Blockchain is gathering momentum as the year rolls by; as it does, it’s evolving and improving.
With the increased interest is also increased scrutiny from governments and other regulatory bodies, as this will help manage the activities conducted with blockchain technology.
This however doesn’t stop the technology from evolving new trends that will continue to reshape its usability.
Below are the expected 5 blockchain trends in 2023:
Increased adoption of DeFi platforms, protocols, and Development of layer 2 solutions
DeFi is simply the use of blockchain technology in the development of decentralized financial platforms that offer products or services.
Some of these platforms offer lending and borrowing services using stablecoins, and other financial assets.
The DeFi protocol reached a very significant value of over $40 billion in 2020, and the DeFi space has experienced consistent growth in recent times as well, which is why it is one of the blockchain trends to look out for in 2023.
People are adopting the DeFi platforms and protocols in mass, this drives the need for improved development of layer 2 solutions to boost the speed and scalability of transactions carried out on the blockchain network.
This is vital if we are looking at an increased adoption of blockchain technology. An example of a layer 2 solution is the Lightning Network for Bitcoin.
A growing interest in decentralized oracles and data feeds for smart contracts
The decentralized oracles connect smart contracts to real-time data and based on the information obtained the smart contract is triggered to either execute or not.
This is an expected blockchain trend in 2023 with the increasing interest in decentralized applications (dApps) and smart contracts, there is need for a secure and reliable oracle systems.
Speaking of systems, blockchain technology is used to create a decentralized network of connected devices. This is the application of blockchain on the Internet of Things (IoT).
Advancements in privacy-enhancing technologies such as zero-knowledge proofs
Due to the way, blockchain technology is developed, whatever you do on the block is visible to everyone, so privacy is a thing of concern.
Zero-knowledge proofs are a privacy-enhancing technology that validates statements on the block without revealing the identity or additional information about the user.
The technology is still in early development, but it is expected to be a major blockchain trend in 2023 as individuals and organizations have increased interest in protecting their privacy.
The emergence of blockchain-based digital identity solutions
This blockchain trend is centered around the development of decentralized and secure digital identity solutions, giving individuals increased control over how their information is used and who uses it.
The digital identity solution entails the use of a digital or electronic identity to represent an individual, this includes personal information and other credentials.
Another identity and privacy solution is the use of blockchain technology in the Social Media space.
Here, blockchain technology is being used to create decentralized social networks that allow users to own and control their data, thereby addressing the issues of data privacy and censorship that are prevalent in the social media space.
Development of interoperability solutions to connect different blockchain networks
This is another important blockchain trend in 2023. As blockchain adoption increases, there is a need for interoperability.
Interoperability allows for different blockchain networks to transfer data and values between them securely. An example of an interoperability solution is the Cosmos network.
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