4 blockchain trends you should keep an eye on in 2023 and beyond

Blockchain has been at the heart of the hottest trends in the digital space in recent years, with digital currencies and NFTs gaining a lot of attention from investors and significant media exposure. While Nakamoto, the creator of Bitcoin, has received credits for the blockchain, the digital ledger has an older history, as the concept was first introduced in 1982: 27 years before the world heard of the first cryptocurrency. Blockchain is mainly praised for its great qualities regarding transactions. This is because it provides investors an appealing way of making potential profits by investing in assets like Bitcoin, Ethereum, etc., which can be traded on crypto exchanges like Binance. 

At this point, it’s evident that this incredible technology is here to stay. Not only that, but it may even underpin the next phase of the Internet.  According to Statista, blockchain awaits substantial investment in the future, with companies from different industries actively contributing to the blockchain sector, including banking, healthcare, and business. Let’s explore what lies ahead for this incredible technology in 2023.

NFT Boom

NFTs, or non-fungible tokens, have grown in popularity in 2021 and will likely stay as relevant in the years to come. Unlike other cryptos, NFTs are unique and can’t be replicated, so they are suitable for selling digital assets. Due to this incredible quality, NFTs have become a popular means for artists to generate revenue. According to research, by 2030, NFTs and metaverse gaming could translate into a $ 56 billion revenue opportunity only for the luxury market.

While it is true that there are concerns regarding the environmental impact of NFTs, it’s hard to overlook their potential for enhancing digital commerce. As more businesses experiment with NFTs, the applications of this transformative technology will likely grow, reshaping modern commerce. Hence, savvy companies should keep an eye on the booming NFT space, as exciting opportunities will likely arise in the next few years.  

Blockchain in ESG initiatives

In today’s world, when sustainability is paramount for business strategy, blockchain has the power to drive significant change. Due to its decentralized nature and transparency, the digital ledger is a great tool for supporting ESG initiatives. For instance, some companies take advantage of blockchain to verify their supply chains’ sustainability. Hence, it becomes easier to trace raw materials’ origin and monitor the environmental impact of business operations. This allows ventures to keep their activities aligned with their ESG goals.

Blockchain also makes a difference in social impact investing, as its transparency allows investors and donors to ensure their contributions are used correctly, thus supporting accountability. Moreover, the blockchain is growing as an eco-friendly technology, aiming to reduce its carbon footprint. Over the years, the technology has received harsh criticism for its significant energy consumption, so this is a huge step for the blockchain industry that will likely drive further adoption and growth.

Blockchain for better cybersecurity

In a world where technology has become part of everyone’s lives, cybersecurity has never been more important than now. Businesses deal with sensitive data, including personal identification information and financial transactions, making it crucial to safeguard it. Thanks to the blockchain, they can now benefit from great solutions to this end, enhancing their digital infrastructure’s security. The digital ledger has an encrypted architecture, making it incredibly challenging for bad actors to manipulate the data within the blocks. Blockchain can also help mitigate fraud and identity theft risks by utilizing decentralized, solid identity verification systems.

Moreover, blockchain’s effectiveness in cybersecurity goes beyond data protection. For instance, smart contracts enable the automation of network security protocols. This plays a crucial role in decreasing human error, which is often the cause of security breaches. While blockchain can indeed improve cybersecurity, that doesn’t make it a silver bullet, so for increased effectiveness, it should be used with other strategies.

DeFi evolution

While blockchain was first associated with cryptocurrencies, the technology has expanded beyond the industry of digital assets. Decentralized finance, also known as DeFi, is a promising application of the blockchain, enabling transaction completion without the intervention of a middleman. Established financial institutions are taking advantage of blockchain for fractionalizing assets, changing how they are tracked and improving real-time transactions.

From 2022 to 2023, investments in DeFi have only increased, and the industry is forecasted to grow even further by 2030, achieving $231.19 billion. These figures highlight that the future of assets is indeed digital, with the blockchain significantly impacting its evolution. There are many exciting DeFi trends to keep an eye on this year, including developments in derivatives, DeFi scaling solutions like Cosmos app chains and L2 rollups, and a growing interest in non-custodial dApps, to name just a few.

Is blockchain the future?

There has been a hot debate regarding blockchain’s future, with some perceiving it as a revolutionary technology and believing it will shape the future of finance and improve many other sectors. On the other hand, others have deemed it as just another fleeting trend, which raises the question: “which of the parties is right?” Considering blockchain’s features and its evident impact on industries, it’s safe to say that blockchain is more than just a trend that everyone will forget about sooner or later. The technology has great potential, and despite all the roadblocks, it’s within its power to rework the finance sector by reducing costs. Moreover, blockchain solves inefficiencies in commercial real estate and makes a significant difference in healthcare and supply chains.

Last year may have been harsh for the crypto industry, but that doesn’t make blockchain’s future less bright. As it keeps maturing, the technology is poised to redefine business operations, improving cybersecurity and transparency and providing ventures with new models and revenue streams through the non-fungible tokens. However, different challenges must be addressed to use blockchain responsibly. For instance, there is still a need for regulatory clarity when it comes to blockchain and cryptocurrency. Nevertheless, it is clear that blockchain provides a wealth of opportunities, as evidenced by the trends discussed above.

Hence, businesses that want to remain innovative should stay up-to-date with the latest trends in the blockchain sector, so they can leverage this technology's numerous advantages.