If you’re up to date with the latest digital technologies, it’s unlikely that you haven’t heard about blockchain until now. Bitcoin is a classic blockchain example, followed by Ethereum, which constantly improves. While the eth price usd isn’t at its peak, crypto enthusiasts still find it valuable, and this isn’t likely to change anytime soon, considering the future upgrades expected in the Ethereum ecosystem. However, far more networks are available besides these well-renowned cryptos, and they also have impressive features.
While the lack of regulation still poses issues, developers are looking for solutions in this regard to create more possibilities for its real-world application. Blockchain technology is promising, as it brings opportunities to investors and companies operating in different sectors, such as healthcare and real estate. As blockchain continues to develop, more trends will dominate the industry, increasing security and productivity. Let’s explore these trends together!
Stablecoins
These tokens seek to combat the issues regarding cryptos’ volatility, merging the benefits of digital assets (such as security, transparency and privacy) with the stability and trustworthiness of fiat money. What’s great about these currencies is that market conditions don’t affect them (as they are backed by fiat money), meaning their price remains stable. Stablecoins can be divided into different categories, such as:
- Fiat-collateralized;
- Crypto-collateralized;
- Commodity-collateralized;
- Non-collateralized.
Different famous currencies are now available, such as Tether; however, it is worth noting that these systems aren’t perfect, and they come with a downside, as they are centralized, making them less trustworthy for investors.
Security tokens
Several concerns regarding the ICO process caused a slowdown in the token market’s utility. For instance, many have criticized the ICO concept due to the lack of real value. Moreover, uncertain regulations have also led to limited profit potential for investors in the IPO market. Considering the limited liquidity of the market, many view crypto as a short-term investment. This is where security tokens come to the rescue by eliminating significant issues of the ICO.
Based on the concept of programmable equity, these tokens combine blockchain’s benefits with the stake principle, enabling investors to acquire more value, like passive income or ownership rights. They also have the potential to redefine the IPO business by providing more significant liquidity to entrepreneurs, as well as increased efficiency, while also enabling 24/7 capital access.
Data marketplaces
There’s been a growing application of AI, requiring quality user data which can’t be easily obtained. To this end, startups are proposing data marketplaces as the solution. These blockchain-based platforms enable individuals to sell their data, thus contributing to a more secure and transparent environment. Since blockchain doesn’t allow the data to be altered or deleted, such an environment will eliminate leak risks. Accessing commercial data safely and rapidly is pretty challenging nowadays.
However, data marketplaces enable simple and speedy data sourcing without compromising on security – which is what makes them so popular. Moreover, decentralized data marketplaces increase trust regarding transactions by connecting authentic buyers with authentic providers, boosting confidence regarding data sourcing agreements.
Interoperability
Cross-chain services are another 2023 trend worth mentioning on this list. Many current blockchain projects are successful, and more are expected to arise in the future. According to statistics, the global blockchain technology market is likely to reach $20B by 2024, showing impressive potential growth. Hence, cross-chain communication is crucial for the industry, facilitating the exchange of information across different blockchain networks.
This interoperability of the blockchain makes systems more efficient. A single platform can’t address all the needs of the blockchain; however, developers can come up with robust multi-channel solutions through several networks as they create different possibilities.
Hybrid models
There is mistrust regarding crypto transactions caused by the lack of regulations. While countries like Ecuador and China have embraced cryptocurrencies and launched their own tokens, digital currencies have limited applications because no government backs them up.
Fiat money dominates almost everywhere, so the goal is to use digital currencies to create a link between the two worlds, namely crypto and fiat. This is necessary for different industries aiming to create more possibilities. Plus, such a hybrid model also plays a role in the real-world applications of the blockchain, such as the voting process or land registry.
Decentralized ecosystem platforms
Even though B2B businesses can get involved in the online world easily, their digitalization pace is slow. Luckily, blockchain comes with an innovative solution for this issue, allowing for the development of complex systems such as B2B2C by relying on smart contracts. This ensures the efficiency of peer-to-peer transactions, enabling competitors to connect and create new business models. However, in the past years, different implementations of this concept have highlighted potential challenges. For instance, the development of a business governance model must guarantee equal rights and opportunities for all ecosystem players. This is necessary to ensure that the ecosystem won’t be monopolized and undermine the benefits of collaboration and decentralization.
Moreover, previous experiments with B2B2C ecosystems have pointed to challenges related to interoperability, user adoption, scalability, and regulatory compliance. But these challenges don’t make B2B2C any less beneficial, and ongoing experimentation and innovation will likely create better solutions in the future, allowing businesses to drive growth and competitiveness.
Environmental sustainability
Many have criticized blockchain in the past due to its significant energy consumption. However, 2023 is the year when this aspect may change as sustainability becomes a top priority. So, it is expected that more businesses will use green blockchain solutions. But blockchain’s impact will go beyond reducing energy footprints – more sustainability-focused systems may also launch, allowing for easy tracking of plastic creation or water usage.
Moreover, governments and regulators may create clear standards regarding acceptable levels of environmental impact across different industries. Such a key change wouldn’t only be beneficial for the planet but also for businesses, helping them streamline their processes.
The bottom line
Even if blockchain has faced challenges before, the technology is promising, opening new future possibilities. The trends mentioned in this article will dominate the blockchain industry in 2023, disrupting the business world and making the crypto market more trustworthy.