Over the last year or so there’s been an enormous buzz around Web3, the next generation of the internet. Everything to do with Web3 involves decentralization, transparency, and data security. To achieve these goals, the power of blockchain tech has been leveraged to fulfill business needs and beyond. The demand for Web3 solutions is increasing, meaning we’re likely to see much more of the following in 2023.
Smart contracts are revolutionizing the business world. Entering the world in unison with the Ethereum blockchain, these digital programs allow multiple parties to set unchangeable digital contracts with automated execution. For example, in real estate, everything sellers and buyers must complete can be put into a smart contract. Then, once all of the terms are validated, the agreed payment outcome takes place.
Blockchain infrastructures allow dApps (decentralized apps) to be built using smart contracts and P2P (peer-to-peer) nodes – Ethereum has the most dApps-heavy network out there. Ethereum has recently executed “The Merge” to eliminate proof-of-work, expand capacity, and reduce carbon emissions.
However, the price of Ethereum today has dropped significantly as a result, with miners turning to alternative chains and strategies. Despite the depreciation Ethereum is seeing now, “The Merge” will allow more developers to access the chain and create innovative projects.
Bitcoin was the original use case of blockchain, allowing decentralized finance and thousands of alternative crypto coins to take shape. The crypto market is extremely volatile because its value is based on community.
During 2022, the market crashed exponentially with Bitcoin depreciating massively. However, more retailers and mainstream banks are beginning to accept cryptocurrency as payment, meaning 2023 has the potential to be a wealthy year for crypto holders.
More businesses are pivoting towards a blockchain-centric ecosystem, but they must guarantee user privacy and data security. To make this happen, startups are developing security solutions explicitly for blockchain usage. These solutions utilize artificial intelligence (AI) to carefully monitor nodes and smart contracts, with any anomalies being flagged. Implementing blockchain security allows malicious users to be removed and avoids the theft of assets.
Tokenization is the process of turning physical or digital assets into tradable tokens. For example, real estate portfolios can be represented with digital tokens, allowing investors to trade their physical assets across any acceptable market. Tokenization improves liquidity and breaks previously closed-off markets, allowing investors to diversify their portfolios even further.
Blockchain as a Service
The “as a service” industry has exploded since the realization of cloud technology. Taking the same business model, startups are creating host blockchains and selling space to companies. By doing this, the company does not need to hire a team of blockchain developers, leaving them free to focus on expansion and product optimizations.
Blockchain technology is quickly gaining acceptance as the next logical stage of digital infrastructure. In 2023 and beyond, we’ll see more businesses harnessing the power of blockchain and more users investing in crypto to access decentralized services.