- More blockchain applications to follow in 2023
- Blockchain for sustainability
- Voting systems
- Intellectual Property Protection
- Food safety and traceability
- Real Estate Transactions
- Supply chain management
- Blockchain and AI
“What the internet did for communication, blockchain will do for trusted transactions” -Ginni Rometty, Former CEO of IBM.
First introduced in 2008, Blockchain was brought in as the underlying technology of the cryptocurrency, Bitcoin. 15 years later, blockchain is being used in every single industry one can think of including finance, healthcare, supply chain management, and more. Blockchain has disrupted traditional industries by providing innovative solutions to many obstacles. Its favorable attributes such as transparency, security and decentralization properties, facilitate online transactions. Before we talk about blockchain technology’s applications, let’s have a look at what exactly is blockchain.
What is Blockchain?
In layman’s terms, blockchain technology can be thought of as a digitized, immutable ledger that enables secure, transparent transactions of data, information and assets between stakeholders. Blockchain is also called DLT or distributed ledger technology for its ability to distribute secure transactions over a distributed network. It does so by distributing the access of a blockchain between multiple nodes or entities.
The popularity of blockchain technology has grown rapidly in recent years, particularly driven by its potential to reinvent industries and provide solutions to long-standing problems. According to a recent survey, the global spending on blockchain solutions is expected to reach $19 billion by 2024. We can naturally assume new blockchain trends doing rounds in the market. However, businesses should study these trends in depth before investing as the blockchain market is still considered highly volatile. Given are few blockchain trends to keep an eye out for in 2023.
Blockchain Trends to watch out for in 2023
Defi or Decentralized finance is a new trend that can be observed in the technology markets. It constitutes changing of conventional and centralized financial systems to node-to-node finance with the help of decentralized technologies. This movement used blockchain to deliver state of the art financial services which are not only 100 percent secure but also transparent. The term ‘decentralized’ comes from blockchain’s attribute of not giving transaction access to any singular nodes but rather multiple nodes thus decentralizing access. In 2023, we can expect an emergence of a new version of the Defi movement and tech experts are calling it as Defi 2.0.
Use cases of Defi2.0
- Decentralized Autonomous Organizations (DAOs)
- Fractional ownerships
- Cross-chain interoperability
- Self-executing smart contracts
- Peer-to-peer marketplaces
Non-Fungible Tokens or NFT
NFTs created quite an uproar when they first hit the market. As the name suggests, Non Fungible tokens are referred to as unique digital assets that cannot be replaced or traded. They can be images, videos, art, audio or some digital format asset. On the other hand physical assets and cryptocurrency are not unique, i.e they can be traded. NFTs have their own digital signature which makes it cryptographic and difficult to copy.
Use Cases Of NFTs
- Gaming and Esports
- Digital art
- Identity verification
- Anti-Counterfeiting Solutions
Stable coins are a type of digital currency which is designed in such a way that its value does not fluctuate as much as it does for cryptocurrencies like bitcoin, etherium etc. This enables consumers to predict the value of these digital currencies to some extent and can be used for a variety of applications such as payments, trading and remittances. Tether is one of the most popular stablecoins with almost 70 billion dollars market size. Other popular stablecoins include USDC, BUSD, DAI, and PAX, all with a market value of billions of dollars.
There are many avenues where stablecoins can be seen gaining popularity. Few of them are given below.
Use cases of Stable Coins
- Trading and Remittances,
- Decentralized Finance is one field that actively makes use of stablecoins to maintain stability in the market,
- Stablecoins acts as great hedging option since investors can store funds and protect their assets from market collapses,
Gaming and Esports
Gaming and Esports is another industry which is hopping on the Blockchain bandwagon at an astonishing pace. Be it for in-game asset ownership or player identification, gamers are preferring blockchain for its ease of use, transparency and security. Blockchain gaming is already a 5 billion dollar industry and growing with a lot of potential. Below are some common use cases of blockchain.
Use Cases in Gaming Industry
- In-game asset ownership through blockchain is much more secure
- Player identity verification becomes easy with blockchain
- Blockchain provides a secure and transparent platform for Esports tournaments
And much more!
Central Bank Digital Currencies (CBDCs)
The latest industry to adopt blockchain in the banking industry, which are using blockchain extensively for their digital currencies, commonly called Central Bank Digital Currencies or CBDCs. These currencies are digital versions of national currencies issued and controlled by Central Banks. The central banks use blockchain technology as a digital ledger to track and enable digital transactions of these CBDCs. Here are some use cases of CBDCs which are expected to gain momentum in the coming months.
Uses cases of CBDCs and Blockchain
- Digital payments are made easy on all platforms
- International transactions on a state level are made convenient
- Financial inclusion to countries and communities which are not banked or are underbanked.
- Asset Tokenization
Decentralized Autonomous Organizations (DAOs)
DAO’s or Decentralized Autonomous Organizations are another quite popular trend in the blockchain industry to look out for. A DAO is a type of self-sustaining organization that operates autonomously without any authority or central entity to monitor it. It does so with the help of smart contracts operated on a blockchain network. Members on this blockchain network participate in the decision making process of that organization. DAO type of organizational structure ensures transparency and decentralization in work processes, moreover providing a more democratic approach to decision-making.
Use cases of blockchain in DAOs
- Supply chain management companies can do well to adopt the DAO’s organizational structure.
- Social media companies can also operate as Decentralized Autonomous organizations and incentivise its members to contribute.
- Content creation is another interesting avenue which is in its early stages of adopting DAO structure of governance. With the help of blockchain, Digital Copyright Management is being reinvented as we speak.
Blockchain has the potential to transform the healthcare industry by leaps and bounds. From digitized patient record keeping to drug supply chain management, blockchain can help revolutionize the healthcare industry completely. Its secure, transparent data processing and transfer can help facilitate, and provide critical healthcare, timely. Given are few use cases of blockchain technology in the healthcare industry.
Use cases of blockchain in the healthcare industry
- Drug Supply Chain Management
- Medical device tracking
- Digitized clinical trials and period health records
- Health insurance claims processing
More blockchain applications to follow in 2023
Some other applications of blockchain that are expected to gain popularity in 2023 are:
Blockchain for sustainability
Distributed ledger technology is a great way to track location of grid materials in the energies and utilities industry. This makes it a sustainable and more efficient method for running the utilities industry.
Decentralized voting is proving to be an asset in solving a number of problems that arise in electoral campaigns and voting establishments. Blockchain can be used to mitigate voter fraud and facilitate votes counting.
Intellectual Property Protection
Blockchain-backed IP registry is a new concept which is being preferred by businesses worldwide. Intellectual property owners can put together digital certificates of their intellectual property and use the platform to get royalties for their creations.
Food safety and traceability
In the global agri sector, Blockchain has found its way in tracing food from the source to the consumer. Blockchain provides information on the entire lifecycle of the food products while ensuring safety and credibility to the businesses selling these products. Some companies are also using blockchain to provide its consumers the entire journey of a food product by scanning a single QR code.
Real Estate Transactions
Blockchain provides digital securitization of real estate properties more commonly known as tokenization. With blockchain, digital assets representing real world assets are used and tokenized. These include real estates, policies, properties, revenue sources etc.
These tokens are then made available to more interested buyers and stakeholders. Once a purchase is made, the blockchain network takes care of all the transactions in the most secure process possible,
Supply chain management
Blockchain is also being considered for Supply chain management for its immutability and precision. Contrary to conventional supply chains, blockchain supply chain maps all changes made in logistics and delivery of goods in real time, making it more reliable and user friendly.
Blockchain and AI
The combination of these two technologies can be expected to hit the market soon. AI can smartly detect security threats made to the immutable blockchain network. Combining AI and blockchain together can improve cybersecurity for individuals, businesses and even governments. However high development costs and lack of skill set is restricting this trend to hit the mainstream markets.
These are, but a few, applications of blockchain which have proved extremely convenient for businesses and individuals alike. With new technological advancements every week, blockchain continues to prove its worth. Blockchain technology is surely revolutionary and can completely change the way we interact with the digital world.
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