Since I started writing blogs on blockchain it has become a tradition for me to dedicate my yearly last blog on describing the key trends we may expect for the next year. And I am sure, 2024 will be a great year for this technology from various aspects.
As we step into the new year, we are at the point of some exciting developments that are set to revolutionize the blockchain landscape, that will be driven by a number of key trends that are shaping the technology’s future. The world will continue to witness
the maturation and integration of blockchain, and it will influence diverse sectors.
In this blog, we will explore the top blockchain trends that are expected to dominate in 2024 and should be seriously watched out for.
Growing use of existing blockchain services
Triggered by the growing maturity of blockchain technology we will see the growing adoption of existing blockchain services including smart contracts, dApps, DeFi, tokenized assets, NFTs as well as the introduction of more stable coins.
Smart Contracts
As we move into 2024, enterprises will be increasingly relying on smart contracts powered by blockchain. This not only simplifies complex processes but also reduces costs and minimizes the need for intermediaries. Smart contracts will have applications
beyond finance, including legal, real estate, and more, which will bring automation and trust to various sectors.
Decentralized Applications
As blockchain technology continues to evolve and mature, we can expect to see a surge in the development and use of decentralised applications (dApps) in 2024. These dApps may enhance flexibility and control over infrastructure. It eliminates the downtime
issues that often occur in centralized systems. They can provide decentralized solutions for finance, healthcare, supply chain management, and more.
Decentralised Finance (DeFi)
We also anticipate that Decentralised Finance (DeFi) will continue to develop and gain even more traction. One of the key drivers behind DeFi’s rapid growth is its increasing user-friendliness and accessibility. Users can now access a broad spectrum of
financial services directly from digital wallets, bypassing traditional financial intermediaries and enjoying unprecedented control over their assets.
DeFi is likely to continue evolving and expanding into various sectors, offering a broader and more advanced range of financial services next to decentralized lending, borrowing, and trading services. As the regulatory landscape becomes clearer, DeFi will
integrate more closely with traditional finance, potentially disrupting established financial systems, offering new ways to lend, borrow, trade and invest.
Asset Tokenization
The process of asset tokenization whereby real-world assets are converted into digital tokens on the blockchain will accelerate in 2024. Tokenized assets with blockchain technology can have a lot of potential. This process allows for fractional ownership
of assets and can make assets more accessible.
It can make it easier for medium and small business and for individuals to invest in assets that were initially out of reach, such as real estate, high-value art or commodities. It can also provide a more efficient, transparent, and secure platform for trading
these assets on different blockchain platforms. As a result asset tokenization may unlock liquidity and create new investment opportunities.
NFTs
Over the past year the Non-fungible Token (NFT) market has been experiencing hard times. But there are however signs that the NFT marketplace development will revive in 2024 and that the use of Non-fungible tokens may become more widespread.
Artists, musicians, writers, and even everyday individuals are capitalizing on this trend. However, the potential applications may extend far beyond art, music, fashion and gaming. NFTs would likely represent ownership and access to various real-world assets,
such as real estate, luxury goods, and intellectual property rights.
Stable Coins
We may also see the introduction of more stable coins during 2024. These can play a crucial role in the cryptocurrency space. Even in volatile situations, most stablecoins
can offer a stable platform for currency exchange in a volatile crypto market. These stable coins can also serve as reliable store of value and accounting unit, making them ideal for transactions.
Upcoming blockchain services
Another trend is the arrival of new blockchain related services such as CBDCs and BaaS.
Central Bank Digital Currencies (CBDCs)
Central Bank Digital Currencies (CBDCs) are gaining momentum globally. Central banks around the world are exploring the concept of a digital national currency, actively researching, developing, or piloting CBDC projects. By 2024, this trend will gain
a lot of traction. We may expect to see more countries to pilot or launch their CBDCs.
What sets this trend apart is the future integration of CBDCs into conventional financial systems. This integration is a game-changer, as CBDCs step into roles ranging from cross-border transactions to everyday retail payments. They are also paving the way
for innovative applications.
Blockchain-as-a-service (BaaS)
Blockchain as a Service (BaaS) is supposed to be another key blockchain trend impacting the industry in 2024. BaaS is expected to gain more traction as more businesses seek to leverage the benefits of blockchain without the complexities of managing it.
BaaS offers several benefits. This technology simplifies the adoption of blockchain to businesses. It allows customers to leverage all the best features of this technology without having to create their own platform. BaaS simplifies the process of developing
blockchain applications, eliminates the need to manage blockchain infrastructure, and allows businesses to scale their applications as needed. BaaS also allows businesses to select the most suitable blockchain protocol to meet their requirements. These platforms
also offer development tools to simplify the creation of decentralized apps, fostering innovation and scalability. Several providers, including Amazon, have already begun offering BaaS, and we anticipate that more companies will enter this market.
Solving various blockchain challenges
During 2024 we will also see accelerated activities to solve the various blockchain challenges that restrict blockchain adoption including Interoperability, Scalability, Security, Privacy and Sustainability. These challenges are increasingly being addressed
for the technology to reach its full potential.
Interoperability
Ensuring communication between existing and new blockchains will be one of the key trends in blockchain technology, as it will be vital for the broader adoption and utility of blockchain technology. By 2024, more and more blockchain initiatives will place
a higher priority on cross-chain compatibility, which will provide a more seamless transfer of assets and data between different blockchain ecosystems, breaking down silos and facilitating collaboration.
This interoperability can also allow for the execution of smart contracts that involve multiple blockchain platforms, enabling the creation of complex applications that span across multiple networks.
Scalability
In 2024, projects focused on solving scalability, like Ethereum 2.0 and Layer 2 solutions, will play a significant role in determining blockchain’s effectiveness in different applications. Amazon and Microsoft are thereby taking a proactive approach to
blockchain. Amazon Web Services (AWS) and Microsoft Azure are providing the infrastructure and tools needed to develop, deploy, and scale blockchain applications securely.
Security
As cybersecurity threats are likely to become even more sophisticated, we may expect to see a rise in the adoption of more stringent blockchain-based security procedures and guidelines to safeguard sensitive data during 2024. Enhanced security measures
will bolster trust and encourage broader adoption, particularly in sensitive sectors.
By giving users the choice to keep their data and transactions private, these solutions will strike a balance between openness and privacy guaranteeing the blockchain networks’ ongoing integrity.
Privacy
Blockchain’s ability to provide private, secure transactions will drive the adoption of privacy-focused solutions in 2024. Currently, technologists are finding ways to offer and develop advanced privacy solutions. Projects like zero-knowledge proofs and
confidential transactions will gain prominence, ensuring that personal data remains confidential. Such solutions have the potential to strike a balance between privacy and transparency, helping users to maintain the secrecy of both transactions and data.
Sustainability
Sustainability is becoming a major priority for blockchain initiatives as concerns about climate change spread around the world. Developing blockchain solutions are taking sustainability into account more and more. This has led to discussions about transitioning
from the existing high energy consuming proof of work mechanism to more energy-efficient consensus mechanisms, like “proof-of-stake.”
This trend is expected to gain more prominence in 2024, whereby a growing number of blockchain companies will focus on eco-friendly solutions, minimizing energy consumption, and reducing the environmental footprint of blockchain technology
Blockchain mergers with other technologies
Another trend we may see in 2024 is that blockchain will be increasingly merged with other technologies including Artificial Intelligence (AI), Internet of Things (IoT), Web3 and the Metaverse.
AI-Enabled Blockchain
The integration of blockchain and AI is another trend to watch. In the realm of blockchain trends for 2024, the fusion of AI and blockchain technology will take centre stage, redefining how digital transactions work and disrupting various industries.
AI can help streamline and automate processes on the blockchain, while blockchain can provide a secure and transparent platform for AI operations, ensuring that data remains unaltered and secure, which is crucial for AI-driven decisions in fields like healthcare,
finance, and autonomous vehicles.
The blockchain can provide a secure, decentralized platform for storing and sharing this data. As a result AI-powered smart contracts and decentralized applications (dApps) will become more sophisticated. This can help boost the potential of AI by allowing
access to more data and enabling the development of more sophisticated machine learning (ML) algorithms.
The integration of AI and machine learning with blockchain will lead to enhanced analytics, fraud detection, supply chain optimization, and personalized user experiences, enhancing the efficiency of digital transactions.
Blockchain IoT technology I
oT is another avenue where blockchain can make a significant impact. One of the blockchain technology trends in merging with IoT on 2024 is creating decentralized architecture and cryptographic encryption tools.
Such blockchain-based IoT systems open up new opportunities and scope of application. Internet of Things (IoT) technology still faces security and data assurance challenges. Blockchain technology can help overcome these issues by establishing a secure framework
for data exchange between IoT devices, reducing vulnerabilities to cyberattacks, fraud and unauthorized access.
Blockchain can provide a completely reliable and transparent platform for IoT devices to communicate with each other and transact. This combination drives innovation in smart cities, logistics, agriculture, healthcare, and other spheres where IoT devices
play a crucial role in data collection and automation.
Web3
During 2024 we will see a growing interaction between blockchain technology and Web3.0. Web 3.0, powered by blockchain and decentralized technologies, aims to shift control away from centralized internet giants to users and content creators. This interaction
should make the Internet more decentralized, secure, and transparent.
This trend emphasizes privacy protection, user data ownership, and the removal of intermediaries. We expect blockchain-powered social media platforms, decentralized apps (DApps), and content-sharing platforms to gain momentum as users seek alternatives that
empower them and protect their digital rights. They allow publishing and distributing content, remaining censorship-resistant, decentralized, and data-protected.
‘The Metaverse’
A new trend we will see during 2024 is the increased involvement of blockchain technology in Metaverse projects. The Metaverse is evolving to offer virtual real estate, digital fashion, global events, gaming, and other innovative models, reshaping industries.
We may expect to see more metaverse projects adopting blockchain for secure ownership records and cross-platform asset compatibility, blurring the lines between physical and virtual reality.
Blockchain-based environment for the metaverse lets build secure architecture and set rules this universe would work. It ensures a secure and transparent platform for transactions within the metaverse, enabling users to own and trade virtual assets. Blockchain
thereby enhances digital asset ownership and interoperability within various metaverse ecosystems and virtual worlds created by them and exchange content. A related trend is that Governments are urged to establish regulations to ensure responsible implementation
and equitable distribution of benefits for AI in the Metaverse.
Increased enterprise blockchain adoption
2024 is gearing up to be a pivotal year, especially when it comes to enterprise blockchain adoption. Next year, we can expect even more businesses to adopt blockchain due to its unmatched efficiency and security advantages. It’s not only a game-changer for
sectors like finance, healthcare, and supply chain management. Businesses, both big and small, are increasingly recognizing the incredible potential of blockchain technology to streamline operations and foster trust among their customers.
Finance
Blockchain is poised to be a game-changer in the financial industry sector in 2024. Major financial companies are increasingly recognising the potential of blockchain technology, embracing cryptocurrencies and digital assets, which could shape the future
of digital finance. Smaller financial institutions are now also entering the blockchain space.
Traditional banking systems are cumbersome, often riddled with inefficiencies, and vulnerable to fraud. Blockchain, with its decentralized and immutable ledger, presents a compelling solution to many of the present issues, delivering financial efficiency, slashing
costs and speeding up transactions.
But also the insurance sector shows a growing interest in blockchain. Blockchain-based insurance can provide several benefits. It can enhance security, improve transparency, streamline claim processes, and reduce fraud.
Supply chain management
Blockchain technology may revolutionise the way the movement of goods and services could be tracked real-time. In 2024, we may expect to see more companies integrating blockchain into their supply chain processes, for tracing the origins and movement of
goods by 2024. This will guarantee product authenticity, drastically lower fraud, and improve supply chain efficiency overall. This may ensure that consumers can trace the origins of the products they buy, enhancing trust and safety as well as improve overall
supply chain efficiency.
Healthcare
Blockchain trends and technology could also revolutionize the healthcare industry. In 2024, we therefor can anticipate more healthcare institutions utilizing blockchain to safeguard patient records. It provides a highly reliable and transparent platform
for managing healthcare data.
Blockchain technology can ensure appropriate data storage and processing. It can improve patient privacy, enhance data security, and streamline healthcare processes. The immutable nature of blockchain ensures that patient data remains secure and tamper-proof.
The pharmaceutical segment also needs transparency. Blockchain technology can monitor the complete lifecycle of a medication. Therefore, blockchain can verify the genuineness of medicines in pharmacies and let us forget about fake ones in the future.
eCommerce
eCommerce is increasingly involved in adopting blockchain technologies, as they improve the management of logistics and supply chains and protect sensitive customer information. This will continue during 2024. Blockchain technology could change how people
shop online. Blockchain experts are now exploring ways in which people can improve their online shopping experience.
Blockchain trends in 2024 in eCommerce are expected to focus on joining forces of AI and blockchain technology. While AI is anticipating and automating all the processes in the supply chain, blockchain makes them secure and transparent.
Government
Governments worldwide are increasingly recognizing blockchain’s potential embracing this technology in a faster speed. This trend will continue in 2024. Blockchain technology has great potential in reforming voting systems around the world, by providing
a transparent, secure, and auditable platform for casting and counting votes. It can help in minimizing voter fraud and protect the credibility of elections. Moreover, governments are exploring blockchain for identity management, creating secure and self-sovereign
digital IDs. By using smart contracts government processes could be simplified, excluding intermediaries or resources lost.
Consortium Blockchains
Another trend we will see in 2024 is the introduction of consortium blockchains. These consortium blockchains combine the benefits of both public and private blockchains. The primary objective of a blockchain consortia is to facilitate productive collaboration
among competitors. Consortium blockchains offer several advantages. They are particularly suitable for use cases that involve multiple organizations, such as supply chain management or interbank transactions.
Blockchain consortia can focus on two main areas: business, which aims to develop and maintain platforms that address specific business problems, and technology, which focuses on creating reusable platforms based on technical standards.
Other trends
And as the adoption of blockchain is firmly growing there are of course the growing needs for regulation and education.
Regulation
Regulatory authorities worldwide are stepping up their efforts to enforce regulations in the crypto market, which could lead to more standardized and transparent rules in the long run. Clearer regulations will emerge globally in 2024, providing comprehensive
regulatory frameworks for blockchain technology and cryptocurrencies, thereby addressing the social and environmental risks associated with cryptocurrencies, while encouraging the development of dependable digital settlement assets. This will be essential
for the widespread adoption of blockchain.
Education
One trend that stands out in 2024 is the surge in enhanced blockchain education. Due to the growing adoption of blockchain technology there is an increasing need for qualified personnel and skilled professionals.
The need for education is more pressing than ever. We therefor anticipate a significant increase in educational programs and courses by 2024 that are aimed at giving people the skills they need to succeed in the blockchain sector. Access to blockchain courses,
workshops, and online resources is becoming more widespread.
Educational institutions and courses are increasingly integrating blockchain in their educational programs. The industry is thereby witnessing an upsurge in certification programs and industry-recognized qualifications.
Forward thinking
Experts around the world have heralded 2024 already as the year of the large-scale breakthrough of blockchain. We will see a surge in blockchain adoption by enterprises and governments. This as a result of the ongoing expansion of DeFi, the expanding universe
of crypto tokens, the convergence of AI and blockchain, the expansion of blockchain-based Metaverse, increasing regulation and enhanced blockchain education.
These trends will shape the future of digital finance and technology, offering new opportunities, applications and challenges for businesses and industries and promising a world of innovation and transformation.