When Blockchain first emerged as the technology that backed cryptocurrencies, it was met with cynicism and skepticism. Tech experts were undermining its functionalities and criticizing its fervor. A decade and more later, the hype hasn’t died down and blockchain is all the rage. Blockchain market was worth $5.85 billion in 2021 and a whopping $1235 billion by 2030. That is a CAGR of almost 82%.
These numbers are evidence that the market holds a lot of potential and is all set to disturb tech markets worldwide. There are certain blockchain trends that are bound to popularize blockchain technology and its benefits in the coming year. Let’s have a look at all the trends in blockchain that are set to revolutionize 2024!
Blockchain Trends of 2024
No developer can deny the revolutionary changes Defi aka Decentralized finance brings to the table. Defi is an emerging yet extremely successful trend of blockchain technology which is based on the same concept as that of cryptocurrencies. However there is a major difference between the two. While cryptocurrencies such as bitcoin are hosted on its own decentralized network, Defi is a virtual platform to trade and exchange these currencies. Contrary to traditional banking systems where the banks hold and dictate the assets for third party purchases, Defi encourages peer-to-peer transactions and exchanges of currencies. It completely eliminates the need of middlemen, in this case, the banks, and the charges they levy for their services. Another advantage of Defi is that it does not require physical visits to the bank for transfer of funds and can be done digitally and securely.
It is also important to note another subtrend of Defi, Defi 2.0 refers to the next innovations in the Defi industry. This latest version of Defi implements KYC and AML mechanisms, which further help reinstates the security feature of Defi but in a more technologically advanced way.
Defi 2.0 is characterized by :
- Cross-chain communication and scalability of blockchain networks and wallets
- Enhanced yield farming prospects
- Improved governance on-chain
- Competitive market for oracles
- Enhanced user encounter
Here are few Defi and blockchain statistics that backs their growing popularity, provided for by Statista:
- DeFi markets are projected to reach an estimated $16,960 million in 2023.
- Expected CAGR for the period of 2023-2027 is of 19.6% amounting to almost $34,700 million by 2027.
- The average user generated a total of 2000$ in 2023.
- Based on a comparative analysis throughout the globe, the United States have collected the biggest revenue – a high of US$8,673,000 in 2023
- The DeFi industry is expected to garner as many as garner as many as 9.6 million customers worldwide by the end of 2027
# Blockchain adoption in Enterprises application
Another marked trend for the coming year is going to be more and more businesses across multiple industry verticals adopting blockchain technology in their development projects. These enterprises are bound to do so for the following benefits blockchain technology brings to the table:
- Transparency (decentralized network)
- Immutability (Once the data is added it cannot be edited)
- Decentralization( control of data is not limited to a single entity)
- Lower costs (tools such as Smart contracts, Defi reduce requirements for extra manpower)
- And scalability amongst others.
Having realized these benefits, the requirement for a reliable Blockchain Development Company has skyrocketed as more and more enterprises rush to invest in them.
Enterprise Blockchain Statistics ( provided by Market.us)
- The Enterprise blockchain market size is projected at a valuation of almost USD 287.8 Billion by 2032.
- This marks a commendable growth rate of 47.5% from 2023 to 2032.
- Development of enterprise blockchain solutions amounts to 58.0% of the IT markets. BaaS or Blockchain as a service platforms is also witnessing high demand.
- The Linux Foundation, Deloitte Touche Tohmatsu Ltd., Global Arena Holding, Inc., Oracle Corporation, Microsoft Corporation, IBM Corporation, Digital Asset Holdings, LLC, BTL Group Ltd., and Circle Internet Financial Limited are a few of the major companies providing and availing services in the enterprise blockchain market.
#Real world and Digital Asset tokenization
Digital Asset Tokenization might not be a new trend but it is going to rule 2024 as well. Digital asset tokenization is a process through which an owner of an asset gains its ownership rights in form of a digital token. These tokens are nothing but immutable digital certificates of ownership of assets that can be of any object of value, be it physical, fungible, non-fungible assets etc.
16 trillion dollars. 16 Trillion dollars worth of real world assets are expected to be tokenized by the year 2030( source: nasdaq). Such a big and drastic market potential is a clear indicator of the growing popularity of asset tokenization. This trend when backed by blockchain technology sets the tone for digital transformation of fintech and other industry verticals. Given are a few statistics involved with Asset Tokenization:
(source: EY-Parthenon survey report of HNWIs and Institutional money)
- Institutional investors with >$1billion AUM (assets under management) plans to allocate 2.3% to asset tokenization in 2024 while institutional investors with <$1billion AUM plans to allocate 4.1%
- Allocation towards tokenized portfolio of fixed income is set to increase by 600% between 2023-2027
- The global tokenization market size was valued at USD 2400.41 million in 2021 and is expected to grow at a CAGR of 16.77% in coming years.
#AI enabled blockchain technology
Unarguably, two of the most ground-breaking technologies to emerge in the past ten years are blockchain technology and artificial intelligence(AI). While artificial intelligence (AI) equips robots to make decisions similar to how a human would make, blockchain technology ensures applications are safe, transparent, and unchangeable. Blockchain technology and artificial intelligence, when combined, have the power to revolutionize a number of sectors by improving their overall efficiency, transparency, and security. How, one may ask? Let’s have a look! Here are some ways that AI and blockchain coupling can be effectively implemented:
- User Behavioral and predictive analysis
- Smart Contract Security
- Threat Prediction
- Biometric Authentication
- Malware Detection
- Automated anomaly detection
- Though in its earliest stages, the Blockchain AI market is already valued at 3.5 billion dollars worldwide.
- It is expected to secure $3550 million in market size by 2032.
- With an expected CAGR of 22.9%, the demand is increasing by the day. In the blockchain AI trend, the demand for intelligent virtual assistants is the highest.
CBDCs or Central Bank Digital Currencies are currencies that are issued and governed by central banks of a country. Compared to cryptocurrency assets, they are considerably more safe and intrinsically stable.
It is a myth that CBDCs are a new idea; they have really been around for more than thirty years. The Avant smart card was introduced by the Bank of Finland in 1993 as an electronic payment method. It might be argued that the system was the first of its kind in history, even if it was subsequently abandoned in the early 2000s.
However, it has only been recently—due to advancements in technology and a decrease in cash exchanges—that study on CBDCs has been more widespread worldwide. Globally, central banks are now investigating their potential advantages and implementing it for the best
Statistics of CBDCs(Source: Survey by International Monetary Fund)
- About 100 CBDCs were in the research or development phase as of July 2022
- The Nigerian eNaira, which was introduced in October 2021, and the Bahamian sand dollar, which debuted in October 2020 are two earliest, fully functional form of CBDCs
- The covid pandemic encouraged as many as 87 countries(which contribute to 90% world GDP) to explore CBDCs including 9 countries with already fully integrated state – owned digital currencies.
Apart from these notable blockchain trends also include blockchain integrated Metaverse, Blockchain based voting systems, Blockchain as a service or Baas, emergence of dApps (decentralized apps) and stablecoins, blockchain based insurance and many more.
The advent of Blockchain marks a new era of digital security, economy and technology. The future entails largely of blockchain industries and sooner the businesses understand it the better! However one deterrent to such businesses is often the vast number of options to choose from. Today there are thousands of companies that promise quality custom blockchain development services but fail to fulfill that promise. Very few companies are able to deliver these services with quality and versatility. Openxcell is one such company, known for its robust blockchain solutions and 700+ happy clients who vouch for its competence. To kickstart your blockchain development journey, get in touch with them today!
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