Author: Satu Kauppinen
Publication date: 29.08.2023
Blockchain technology has become quite famous this year. Also, interest keeps growing and blockchain is believed to have great potential. A PwC report estimates that by 2030, the adoption of blockchain technologies has the potential to elevate the worldwide economy by $1.76 trillion. Actually, experts agree that when blockchain technology improves, its role will grow in society.
Blockchain trends
There are several future trends that focus on smart contracts and cryptocurrencies.
Smart contracts
Within the blockchain ecosystem, smart contracts have become a fundamental component embraced by numerous businesses. In particular, they streamline various documents, including licenses and certificates.
As a result, they led to reduced expenses and decreased reliance on third-party entities. Moreover, they enhance the speed and precision of international trade processes.
Layer 2 protocol is developed to solve blockchain scalability problems. There are also some smart contract solutions without blockchain technology. Only the future will show us if it is possible to find better technology than blockchain technology for smart contracts.
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Decentralized finance
Blockchain-based financial infrastructure has recently received a lot of attention. Decentralized finance revolves around securely storing funds in a digital wallet using smart contracts.
They eliminate the need for distinct charges or fees associated with traditional banking services. Therefore, this innovative use of blockchain technology has the potential to shape the future landscape of finance.
Applications
In this year, there will be a significant rise in the demand for software developers skilled in blockchain technology. The need for proficient individuals in this field will increase substantially. This is particularly true for creating robust applications capable of executing secure transactions and advancing features.
Cryptocurrencies
Cryptocurrencies and blockchain-based payment systems leverage blockchain technology. In particular, their aim is to store transactional data within decentralized peer-to-peer networks. In fact, blockchain eliminates the need for centralized entities like banks. This results in reduced transaction expenses and heightened security.
Value chains
Blockchain technology facilitates global partners in exchanging real-time data. Technology collaborates and harnesses the advantages of digitalization in global trade. In addition, blockchain fosters strategic innovation, efficiency and expansion opportunities.
Blockchain technology will revolutionize global trade by providing digital means to securely share information. Blockchain decreases search and information expenses. It also reduces costs related to oversight and enforcement in global economic transactions.
Banks
Blockchain technology offers banks the advantage of facilitating faster and more cost-effective transactions, simultaneously diminishing unnecessary bureaucratic processes.
Moreover, it provides the opportunity to introduce new cryptocurrencies that adhere to monetary regulations. This strategic utilization significantly diminishes the competitive edge held by independent cryptocurrencies. This way, it presents a notable advantage for banks.
Blockchain shapes the future
As blockchain trends unfold, blockchain’s potential to reshape industries, streamline processes, and enhance security is becoming clear. People say that its role in the next technological revolution is undeniable.
This is because there is a promising future where decentralized and secure systems redefine the way we conduct business and interact globally. So, in general, there are some challenges to solve for applications but blockchain has enormous potential in countless fields.
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Reference List
● Blockchain technologies could boost the global economy US$1.76 trillion by 2030 through raising levels of tracking, tracing and trust ● Blockchain In Banking And Financial Services Global Market Opportunities And Strategies To 2031 ● Decentralized Finance: On Blockchain- and Smart Contract-Based Financial Markets ● Blockchain smart contracts: Applications, challenges, and future trends ● A transaction cost perspective on blockchain governance in global value chains