It is clear that blockchain will revolutionize operations and processes in many industries and government agencies if adopted, but its adoption will take time and efforts, moreover, blockchain technology will stimulate people to learn new skills, and traditional business enterprises will have to completely rethink their processes to extract the maximum benefits from the use of this promising technology.
The following 9 trends will dominate blockchain technology in 2023:
Blockchain 4.0
Blockchain 4.0 is focused on innovation. Speed, user experience and usability by larger and general mass will be the key focus areas for Blockchain 4.0. We can divide Blockchain 4.0 applications into two verticals:
Web 3.0
The global financial crisis of 2008 exposed the cracks in centralized control, paving the way for decentralization. The world needs Web 3.0 – a user-sovereign platform. Because Web 3.0 aims to create an autonomous, open and intelligent Internet, it will rely on decentralized protocols, which blockchain can provide.
There are already some third-generation blockchains designed to support web 3.0, but with the rise of Blockchain 4.0, we can expect the emergence of more web 3.0-focused blockchains that offer cohesive interoperability, automation through smart contracts, seamless integration, and censorship resistance. storage of P2P data files.
Metaverse
The dream projects of tech giants like Facebook, Microsoft, Nvidia and many more, Metaverses is the next big thing we will experience in the next few years. We are connected to virtual worlds across different touch points such as social engagement, gaming, work, networking and many more. Metaverse will make these experiences more vivid and natural.
Advanced AI, IoT, AR & VR, Cloud Computing and Blockchain technologies will come into play to create the virtual-reality spaces of metaverse, where users will interact with a computer-generated environment and other users through realistic experiences.
Centralized Metaverse involves more intense user involvement, deeper use of Internet services, and more disclosure of users’ personal data. All of these almost certainly mean higher exposure to cybercrime. Giving power to centralized bodies to regulate, control and distribute users’ data is not a sustainable setup for the future of Metaverse. Therefore, much emphasis has been placed on the development of decentralized Metaverse platforms that will provide user autonomy. Decentraland, Axie Infinity and Starl, these are all decentralized Metaverses powered by Blockchain.
Blockchain 4.0’s advanced solutions can also help Metaverse users regulate their security and trust needs. Take the Metaverse gaming platform, for example, where users can buy, own and trade in-game items with potentially enormous value. Proof of ownership through something as immutable and rare as NFTs will be required to prevent counterfeiting of these assets.
In the end, blockchain 4.0 will enable businesses to move some or all of their current operations to secure, self-recording applications based on decentralized, trustless and encrypted ledgers. Businesses and institutions can easily enjoy the basic benefits of the blockchain.
Stablecoins will be more visible
Using Bitcoin as an example cryptocurrencies are very volatile in nature. To avoid that volatility, stablecoins have come into the picture strongly with stable value associated with each coin. As of now, stablecoins are in their initial phase and it is predicted that 2023 will be the year when blockchain stablecoins will reach their all-time high.
Social Network Problems Meet Blockchain Solution
There are approximately 4.74 billion social media users around the world in 2022.
The introduction of blockchain in social media will be able to solve the problems related to notorious scandals, privacy violations, data control and content relevance. Therefore, the blockchain mix in the social media domain is another emerging technology trend in 2023.
With the implementation of blockchain, it can be ensured that all the social media published data remains untraceable and cannot be duplicated, even after it has been deleted. In addition, users will be able to store data more securely and retain their ownership. Blockchain also ensures that the power of content relevance lies in the hands of those who created it, instead of the platform owners. This makes the user feel safer as they can control what they want to see. One challenging task is convincing social media platforms to implement this, this could be on a voluntary basis or due to privacy laws similar to GDPR.
Interoperability and Blockchain Networks
Blockchain interoperability is the ability to share data and other information across multiple blockchain systems as well as networks. This feature makes it easy for the public to view and access the data across different blockchain networks. For example, you can send your data from one Ethereum blockchain to another specific blockchain network. Interoperability is a challenge, but the benefits are huge.
Economics and finance will lead Blockchain applications
Unlike other traditional businesses, the banking and finance industry does not need to introduce radical transformation in their processes to adopt blockchain technology. After being successfully employed for cryptocurrency, financial institutions are beginning to seriously consider blockchain adoption for traditional banking operations.
Blockchain technology will enable banks to reduce excessive bureaucracy, conduct faster transactions at lower costs and improve their secrecy. One of the blockchain predictions made by Gartner is that the banking industry will derive billions of dollars in business value from the use of blockchain-based cryptocurrencies by 2023.
In addition, blockchain can be used for the introduction of new cryptocurrencies that will be regulated or influenced by monetary policy. In this way, banks want to reduce the competitive advantage of standalone cryptocurrencies and gain greater control over their monetary policy.
Blockchain Integration in Government Agencies
The idea of the distributed ledger is also very attractive to government authorities that have to administer very large amounts of data. Currently, each agency has its own separate database, so they must constantly request information about residents from each other. However, the implementation of blockchain technologies for effective data management will improve the functioning of such agencies.
According to Gartner, by 2023, more than a billion people will have some data about them stored on a blockchain, but they may not be aware of it. Also national cryptocurrencies will appear, it is inevitable that governments will have to recognize the benefits of blockchain derived currencies. Digital money is the future and nothing will stop.
Blockchain combines with IoT
The IoT technology market will see a renewed focus on security as complex security challenges emerge. This complexity stems from the diverse and distributed nature of the technology. The number of Internet-connected devices has crossed the 26 billion mark. Device and IoT network hacking will become commonplace in 2023. It’s up to network operators to stop intruders from doing their business.
The current centralized architecture of IoT is one of the main reasons for the vulnerability of IoT networks. With billions of devices connected and more to be added, IoT is a major target for cyber attacks, making security paramount.
Blockchain offers new hope for IoT security for several reasons. First, blockchain is public, everyone participating in the network of nodes of the blockchain network can see and approve the blocks and the transactions stored, although users can still have private keys to control transactions. Second, blockchain is decentralized, so there is no single authority that can approve the transactions which eliminates Single Point of Failure (SPOF) weakness. Third and most importantly, it is secure—the database can only be extended and previous records cannot be changed.
Blockchain with AI
With the integration of AI (artificial intelligence) with blockchain technology, it will make a better development. This integration will show a level of improvement in blockchain technology with sufficient number of applications.
The International Data Corporation (IDC) projects that global spending on AI will reach $57.6 billion by 2023 and 51% of businesses will make the transition to AI with blockchain integration.
Additionally, blockchain can also make AI more coherent and understandable, and we can trace and determine why decisions are made in machine learning. Blockchain and its ledger can record all data and variables that go through a decision made under machine learning.
Moreover, AI can increase blockchain efficiency far better than humans, or even standard computers, can. A look at the way blockchains are currently used on standard computers proves this with a lot of processing power required to perform even basic tasks
Examples of applications of AI in Blockchain: smart computing power, creating diverse data sets, data protection, data monetization, trust in AI decision making.
Demand for Blockchain experts
Blockchain is a new technology and there are only a few percent of individuals who are proficient in this technology. As blockchain technology becomes a rapidly growing and widespread technology, it creates a situation for many to develop skills and experience on blockchain technology.
Although the number of experts in blockchain fields is increasing, on the other hand, the implementation of this technology has a rapid growth that will create a situation for the demand of Blockchain experts by 2023.
It is worth saying that there are sincere efforts by universities and colleges to catch up with this need, including San Jose State University with several courses covering blockchain technology, but the rate of graduating students with enough skills to handle blockchain technology , is not enough to close the gap. Companies are also taking steps to build on their existing talents by adding training programs for developing and managing blockchain networks.
Ahmed Banafa, author of the books:
Secure and Smart Internet of Things (IoT) using Blockchain and AI
Blockchain Technology and Applications
Quantum Computing
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