6 Blockchain Trends To Watch Out For In 2023

Berry Mathew

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6 Blockchain Trends to Watch Out for in 2023

Blockchain is currently the leading technology. It allows companies to establish their business in a decentralised, secure and transparent nature. The market is growing rapidly, and more and more companies are using this technology. As a result, the market sees record investments from Venture Capitalists. 

Blockchain is an excellent tool for businesses and end-users to democratise services while also ensuring data privacy and security of the software. In addition, the growing demand for NFTs, cryptocurrencies and Metaverse development is boosting blockchain development within many industries. 

Since the blockchain market is growing, companies should follow and adapt to trends that appear in this industry. This helps organisations to stay relevant and keep the market speed. However, it could be hard for some firms to know what trends to watch out for and what to avoid. We created this article to help you explore the most interesting blockchain trends that will appear and grow in popularity next year.

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1. Tokenization

Tokenization is one of the hottest trends that have already started in 2022 and seems to remain next year. This process uses blockchain technology to turn digital and physical assets into digital tokens. Tokenization is similar to how cryptocurrency works, although asset tokenizing makes these assets much easier for other people.

For instance, regular users can enjoy tokenisation to divide up their investment in a portfolio of stocks or bonds into much smaller parts known as tokens. These tokens can be quicker and easier sold and bought. Tokenization will be first used by retail space, according to experts, since it will solve lots of issues associated with ownership and documents in this domain.

Cts used in asset tokenisation also automate transactions while boosting transaction transparency. This makes the process available for anyone, secure and allows all users to know that the process is fair and safe.

2. dApps

Yes, dApps isn’t something new. However, they have only started their way and need more time to fully establish their name on the market, and 2023 seems to give them a great boost. That is because blockchain provides numerous opportunities for decentralised applications with peer-to-peer nodes and smart contracts. For example, the Ethereum blockchain offers tailored tools to develop decentralised apps (dApps). 

dApps allow to reduce the need for censorship usually done by centralised authorities and guarantee the privacy or dApp development flexibility. In addition, dApp market is stable since it doesn’t experience downtime, leveraging computing and utilising open-source licences for ease of use. dApps are also an essential part of the new version of the Web, known as Web3. 

3. Private Blockchain

Private Blockchain is a term used to describe a type of blockchain where the network is managed and maintained by one company. In contrast to private blockchains, public ones can be freely viewed by anyone who wants to access it. Therefore, private blockchains allow for higher privacy and security, allowing only invited users to check and maintain the blockchain.

As opposed to Public Blockchain, Private Blockchains require a key – sometimes called an invitation key – from the owner before someone else can join. If a company needs full control over their information but still needs complete verifiability, Private Blockchain networks prove essential for safekeeping their enterprise data. 

In addition, since fewer people are involved in private blockchains when compared to other blockchain types like public ones, these blockchain networks are associated with faster transaction speeds and improved scalability rates. 

4. DAOs Go Mainstream

With the popularity of blockchain technology, decentralisation is becoming essential and works as a base for businesses to operate. Decentralised Autonomous Organizations, also known as DAOs, refer to a new model for companies that can exist and perform transactions without the need for humans.

In addition, DAOs refer to automated entities that work on specific rules described in smart contracts and have no single point of failure. These decentralised structures help the company’s capital to be spread within various investments instead of concentrating solely on a single ownership structure. 

DAOs have also been shown to offer organisations and individuals better access to economic resources by offering them to invest their finances into projects they find interesting and profitable without someone else to manage it. 

5. NFTs Focus On Real-World Utility

There is great hype around crypto games and crypto collectables with the adoption of non-fungible tokens (NFTs). With the growing popularity and development of NFTs, we see changes in their uses.

That is why NFTs are now focused on real-world utility, offering a more sustainable and effective way for them to exist and be used. The market even offers blockchain-based platforms, which are used by many people to trade their digital assets on secondary markets. 

In addition, some organisations have even started producing digital certificates that prove ownership. These certificates are now stored safely on the blockchain ledger and can be traded using smart contracts or wallets when required. NFTs will definitely grow in 2023, and experts believe that many organisations will have plans to integrate them into their offerings.

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6. Blockchain uses AI

Blockchain is now used in various fields and alongside different technologies for many purposes. One of the most interesting use cases of blockchain is artificial intelligence. AI can make data-driven decisions about blockchain technology, including whether transactions are fraudulent or what data should be stored on a specific node.

AI can help speed up blockchain networks and boost their efficiency, allowing them to handle more information than before. The combination of AI and blockchain seems to also lead to increased security measures, enabling nodes to communicate with one another. 

Final Thoughts

Blockchain is a hot topic. Offering security, transparency and speed, this technology is now used in various spheres. Thanks to the increased use of mobile phones, digitalisation and the need to improve security, the blockchain market is growing rapidly. That is why companies should always check trends that may appear in the future. Hire a blockchain app development company to stay relevant and be ready for changes.