Blockchain technology has come a long way since its inception in 2008, and the next year is poised to bring even more exciting developments to the industry. As we look ahead to 2023, here are five trends that we believe will shape the blockchain landscape:
- Increased Adoption and Integration by Major Corporations and Financial Institutions
Major corporations and financial institutions have realized the potential of blockchain technology to streamline their operations and reduce costs. In the past few years, we've seen the likes of IBM, Walmart, and JPMorgan Chase continue heavy in blockchain R&D and pilot projects. As blockchain technology matures and its benefits become more clear, we expect to see even more companies publicly jump on board.
2. Development and Implementation of More Advanced and Secure Blockchain Protocols
Roughly a decade old, Blockchain technology is still in its infancy and there is still much room for improvement in terms of security and scalability. In 2023, we expect to see the development and implementation of more advanced blockchain protocols that address these issues. For example, projects like Layer 2 EVMs and increasingly popular Layer 1 alternatives (such as Avalanche and Solana) have implemented proof-of-stake consensus algorithms, which are more energy-efficient than proof-of-work algorithms used by Bitcoin.
3. Continued Growth of Decentralized Finance (DeFi) and Non-Fungible Token (NFT) Markets
Decentralized finance (DeFi) and non-fungible token (NFT) markets have been some of the hottest segments of the blockchain industry in recent years. In 2023, we expect these markets to continue to grow and mature, with more projects and companies entering the space and more mainstream adoption. This will bring more use cases and more opportunities for people to invest and earn yield on their assets. In particular, lower quality projects have begun flushing out and longer-term use cases and value propositions are emerging (such as token-gated ecommerce like www.mrblockshop.com!)
4. Expansion of Blockchain's Use Cases Beyond the Financial Industry
Blockchain technology has the potential to revolutionize industries beyond finance, such as supply chain management and digital identity verification. In 2023, we expect to see more companies and projects exploring these use cases and developing solutions that leverage the benefits of blockchain technology. A recent prevalent example from 2022 was the massive growth in Blockchain applications for Intellectual Property and specifically creative arts.
5. Greater Government Involvement and Regulation of the Blockchain Industry
Considering recent events in second half of ‘22, the need for accelerated guidance from regulatory bodies has become obvious. Governments have take notice of the opportunities and risks, which will create increased activity aimed to regulate the industry. In 2023, we expect to see more government involvement and regulation of the blockchain industry, with an emphasis on protecting consumers and preventing money laundering and other illicit activities.
These are just some of the trends that we expect to shape the blockchain landscape in 2023. With the rapid pace of innovation in the industry, there's no telling what other developments and surprises the future holds. But one thing is certain: blockchain technology is here to stay, and it's going to change the way we live and do business.