A Guide to Blockchain Application Development Services Trends
Even though blockchain quickly gained popularity, it is still a new technology that has developed its name on the market. Blockchain ledger was first developed for Bitcoin, and it is now widely used as the underlying technology for all cryptocurrencies, allowing peer-to-peer transactions with high speed, transparency, and a high level of security.
Blockchain has also evolved after COVID-19, becoming a secure tool for healthcare applications and other industries. Today blockchain is much more than underlying technology for crypto assets. It has been successfully adopted in healthcare, banking, NFT, metaverse, social media, and other industries.
Since the market needs stable and secure solutions, blockchain quickly evolves, offering new trends for all industries. It is worth noting that all trends of blockchain are based on its decentralization and transparency. We created this article to help you explore blockchain technology trends that seem to bring great potential in the future.
1. Environment-Friendly Solution
Being environmentally friendly remains the most appealing blockchain trend in 2024. This means that most used blockchain ledgers consume large amounts of power. In addition, some protocols (those dependent on Proof of Work) usually require a lot of computational work for validation, which comes with high energy consumption. Thanks to these issues, developers are moving to greener options. Even though the movement has already started, we will see the results in upcoming years.
2. NFTs and Real Estate Tokenization
Non-fungible tokens (NFTs) are increasingly popular. They have gained interest from both users and investors looking for income and digitalization. Due to interest in NFTs, the Metaverse market has also experienced a boom and grown dramatically within the last year.
Even though some believe that NFTs are popular enough and won’t grow in 2024, the truth is that they are only starting their way, and we will soon see the world using NFTs for many more purposes. Now they are mainly used for entertainment and art, but soon they could be accepted as rockets and payments as well.
Thanks to NFTs and Metaverse growth, you can also see the boom in real estate tokenization in 2024. This market is in its development stage, but experts believe there will soon be a huge interest in tokenizing properties.
3. Metaverse Growth Meaning
As we mentioned, the growth of Metaverse was driven by NFTs during the last year. However, now experts say that both industries affect their growth identically, helping to create a more user-friendly, profitable, and engaging space. Alongside unique experiences, Metaverse is used and is growing thanks to a lot of hype created around the space in recent times.
Facebook has changed its name to Meta, and Microsoft is considering the opportunity to offer metaverse workplace services to boost the remote team. Although Metaverse is a trend, not everyone knows its meaning. It is a 3D world version of our world that gathers users for various purposes, like working, attending concerts, and communicating by using a combination of AR and VR.
4. DeFi Products and Another Safety Layer
DeFi is the abbreviation for decentralized finance, which works as an umbrella for apps and projects based on the public blockchain and is specially designed to replace traditional finances. As the name implies, DeFi covers all apps built on blockchain technologies, which are usually developed using smart contracts. Smart contracts refer to digital contracts that describe how the app works and under which conditions. They automatically enforce transactions when conditions are met.
DeFi products have been shown as more effective, cost-efficient, and more secure alternatives to traditional finances. Since experts predict that the DeFi market will only grow, the trend will also remain and is worthy of consideration. More upgrades will be seen in 2024, so users will get improved products and new models.
5. Rise of DAOs (Decentralized Autonomous Organizations)
There are many reasons for the popularity of Decentralised Autonomous Organizations (DAOs). However, the key one is that many people believe these organizations will make it possible to get an exemption from taxes and legal liability.
The truth is that DAOs allow participants from many countries to collaborate in developing a multinational corporation. DAOs can also help to ease the process of hiring foreign employees.
6. Blockchain Layer 2
With the growing popularity and meaning of DeFi, experts see the rise in layer 2 of blockchain. Since DeFi is in charge of strong congestion in the blockchain network, it is essential to scale the blockchains using two primary ways-
- Scaling the base layer itself (L1)
- Scaling by offloading some of the work to Layer 2
Blockchain Layer 2 is developed by utilizing third-party integrations and off-chain solutions. Its key purpose is to increase Blockchain scalability. You can take the Lightning Network and Polygon as fresh examples of Layer 2 networks that seem to easily reduce the load on Layer 1 networks, such as Ethereum (ETH).
Final Thoughts
Blockchain is currently one of the hottest trends in the tech world. It offers many opportunities for businesses in different fields, providing increased transparency, speed, cost-effectiveness, and new ways for modern companies to operate. However, just knowing these facts is not enough to develop strong and stable products. Knowing trends that you can consider and using blockchain app development services can help you achieve the best results out of your investments.