Blockchain Predictions to Watch Out for in 2023

Blockchain continues to gain traction rapidly in numerous fields.

The Importance of Blockchain Post Pandemic

Blockchain is a rapidly developing technology that maintains a set of continuously growing records, termed as blocks. The COVID-19 pandemic has necessitated the coordination and management of large amounts of data. Various digital transactions from various different industries, such as finance, retail, and healthcare, are carried out within the blockchain network. This blockchain network- intranet or internet - is updated, and involves the validation of all parties involved in a given transaction. A new block is added to the older block in a linear, chronological order after validation.

The entire chain is regularly updated and any changes made are reflected in all copies. These blocks in a blockchain are linked and secured using cryptography, thereby meeting security constraints. The global blockchain services market is expected to grow from $2.94 billion in 2021 to $4.65 billion in 2022 at a compound annual growth rate (CAGR) of 58%.This highlights the rate at which the blockchain industry is growing. Considering statistics and benefits, blockchain predictions in 2023 aim at collaborating with other emerging technologies to bring numerous profits to organizations.

Benefits of Blockchain

Blockchain brings in positive outcomes not only for companies but also end users. The major advantage of this technology is disintermediation. Blockchain technology is a distributed ledger, which eliminates the need for a third party organization and makes use of a distributed database. This helps in lowering transaction costs. A third party organization uses a centralized database, which enhances the risk of fraudulent activities.

The issue regarding the security and privacy is eliminated with the use of blockchain, since all transactions are independently processed and verified. Another benefit offered by blockchain technology is the higher availability of systems. Even if nodes in a peer-to-peer network stop working, the network as a whole will continue to work. Moreover, all transactions made on blockchain are immutable, i.e. they cannot be altered or deleted. This helps in resolving the security and privacy issue. Blockchain technology also helps in faster transactions and can be processed 24/7, thus helping users to reduce the time required for interbank transactions.

Blockchain Predictions That Will Define 2023

In 2023, there will be continuation of blockchain trends in various areas, benefiting organizations with innovation.

1. More Governments Will Embrace Blockchain

Governments implementing blockchain in their day-to-day operations have seen significant results. Blockchain technology in 2023 will see significant progress in the HR and recruitment process, where blockchain CVs will streamline the selection process by identifying the details about candidate qualification and other relevant expressions.

2. Blockchain Will Benefit From the Internet of Things

Blockchain technology and IoT work together to improve business processes and even our day-to-day life. The integration of IoT and blockchain opens the door for new possibilities that inherently reduce inefficiencies, enhance security and improve transparency for all involved parties while enabling secured machine-to-machine transactions. Bitcoin could be used to safeguard our smart homes from cyber-burglars looking to steal our data. Additionally, bitcoins would prove ideal for automated transactions between machines.

3. Smart Contracts Will Be Viral

Smart contracts are made possible by blockchain technology because of their consensus-driven nature. Blockchain technology helps fill contracts once the agreed-on conditions are met, such as paying bonuses when targets are hit or dispatching an order when the payment is completed. Insurers AIG teams are piloting blockchain technology for the smart insurance policy.

4. Cryptocurrencies & NFTs Will Be Accepted By More Countries

2023 will be a great year for cryptocurrency and NFTs, which are blurring the lines between digital and physical, fine art and collectibles, unique works and mass production, artistic creation and algorithmic invention. With the creation of new financial instruments, we could see trillions of dollars flowing in financial institutions in the coming years.

5. Artificial Intelligence Based Applications Will Enhance Blockchain

AI-based applications will merge into the mainstream. AI systems need to interpret and fuse data from multiple sources. Additionally, they need their data to be distributed to satisfy real-time requirements. These requirements are fulfilled with blockchain technologies. 2023 will see great progress in AI-based applications.

Blockchain not only offers a new technology, but also a new vision and platform to secure digital assets. Blockchain predictions for 2023 are quite promising and it is undoubtedly going to amaze both organizations and end users with path-breaking innovation.