by Vipin Vindal
Over time, blockchain technology has gained wide recognition for its ability to disrupt or revolutionize multiple industries through transparent and secure storage and transfer of data and assets. It is used in many applications including financial services, healthcare, supply chain management, and government. As the technology continues to evolve, the next few years are expected to usher in new trends and innovations in the blockchain industry.
The following passages explain some of the trends expected to dominate the blockchain industry in the coming year:
- Enterprises are increasingly adopting blockchain
The first and most important trend expected to dominate the industry is the increasing adoption of blockchain by most businesses.
Regulators and governments around the world have begun exploring blockchain for secure and transparent tracking. Hence, it is highly likely that we will witness further adoption of this technology in this field in the near future.
- Adoption of private blockchains will increase
While public blockchains are on the rise, going forward we will witness a surge in the adoption of private blockchains. This will allow organizations to gain greater control over existing enterprise data while maintaining the ability to verify and validate transactions. Now, since private blockchains have fewer nodes than public blockchains, they can scale faster and have higher transaction volumes. It could make them more practical for specific use cases, such as supply chain management or cross-border payments.
- Asset Tokenization Will Witness an Rise
It is expected that certain industries such as healthcare and finance may opt for private blockchains in the coming years due to the need for increased privacy and security.
Blockchain-powered tokenization allows businesses and retail users to convert assets, including real estate portfolios and works of art, into digital tokens. This increases the liquidity of an otherwise illiquid asset, allowing owners to sell tokens through secondary markets. This increases investors’ accessibility to previously inaccessible assets and provides opportunities for portfolio diversification. Additionally, smart contracts automate token transactions and increase transaction transparency, providing a single source of truth. Thus, tokenization enables all stakeholders to verify their holdings and ensure fair practices.
- The emergence of more blockchain-based cryptocurrencies
While Bitcoin happens to be the most popular cryptocurrency over the years, we can expect more blockchain-based cryptocurrencies to emerge by 2023. As of November 2022, there are over 20,000 cryptocurrencies in existence. These new assets may provide better liquidity and provide investors with more opportunities to diversify their portfolios across multiple blockchain-based currencies.
- Government departments implement blockchain
Government departments are also preparing to implement blockchain in 2023 to ensure better functioning of departments and industries. Until now, a blockchain is a secure and inextensible network of data interwoven as a public ledger. It is therefore only fitting that this breakthrough be incorporated into the government process. Sometimes, government agencies spend a lot of time performing tedious tasks using legacy systems. As we move into 2023, governments around the world should start looking into blockchain technology to expand its visibility. We can expect governments to use blockchain for a range of applications.
- The Emergence of Private Blockchains and Blockchain Security
Looking ahead, 2023 will also see the emergence of private blockchains and blockchain security. Private blockchains are mostly owned by businesses and organizations. Private blockchains are characterized by a centralized authority deciding the user accessibility of the network. Additionally, every node in a private blockchain holds a copy of the entire blockchain, and owners are able to reverse or delete transactions. This gives businesses greater control over corporate data.
Launching blockchain security is something the industry will see in 2023. The main applications of blockchain are in investment vehicles and financial transactions. The main applications of blockchain happen to be financial transactions and investment tools. Additionally, privacy and data integrity are critical to all blockchain networks as organizations and users transition to more blockchain-centric workflows. To secure such networks, blockchain security solutions are developed. They implement advanced analytics and artificial intelligence to monitor smart contracts and transactions to identify discrepancies.
The above-mentioned trends show that blockchain as a technology will not only survive, but also develop by leaps and bounds. As it develops and breaks through, this technology will continue to be an integral part of our lives.
The author is the CEO of Quark Technology
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