Blockchain and its future in 2023: What is Blockchain?
Blockchain technology has come a long way from the time when it was in its nascent stage and has shown immense potential. Worldwide there are umpteen startups that have embraced the blockchain to solve complex issues and increase their productivity not to mention the security benefits. So, what is blockchain and its future and also blockchain trends in 2023?
Blockchain technology ensures that the data within the network remains immutable. And to make that possible it uses cryptography along with decentralized networks. Decentralized, immutability, and reliability are some of the terms which blockchain offers. And it won the trust of enterprises due to the fact that no single entity controls the blockchain. But a collective of nodes takes care of its security and integrity.
Major Blockchain trends in 2023
Below we will discuss some of those trends in blockchain technology which will be witnessed by people in 2023.
By 2026, the commercial value contributed by blockchain will reach over $360 billion, predicts research company Gartner. Then, that will rise to more than $3.1 trillion by 2030.
It is anticipated to cause a significant change in the next decades given present and anticipated tendencies.
Increased use Decentralized Finance (DeFi) systems
DeFi is a hot trending topic that we are witnessing at the current time, as there used to be a time when people needed to follow those lengthy and tedious regulations of the banking industry. But, after the arrival of DeFi, there has been a marked increase and acceptance from the public towards the concept of finance as the need not to go through the regulations of traditional financial intermediaries like banks or other lending institutions.
DeFi conveniently utilizes blockchain development to systematically solve various problems while being energy efficient and lessening carbon footprints. Although the concept itself sounds new to many as blockchain gets developed, DeFi too will see its rise in the future.
Growth of Decentralized Apps (dApps)
dApps development is a hot business these days and those companies who are into dApps development are in fact assisting other enterprises to leverage the maximum out of these applications. dApps such as those do transactions or eKYC will further gain more popularity as it gets adopted on large scale, as businesses will look forward to cash on over the benefits blockchain offers.
Blockchain-based supply chains
We have been hearing all those talks about revamping traditional supply chains through blockchain-based infrastructure. The immutable decentralized ledger of blockchain comes in handy in offering instant access to information regarding its authenticity. The value of the supply chain becomes better by the blockchain with the unquestionable efficiency. It increases its robustness which secures it from malicious attacks or hacks.
Cryptocurrencies and online payments
Bitcoin dominated the arena of cryptocurrency while being the most popular cryptocurrency for several past years. And till now there have been over 20,000 different cryptocurrencies in existence. Cryptocurrencies have already come as a new option for investors to park their liquidity. And also offer investors an opportunity to diversify their portfolios. As of now, there are multiple blockchain currencies. They trade over various exchanges by amateurs and investors alike.
Cryptocurrencies are not only for investing. But they are even serving the purpose of those companies that use them in their apps as a medium to pay for various services. And they can optimize the product.
Growth of enterprise blockchain and its future
Gone are those days when blockchain was limited to the operations of cryptocurrency and finance-related products. Blockchain has made inroads into a wide range of industries worldwide. It is possible due to improved security and scalability. The inherent qualities like transparency and immutability have won the confidence of businesses around the world. And they are embracing blockchain without fear of fraud or censorship.
Medical and Blockchain and its future
Blockchain technology may be used to create apps that manage patient data, regulate the medicine supply, automate transactions related to medical exams and treatments, and more.
Particularly, issues with the manufacture and distribution of fake vaccinations have been addressed. Because blockchain will be a useful tool for tracking vaccination distribution and confirming the legitimacy of vaccine supplies. When it comes to using blockchain to create a vaccination distribution system, IBM is one of the pioneers.
Blockchain will be a beneficial tool in this field of marketing.
Because it can track and assess the success of marketing initiatives, advertising fraud is less likely. This technology facilitates automated filtering, account deletion of virtual accounts, and advertising engagement verification. It may also assist in gathering information on consumer psychology and behavior.
Analysis of income tax, indirect tax, and payroll taxes will be significantly impacted by whether bitcoin is considered a security, commodity, debt, inventory, or cash equivalent. States and countries have different views on this, and regulators’ perspectives are continuously changing. There is also little authoritative advice. Our world of barter transactions, made possible by tokens and cryptocurrencies, requires character assessments (capital vs. ordinary), basis monitoring of fungible assets, and character judgments.
Conclusion on Blockchain and its future
The success of blockchain speaks for itself about how critical today it became as a technology, having extended beyond cryptocurrency to various sectors comprising e-commerce, finance, healthcare, and insurance to name a few. When considering new business models, it is necessary to give careful consideration to the surrounding regulatory environment, as well as to best practices and corporate strategy. In order to conduct an assessment of the potential applications of this burgeoning, forward-thinking industry, professional advisers are only provided with antiquated guidelines and playbooks.
Brantlee Bhide is a project manager at HB Consultancy. She has 16 years of experience working as a project professional across varying industries, countries, and cultures. She operates in both business and technical domains using an approach that she developed.