Exploring the Latest Trends in Blockchain Technology for 2024

Blockchain trends are changing business industries, giving new development opportunities. Blockchain became the foundation for the new wave of the internet, Web3, and changed the perception of the digital world. In the last quarter of 2023, blockchain technology remains very popular and constantly growing.

There are some powerful drivers affecting recent developments in blockchain technology.

Firstly, the interest in blockchain and digital finances is growing in both the private and public sectors. Government authorities around the globe support new crypto technology and adopt it.

Secondly, the need for transparency and security became the cornerstone of our digital experience. That is why current trends in blockchain technology represent the general interest and routes for the further development of many kinds of organizations.

Growth of the blockchain technology market

By the end of 2022, the global blockchain technology market size was estimated at $10,02 billion. By 2030 it is expected to reach $3.1 trillion, though total amounts of investments are unpredictable because of its constant acceleration.

Here are some facts and figures on the current state of the blockchain market:

• North America has the largest blockchain technology market share. In 2022, this region accounted for almost 38.0% of the global revenue.
• By July 2023, there were over 85 million blockchain wallets registered in the world.
• There is an increasing number of blockchain startups globally. 57% of blockchain investments were directed to Web3 startups in 2022.
• Blockchain protocols can reduce up to 30% of banking infrastructure costs. Blockchain adoption can save $12 billion per year only in the banking segment.
• In 2022, the infrastructure and protocols sector led the market, representing over 61.0% of global revenue. It overtook middleware and application & solution segments.
• In terms of global revenue share, the large enterprises led the market. By the end of 2022, this segment accounted for more than 67%.
• Government authorities from many countries promote blockchain technology. Non-profit initiatives and commercial organizations make partnerships based on the latest blockchain technology.

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The latest trends in blockchain technology

1. Interoperability

Recently, new and new blockchains have been created for various purposes – blockchains for payments, data storage, smart contracts, etc. These blockchains are separate systems with their own rules, working independently. So it's rather difficult to implement connections between them.

Ensuring communication between existing and new blockchains is one of the key trends in blockchain technology. Such cooperation helps create an interconnected ecosystem with the benefits of each separate blockchain, enabling software engineers to build complex applications with unique features.

For example, the Interchain Foundation created Cosmos Network as its own way to reach interoperability in the blockchain environment (source ). Cosmos uses Interblockchain Communication Protocol (IBC), which allows chains to communicate with each other by creating certificates. If one of the chains in potential connection cannot create a certificate, the interoperability won't be achieved.

Yet IBC is not the only way of reaching the communication between blockchains. There is also Parachain technology by Polkadot, the concept of bridges by Cardano, Cross-Chain Messages by Lisk, and so on. Data exchange between different chains is a new way of using the blockchain environment.

2. IoT with blockchain infrastructure

The Internet of Things (IoT) is experiencing its prime, constantly growing and developing. IoT makes a unique environment with interoperability of hardware, software, and cloud solutions. It generates and transmits significant amounts of data, but its traditional system is centralized and not secure enough.

That is why one of the blockchain technology trends in merging with IoT is creating decentralized architecture and cryptographic encryption tools. Such blockchain-based IoT systems open up new opportunities and scope of application.

By establishing transparent and automated work, IoT systems with blockchain support can help manage smart cities. It keeps tracking numerous indicators and ensures real-time communication between governments, citizens, and organizations. Some cities have already adopted this technology and received outstanding results. In 2022, Copenhagen was one of the leading smart cities, and now it aims to become the first carbon-neutral city by 2025 (source ).

3. Tokenization of assets

Asset tokenization is a way of creating digital tokens that embody certain physical assets. They can have different values and properties, like real estate, commodities, art pieces, etc. But all of them may be divided into little units and tokens and become digitized. These tokens represent ownership and can be traded on different blockchain platforms.

Ethereum is one of the most popular blockchain platforms. Tokens built on the Ethereum blockchain are usually secured by the ERC-20 protocol, which allows users to claim a share or total ownership of these tokens.

The great advantage of digital assets is the opportunity to buy a share of an asset without buying the entire one. That is why asset tokenization is one of the current trends in blockchain technology among investors. For example, it works in real estate, and it is expected to change the industry in the future. Therefore, the real estate industry can be available to a broader range of investors through the absence of expensive real estate investment procedures.

4. The rise of NFTs

Non-fungible tokens (NFTs) are a very similar concept to asset tokenization. Both are digital representations of value, but NFTs have special features. NFT is unique and cannot be replaced by another token with equal value. Besides, it can connect the physical item with the digital world. NFT can be only digital or be a digital replica or evidence of ownership for the physical asset.

Due to their uniqueness, NFTs are usually used for artworks. Initially, they were used for digital visual arts, like images, GIFs, or videos. However, new trends in blockchain represent the expansion of their usage area. There are a lot of created NFTs in music, fashion, gaming, luxury goods, ticket sales, and so on.

For example, decentralized games use the concept of X-to-Earn. The users of such games can gain rewards for different actions, so they can Move to Earn, Learn to Earn, etc. In such a game form, users can learn more about blockchain technology, while NFTs are used as rewards or in-game items.

5. Metaverse

Metaverse looks like a virtual world where people can work, relax, socialize, and do multiple digital interactions. The Metaverse concept is still being developed, and it's supposed to be very different from all the virtual experiences we have already had.

It has some common characteristics with the gaming world, Augmented Reality (AR), and Virtual Reality (VR), but its final form is yet to be determined. Currently, we know some core attributes of the metaverse, and most of them can be real thanks to new blockchain technology.

Blockchain-based environment for the metaverse lets build secure architecture and set rules this universe would work. It also enhances interoperability between different worlds to communicate and exchange content.

The ownership of this content is also provided by digital assets secured by blockchain’s ledger. The purchasing of these assets can be only possible with cryptocurrency. That is why blockchain technology plays a crucial and inseparable role in the implementation of the metaverse.

6. Blockchain-as-a-Service (BaaS)

Blockchain-as-a-Service (BaaS) is a cloud-based infrastructure that allows the deployment and leverage of blockchain solutions. BaaS sets trends in blockchain technology by its practical usage. This technology simplifies the adoption of blockchain to businesses.

Any company can develop and deploy its blockchain application without managing complicated infrastructure. This makes the given application more available and adaptable, reducing resource consumption and bringing innovation. BaaS also allows businesses to select the most suitable blockchain protocol to meet their requirements.

BaaS is supposed to be one of the key blockchain trends in 2024. Technical giants like Microsoft and Amazon are already offering blockchain services. They work like web hosting providers and take care of infrastructure and maintenance.

Hyperledger Fabric by Amazon is such a provider, where the BaaS operator offers usual support activities for the users. It allows businesses to concentrate on their functions because there would be no need to create an entire blockchain environment from scratch.

Blockchain technology trends across industries

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Financial services

Banking and financial services represent 37% of the global blockchain technology market. Blockchain is used for many different financial purposes. For example, stablecoins are new crypto technology demonstrating digital currency with a stable value.

Well-known cryptocurrencies like Ethereum are unstable, and their prices are fluctuating. Stablecoins are pegged to fiat currency to maintain a stable value. This feature makes them a new popular form of investment. For example, USD Coin (USDC) is a stablecoin, pegged to the US dollar, and can be used as an alternative payment method.

One of the other trends in blockchain is creating digital coins as an analogue to fiat money – Central Bank Digital Currencies (CBDC). CBDC is a fiat national currency itself represented in a digital form. This fintech technology can let us forget about the cash in the future.

Healthcare

Blockchain technology in healthcare can be used in numerous ways, from integrated payment systems to verifying healthcare staff credentials. The main blockchain technology trends in healthcare are data protection and drug supply chains.

Healthcare data and medical records require confidentiality to become digitized. Blockchain technology can ensure appropriate data storage and processing. For example, Estonia was interested in these advantages and started to adopt blockchain in healthcare in 2012. Now, almost 95% of healthcare data in Estonia is on blockchain ledgers, which makes this system more trustworthy.

The pharmaceutical segment also needs transparency. About 10 percent of all medicines are counterfeit, and it's challenging to distinguish between fake and original ones. Blockchain technology can monitor the complete lifecycle of a medication. It maintains chains that record each transaction on its way from manufacturing to distribution. Therefore, blockchain can verify the genuineness of medicines in pharmacies and let us forget about fake ones in the future.

Media and entertainment

New blockchains in media can resolve many troubles in this segment, including but not limited to intellectual property issues, digital piracy, and copyright infringement. There are a lot of industry intermediaries that control the market. For example, they are content aggregators, like YouTube, or platforms for purchasing tickets, which take a large share of the creators' income.

The latest trends in blockchain technology in entertainment are support for content creators and privacy protection. Web3 enables creators to own the content they produce.

dApps are at the core of Web3 social media, based on blockchain and smart contracts technology. They allow publishing and distributing content, remaining censorship-resistant, decentralized, and data-protected. Moreover, it is easier to set up and track monetization because blockchain is constantly monitoring every usage of content you publish.

Government

In the government sector, there are also some blockchain technology trends as well. Governmental infrastructure holds and manages a lot of sensitive information. It's crucial to secure it, and blockchain comes in handy here. However, safe data storage is not the only new crypto technology the government can use.

Blockchain can help combat corruption, promoting transparency in grant disbursements, holding electronic voting, etc. The latest blockchain technology trend is smart contracts. These tiny programs automate the execution of any agreement when all the conditions are fulfilled. This technology simplifies government processes and excludes intermediaries or resources lost.

In addition to smart contracts, there are Ricardian contracts, which are already used in the legal industry. They are like an intermediate between traditional and smart ones. They have a cryptographic hash but can be also read by people, not only by code, as smart contracts. That is why they are more trustworthy and available. Ricardian contracts are predicted to be the future of the law.

Retail (eCommerce)

eCommerce was immediately involved in adopting blockchain technologies as they improve the management of logistics and supply chains and protect sensitive customer information. Recent developments in blockchain technology expand the field of its use in retail even more.

Blockchain trends in 2024 in eCommerce are expected to focus on joining forces of AI and blockchain technology. While AI is anticipating and automating all the processes in the supply chain, blockchain makes them secure and transparent.

Businesses earn more revenue by making purchasing personalized and secure at once. It is much easier to apply international shipping and thrive in the global marketplace by adopting rapid AI algorithms and ensuring fair transactions. Such a merger creates trust among consumers and increases sales.

Binariks' experience in blockchain

Binariks is here to support your project's adoption of blockchain technology . Our expert team of blockchain developers can assist you at every step of your blockchain journey, whether you need consulting, development, or implementation services.

We have extensive expertise in healthcare, fintech, insurance, and other industries, so our engineers are adept at applying the latest blockchain technology trends tailored to specific business needs.

For instance, we helped a Japanese educational company launch a new application for issuing and verifying educational badges. To provide maximum security, our client wanted to build an application on blockchain. We fulfilled these expectations and developed a blockchain-backed edutech platform . Now, it is active and validates the competencies and achievements of the students around the globe.

Contact us , and let us create a tailored blockchain solution for your business as well!

Final thoughts

Altogether, blockchain technology brings a new level of maturity to the digital world. Blockchain helps in building trust and transparency in various industries. On the other hand, adopting blockchain technology for business also raises some concerns, mainly related to the allocation of various resources for managing the infrastructure and issues regarding regulatory compliance.

The latest trends in blockchain technology show the way to overcome these challenges. Additionally, you can always rely on Binariks to build trustworthy blockchain solutions!