Blockchain technology will change ―here’s what trends will dominate the technology in 2023

Blockchain technology is one of the fastest-changing technologies that ruled the world in the past years. Shortly after Bitcoin’s reveal on the market and the BTC price surge, many more cryptocurrencies appeared. Blockchain became more than just a network that would be used for trading cryptocurrencies. Nowadays, blockchain is something that can be used in many sectors, like health care and even education, since it provides so many benefits, such as security.

Blockchain has truly revolutionized the former centralized technology and has provided a decentralized approach that suits businesses better. Decentralization allows for planning and decision-making to be done without central or authoritative institutions interfering. While this was the base of many unique programs, blockchain has yet to develop, so we’ll discuss the trends following 2023.

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Upcoming Trends of Blockchain Technology

1. Ethereum will update to Shanghai

After the latest Ethereum update, the Merge, which is consistent with one of the most important changes regarding its consensus mechanism, the plan following the second quarter of 2023 is to release the Shanghai upgrade. This would allow users to withdraw ether stakes so that the amount of staked ETH would increase. Shanghai would also fix many other minor issues that would help reduce network fees for builders and key network participants.

But that’s not everything. Ethereum will get through a roadmap of updates:

• The Surge will raise the number of transactions per second (100,000 per second);
• The Scourge should ensure reliable and credible transaction inclusion to avoid centralization;
• The Verge will allow blocks to be verified more easily and fast;
• The Purge would simplify the protocol and limit the costs of participating in the network;
• The Splurge is the final phase, where everything else will be fixed;

2. NFTs will become more useful

Currently, NFTs are one of the best ways a digital artist can showcase their talent. And although NFT platforms allow artists and investors to get what they want, NFTs don’t really have other utilities. However, starting next year, NFTs will have a more personalized and commercial aspect that will make them useful for many more users.

The most important change regarding NFTs is that the Web3 network will change the way we see NFTs since the “jpeg” era will be close to an end. Therefore, NFTs will become an essential technology base for many businesses since commercial leaders realized the importance of exploring alternative use cases for these non-fungible tokens. For example, Starbucks plans to integrate them into its reward program, allowing customers to engage in a series of fun activities, like playing games and taking on challenges that would reward clients with digital collectibles. By earning stamps, people can unlock unique experiences.

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3. DAOs will become a place for investments

Decentralized autonomous organizations (DAOs) are member-owned communities’ rules under no centralized leadership. Usually, a DAO is made for committing funds to specific causes, donating to charities, or voting on using certain physical or digital assets. In the near future, DAOs will be the place where users can use alternatives to investing through GP/LP venture structures, which is a DAO feature.

This type of investment would provide a transparent, auditable, and collaborative network for deploying and allocating capital. Therefore, instead of relying on experts’ opinions regarding a certain financial decision, investors will be helped by DAOs, which can operate based on the consensus of their global membership. And as the technology evolves, more investment opportunities will arise, leveling the playing field for the average investor.

DAOs have the following benefits:

• They leverage monetary rewards to assist people in finding reliable partners;
• They use simple algorithmic-based frameworks;
• They are open to anyone around the world;
• They are open-source and immutable, providing transparency and incorruptibility;

4. The zero-knowledge proof will become the norm  

Known as “ZK everything”, this privacy technology comes from academic proof-of-concept, mainly used for demonstrating that a product idea (or a business plan) is feasible. ZK proof rose in popularity in the past year since its use case with ZK-Rollups became an essential tool for

Ethereum scaling. In 2023, ZK proof will develop by adopting advanced software development kits used for programming ZK smart contracts into applications. The executed off-chain method will provide more data privacy, attestation, and efficiency. Consequently, the ZK protocol might exceed bitcoin’s proof-of-work market by 2030.

Zero-knowledge proof has the following use cases:

• Allows for anonymous payments because there are privacy-focused blockchain networks that enable nodes to validate transactions without accessing the data;
• Protect the identity of users through decentralized identity. This technology gives people the ability to control access to personal identifiers;
• Improves verifiable computation that allows outsourcing computation to another entity while maintaining verifiable results;

5. Web3 gaming will become more influential

Since gaming activity has considerably increased since the pandemic, the opportunity to include it in blockchain technology would be a waste, which is why Web3 gaming has become a thing recently. It allows users to play and earn tokens that they can use inside the game or transfer to their digital wallets.

Gaming is one of the industries that entered blockchain technology relatively easily. As cryptocurrencies became a big thing on the internet, developers figured that games on the blockchain would be the perfect way to incentivize users who want to gain cryptocurrencies as a hobby more than a financial choice. However, crypto gaming became bigger than expected, and now some of the most successful Web3 games, such as Axie Infinity, have paved the road to the development of this sector.

In 2023, Web3 gaming will become more useful to gamers by releasing projects that include both traditional gaming designs and incentivization. For example, Horizon is a rising gaming platform that provides Web3 trading card games and smart wallets that make building games easier for developers.

Final thoughts

Blockchain technology has the potential to make any business process faster, easier, and safer since it’s a decentralized method of keeping records. Despite its current image and practices, blockchain has the potential to become much more if developers take the right steps. At the same time, depending on the trends, blockchain utilities can shift.

I hope this tutorial helped you to know about Blockchain Technology will change. If you want to say anything, let us know through the comment sections. If you like this article, please share it and follow WhatVwant on Facebook, Twitter, and YouTube for more Technical tips.

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