snacks
One of the biggest problems insurance companies face is that they have trouble verifying whether or not a claim is genuine. For example, if an accident occurs, the driver might say that another vehicle forced him into a barrier, but he might just be trying to get out of paying for the costs involved.
By using blockchain technology to verify claims, insurance companies would have a far better idea of whether or not their clients are telling the truth about what actually happened during an accident. This would reduce fraud cases and speed up the claims process, as customers wouldn’t have to submit as much personal information to receive their payouts.
#6. Education & Academia
The way information is shared between institutions and organizations needs to change. We cannot keep up with the vast amount of data about specific topics and disciplines. This can make it difficult for people to understand different subjects because they don’t know where to start looking for information.
Blockchain technology could solve this problem by creating a decentralized database of research and information. Instead of relying on one or two sources for information, we could all benefit from the rapid sharing of data within sectors and disciplines.
This would make it much easier for researchers and academics to keep up with the latest developments in their fields, which would speed up the process of research and development overall.
Challenges of Blockchain & How To Prepare for Greater Success
Blockchain technology has the potential to change our world for the better. However, there are also many challenges involved with this new system. So, companies and individuals would be wise to prepare themselves for these inevitable obstacles.
Challenge 1 – Blockchain Safety is Still a Topic of Concern for Businesses!
Blockchain is a new technology, and not many people fully understand how it works. This means that the idea of hackers creating fake transactions to steal cryptocurrency (such as Bitcoin) is still very much alive. The only way to solve this problem is to learn more about blockchain.
Businesses can overcome this challenge by keeping updated with the latest technology trends and their usage in business settings.
Challenge 2 – Blockchain is a Distributed System of Record!
Another challenge you’ll have to overcome when using blockchain technology is a distributed record system with no central database. This means that communities and businesses who want to benefit from this technology will need to learn to share information securely without putting their data at risk of being lost or stolen.
You can do this by exploring how to safely share data in a decentralized manner through blockchain technology, either with other companies or communities of individual users.
Challenge 3 – Blockchain Technology is Still Maturing!
Blockchain technology is still maturing, implying that you might run into bugs in the system or encounter other issues. It is crucial to this issue before blockchain becomes a mainstream technology like today’s internet.
To overcome this challenge, keep up to date with new products and enhancements in blockchain technology (by following blockchain blogs). Besides, you can learn how to troubleshoot the system when problems arise.
Challenge 4 – Blockchain is an Abstract Concept!
Most people still don’t understand blockchain technology and how it works. Hence, they might not trust the system enough to use it for storing data, generating income, sharing information securely, or making!
For this, you can learn more about blockchain from an educational standpoint and through hands-on experience with the technology system.
Challenge 5 – There are Many Issues With Blockchain’s Current Usability!
Finally, another challenge you’ll have to overcome when using blockchain technology is that it has many usability issues right now. This means that the system probably won’t work effectively for your specific use case because some big problems still need to be addressed in making blockchain mainstream.
It is possible to tackle this issue by continually updating blockchain technology and learning how it could best be used for your business or other purposes. This may require a team of developers working on the problem over a long period.
Conclusion: Blockchain has a Bright Future Ahead!
The future of blockchain technology is, undoubtedly, bright. And by overcoming the challenges associated with it, more individuals and businesses can join this growing community and share its benefits. So prepare yourself for a successful journey!
To reap the benefits of blockchain technology, hiring a trusted blockchain development company is suggested. They can help you with your project from beginning to end.
Also read: Pros and Cons of Blockchain Technology
Frequently Asked Questions!
What is Blockchain?
Blockchain technology, simply put, is an open-source digital ledger that contains data records that are constantly being validated. It has no central point of failure because it’s decentralized and distributed among the public for convenience while still operating as a secure system. All information in the blockchain can be traced along its address to recreate the entire chain.
Would I Need Blockchain Development Services?
Blockchain technology could be helpful to you. If you want to store data safely, generate income with low fees, share information securely, or make transactions regularly over the internet. Otherwise, you may need blockchain development services to help create a product that utilizes its benefits.
When is the Right Time for Your Business to Use Blockchain Technology?
Your business should use blockchain technology before it becomes mainstream because the demand will grow exponentially. So, prepare yourself by researching how you can adapt to this change.
Is Blockchain Safe?
Blockchain’s security system ensures that everything on its network remains safe and secure at all times (given that it is used correctly). It also provides that there’s no central point of failure.
How Does Blockchain Work?
Blockchain technology works by using a peer-to-peer network to store information and run as a secure system. The data on the blockchain is stored as blocks, which are made within a brief period. Thus, you can access its history for verification purposes at any time.