Future of Blockchain: Trends and Predictions  

Blockchain
Future of Blockchain: Trends and Predictions  

Introduction 

Day by day, we see an increase in the adoption of blockchain technology, embracing digital currency to easing up cross-border remittances across multiple industries. It has proved to be a notable change in distinct sectors, offering secure and transparent transactions.  

As we come to the end of the year, we need to look into the future and analyze the emerging technology trends and predictions that will change the future of blockchain. The future of blockchain promises to bring out rapid changes impacting diverse industries.  

The global blockchain technology market size is estimated to extend around USD 2,334.46 billion by 2032, poised to grow at a compound annual growth rate (CAGR) of 85.7% from 2023 to 2032. 

According to the recent report by Precedence Research, the estimate is driven by the increase in investments in blockchain technology and venture capital. The widespread use of blockchain solutions in banking and cybersecurity resulted in the adoption of smart contracts, digital identities, and payments.  

It is time for us to dive into blockchain’s future trends, predictions, and impact on the tech table.

1. A Step Ahead: Looking into the Trends and Predictions for the Future of Blockchain  

1.1 Decentralized Finance  

The rise of decentralized finance (DeFi) has been a prominent trend in the blockchain. The future of blockchain will witness the continued growth of DeFi applications, lending, borrowing, and exchanges. This trend is revolutionizing traditional finance systems by providing more accessible and inclusive financial services to a global audience. 

1.2 Trends in Decentralized Finance (DeFi)  

DeFi in Lending Loans  

DeFi lending protocols like Goldfinch, Maple, and others are revolutionizing the private credit market, providing small and medium enterprises access to debt capital from public markets, the banking system, and traditional private credit originators.  

Abstract blockchain concept with interconnected nodes and glowing lines

DeFi in Central Banks of Digital Currency 

Blockchain technology is transforming how banks manage tokenized deposits and wholesale settlements. Banks are exploring blockchain for faster cross-border transactions, led by companies like J.P. Morgan Chase. This trend will grow, improving global financial efficiency. 

1.3 Interconnected Ecosystem

One of the significant trends in the future of blockchain is interoperability. As different blockchains emerge, the need for seamless communication and data sharing becomes crucial. Blockchain technology trends involve ensuring communication between existing and new blockchains to create an interconnected ecosystem. 

Various platforms facilitate interoperability, such as the Inter-blockchain Communication Protocol (IBC) utilised by Cosmos Network, Parachain technology by Polkadot, and Bridge by Cardano.    

1.4 Blockchain Integration in HR Process  

Blockchain technology is expected to become increasingly integrated into HR functions, offering streamlined processes for areas such as payroll management, background verification, and secure storage of employee records. This integration aims to enhance transparency and data security within HR operations.  

Some companies employ blockchain-based platforms to facilitate secure and efficient candidate background checks. This blockchain application ensures that the verification process is transparent, tamper-proof, and secure, providing a prominent level of trust and credibility in the recruitment process. 

The Rise of AI and Blockchain  

The merging of blockchain and AI is a compelling trend with significant potential. When these two technologies are combined, they can create innovative solutions. AI’s ability to streamline and automate processes on the blockchain ensures the security and transparency platform for AI operations.  

AI relies on large volumes of data for optimal performance. Blockchain technology offers a secure, decentralized solution for storing and sharing this data. This can enhance AI capabilities by providing access to greater data.  

Blockchain as a Cloud-Based Service

Blockchain-as-a-Service (BaaS) is a cloud-based infrastructure that simplifies blockchain adoption for businesses. It allows companies to develop and deploy blockchain applications without managing complex infrastructure, reducing resource consumption, and bringing innovation.

Use Case  

BaaS operators like Microsoft and Amazon provide blockchain services for web hosting, handling infrastructure, and maintenance. Hyperledger Fabric by Amazon is one such provider, allowing businesses to focus on their functions without creating an entire blockchain environment from scratch. 

2. Other Tech Trends

2.1 IoT and Blockchain

Blockchain and IoT merge to create a decentralized architecture and cryptographic encryption tools. This convergence presents new opportunities and applications, addressing security and data assurance challenges commonly faced by IoT technology. By leveraging blockchain, IoT systems can establish a secure framework for data exchange between devices and reducing vulnerabilities to cyberattacks, fraud, and unauthorized access

In addition to this, blockchain facilitates a reliable and transparent platform for IoT devices to communicate and transact with each other.  

2.2 Blockchain in the Government Sector  

Governments are significantly embracing blockchain for its potential to transform voting systems, identity management, and governmental processes. This trend is expected to continue, with blockchain offering transparent, secure, and auditable platforms for voting that ensure minimizing fraud, and simplifying government procedures through smart contracts and self-sovereign digital IDs. 

  • Indian state and local governments are adopting blockchain in public administration for data management systems to verify certificate issuances
  • China’s government is experimenting with blockchain-based managed IDS with a new scheme to reduce data leaks.  

2.3 Blockchain in the Education Sector  

The rise in the adoption of blockchain technology is driving a change in the blockchain education system. The growing demand for skilled professionals has increased educational programs, and courses focused on individuals with the necessary skills for success in the blockchain sector.

This trend includes expanded access to blockchain courses, workshops, and online resources. Blockchain in education also embraces verification, tamper-proof documents, and certificates.

  • Manipur’s education department is initiating blockchain in the education system to verify unique products, which is focused on verifying and storing educational certificates over the internet computer. By integrating blockchain, it ensures that the certificates are authenticated. Additionally, the Internet Computer Blockchain (ICP) based solution enhances certificate credibility and empowers students in their job search.  

Conclusion 

The future of blockchain is a widespread innovation and evolution of technology. The trends and predictions outlined in this article highlight the potential for blockchain technology for various industries streamlining processes. This ensures the creation of new opportunities for businesses and other sectors. Blockchain technology tends to reshape with advanced technology in the coming future. 

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