Blockchain has been named a” revolutionary” technology of modern society, one that can disrupt industries and change how people share information and money. It’s been more than a decade since its debut along with Bitcoin’s launch, and blockchain is still evolving, bringing radical transformation and creating new business models in certain industries. It’s probably not surprising to hear this, given that 2024 also seems bright for the crypto sector, with events like the Bitcoin halving generating enthusiasm among investors. According to data from binance, Bitcoin’s performance has been really outstanding, and since you can easily buy it in a few steps, it wouldn’t be surprising to see more investors jumping on the crypto bandwagon if the market sentiment continues to be positive.
But it’s not just crypto that’s worth the attention – blockchain also deserves it, because its pace of innovation never ceases to stun. The technology has some pretty exciting developments for 2024 and the ensuing years, so if you’re interested in learning about them, keep reading.
Increased interoperability
Starting with 2024, blockchain interoperability protocols will be more advanced, marking a significant shift by creating a more efficient and unified blockchain. Simply put, interoperability is about the capacity of various blockchain systems to exchange digital assets, messages, and data. Thus, interoperability is critical to blockchain’s functioning, but specific challenges must be overcome. However, the developments in this area for 2024 are exciting, increasing innovation and fostering new use cases.
The future of interoperability looks bright, with industry experts predicting that interoperability will be a standard feature instead of a challenge to overcome. By breaking down current silos between various blockchains, sharing data will become a more seamless process, facilitating creativity and smooth communication.
The emergence of blockchain as a complementary tech to AI
2023 was primarily dedicated to proof-of-concept development, but blockchain technology will live up to its great potential this year, marking a period of commercial improvement across sectors, along with generative AI. While generative AI is incredible and has been creating many exciting opportunities, AI hallucinations are an issue that hinders its potential. They emerge all the time, and it’s difficult to understand and correct their roots.
That’s where blockchain comes to the rescue, providing a tamper-proof and budget-friendly way to inject visibility and solve the problems that AI systems encounter. In 2024, more businesses will likely grasp the importance of blockchain, with the technology becoming the guardrail that AI didn’t have so far. This will result in more innovation, allowing for more responsible AI standards.
Growth of DeFi
Decentralized finance has created tremendous possibilities, such as decentralized trading, instant loans, and P2P lending. In 2024, its applications are expected to see significant growth in mainstream adoption, with factors like enhanced transparency and more robust security measures bolstering legitimacy and user trust. According to Statista, revenue in the DeFi market is estimated at a value of US$26,170.0m this year.
2024 could also be the year when DeFi makes critical banking services more equitable, making them accessible to the unbanked and underbanked populations. Moreover, it could allow smaller developing nations to gain financial infrastructure without requiring a costly physical banking presence. Overall, DeFi holds massive potential to expand financial inclusion considerably.
Increased enterprise investments
Although the cryptocurrency sector has faced turmoil, enterprise executives are still paying attention to blockchain technology. They are exploring the technology’s potential to help them meet various business needs, from supply chain management and smart contracts to identity and access management, and document management and verification.
Some organizations are still experimenting with blockchain, and those outside the financial sector, in particular, still aren’t convinced why they should replace their current systems with those built with blockchain. However, the enterprise use of blockchain is expected to accelerate once software vendors use the technology to create or boost products that help companies considerably. In other words, vendors need to demonstrate why blockchain-based solutions are better for businesses to see increased adoption of the technology take off. However, in some areas, enterprise executives are already benefiting from blockchain’s uses. For example, they are using the technology for compliance, especially in the ESG area. Or, they rely on the blockchain as a way to create more transparency in their supply chain processes (for instance, tracking the provenance of raw materials to ensure they come from acceptable regions).
NFT’s potential for businesses
While business owners may not yet understand the value of blockchain for improving various business processes, many companies are embracing the technology for the online token-based economy. More precisely, they are using NFTs to generate new revenue streams. NFTs, or non-fungible tokens, are nothing new, but they were stuck in an individual role for a while. This year, this seems to be changing, with NFTs expected to offer more utilities than intellectual property ownership and branded merchandise.
NFTs are likely to achieve real-world value, penetrating big industries like real estate and precious metals. The NFT market is estimated to become a $56 billion revenue opportunity by 2030 – and that’s only for the luxury market. It’s a quite staggering statistic, so it only makes sense for businesses to keep an eye on this technology. As more enterprises test new use cases, NFTs have the potential to transform how people engage and record digital rights’ transfer – and this is an advancement that can redefine the nature of modern commerce.
Takeaway
2024 will trigger an era of maturity for the blockchain sector, bringing many exciting trends worth keeping an eye on. More industries will likely become open to embracing this technology as they realize its potential in boosting transparency, improving collaboration, and ensuring higher security.
Looking ahead, blockchain seems only to climb higher, and in the following decades, it won’t be surprising to see it making a big revolution – one that all enthusiasts have long been waiting for. Although no one can predict what the future can bring, one thing is clear: blockchain is shaping the digital economy, and businesses that want to position themselves for success should align with these trends.