Blockchain Development - Trends and Technology

Business technologists everywhere read and hear about Blockchain technology and its applications. The popularity of Blockchain has created a huge niche for Blockchain development companies to learn more, experiment, and make their mark in the market.

Why is Blockchain Development Trending?

Blockchain helps create secure and decentralized networks that facilitate transparent, seamless transactions that cannot be manipulated. As it eliminates the need for intermediaries, there are fewer vulnerabilities. It also helps reduce costs and time of executing significant transactions as there are no extra loose ends or mediators. There is much more that makes Blockchain technology the first choice to develop huge, secure, robust, decentralized networks.

Impact on the Market

As you can see, due to the perks of this technology, the markets are embracing it worldwide. Owing to this, the global Blockchain technology market is expected to see a CAGR of 85.9% from 2022 to 2030.

So, what is it about Blockchain technology that it is gaining so much popularity? Let’s understand Blockchain technology through its characteristics to answer this question! 

Characteristics of Blockchain

The infographic above discusses the basic Blockchain characteristics. Blockchain is a lot more, but it is impossible to enlist all its characteristics here. Moreover, as research and development are increasing in this area, more features and characteristics are added, curbing the limitations of this technology. Blockchain has thus come a long way. Let’s have a quick glance at the challenges it faced in this journey.

Blockchain Journey

Despite its qualities, Blockchain technology, like other cutting-edge technologies, has survived after overcoming a large bunch of challenges. Blockchain development has thus come a long way in the past few years. But the journey took work as there was hardly any knowledge and awareness in the beginning. And, it takes time for developers to acquire the necessary skills and leverage them for the best results.        

Initially, Blockchain developers also struggled a lot in the absence of the right tools and resources. With time, they have gained knowledge and awareness of market trends and practices as well. 

Also, now we have the tools that simplify Blockchain development so that the developers can focus on complicated aspects after taking care of the basics. So, what were the tools or resources that changed that made Blockchain technology more accessible and changed the situation?

The Turning Points! 

Every technology that survives after a struggle has a turning point that helps it overcome the hurdles. Blockchain development would not have gathered so much momentum had it not been for platforms like Ethereum and Hyperledger.

Ethereum & Hyperledger are two of the most popular Blockchain development platforms. Let’s look at the features of each, one by one!

Ethereum

Ethereum is an open-source platform that allows the creation of dApps (decentralized applications). It is a commonly used platform now as it offers benefits such as scalability, permission-based networks, a committed global community, rapid deployment, and even its own cryptocurrency. This list is still not exhaustive; the benefits and features are numerous!

Hyperledger 

Hyperledger is an open-source collaboration by Linux Foundation. It provides a variety of tools and frameworks for building advanced Blockchain applications. With Hyperledger, businesses can create and use secure, reliable, and scalable applications for different purposes.

Hyperledger is gaining immense popularity due to this ease in scaling and security in industries that require a big span of networks, such as supply chain, asset management, and finance. Let's have a quick look at the popular Hyperledger projects worldwide.

While these were the basics about Ethereum and Hyperledger, it is essential to understand them in detail to assess the reasons for their popularity. Let’s continue with the differences.

Ethereum Vs. Hyperledger

Among the frequently asked questions about Blockchain, you will commonly find one on comparison of Ethereum and Hyperledger. These are actually very independent and different platforms as they solve different purposes using the same Blockchain technology. Still, to clear the confusion, this infographic describes the characteristics of both in a comparative mode.

Now that we know the technological advancement with Blockchain development that has led to the popularity of Blockchain technology, we should move further to what's in store with the increasing use of Blockchain technology. 

Blockchain Technology Trends

As mentioned above, Blockchain has traveled a long way to reach a point where all businesses want to grab an opportunity to leverage this technology to transform their outcomes. To be able to use this technology, we need awareness of how other players in the market are experimenting with it. So, here are the trends to dominate the Blockchain technology market in 2023.  

Blockchain as a Service

We have all heard about Cloud offerings such as Software as a Service (SaaS), Infrastructure as a Service (IaaS), Platform as a Service (PaaS), etc. The popularity of Blockchain and preference for Cloud mode led to the advent of this service business model for Blockchain, termed BaaS. 

Blockchain as a Service comes with the flexibility and affordability of the Cloud and maintains the benefits of Blockchain, making it accessible widely. BaaS allows Blockchain developers to develop and host Blockchain apps quickly and easily.

With BaaS, more and more businesses will try their hands at Blockchain applications in the coming year, as they will be able to manage the costs associated with it.  

Advanced Cryptography

Due to digitalization and the increasing use of IoT, as security concerns are growing worldwide, advanced cryptography will continue to rule the Blockchain networks. Cryptography is commonly being adopted to encrypt communication between the nodes in a Blockchain network. This trend will offer robust and secure Blockchain networks while preserving transparency and all the benefits of the technology. More and more research is being done in this domain to ensure that the technology is adopted even in the most sensitive industries such as finance, banking, etc., and there is no compromise on security altogether.  

Suggested Reading: How Blockchain Could Revolutionize Traditional Banking

dApps

One of the most significant offerings of Blockchain is decentralized apps or, as they call it, dApps! Due to decentralized computing, dApps allow faster services with no downtimes. This has paved the way for Web 3 integration.  

Suggested Reading: How Blockchain Development Contributed to the Emergence of Web 3.0?

dApps eliminate the control of a central authority, thereby increasing flexibility and privacy on the network. Despite struggling with the challenges that any upcoming technology trend has to go through, this Blockchain trend is here to say and grow much beyond our expectations in the coming years.  

Asset Tokenization

Tokenization is the conversion of physical or digital assets, such as real estate, etc., into digital tokens. This makes real estate dealings and transactions easier and hassle-free. This technology is making assets more accessible to the markets, increasing the scope of sellers and buyers manifold. 

Tokenization allows increased liquidity, faster settlement, and cost reduction. Asset tokenization also increases transparency in real estate transactions. It facilitates fair practices in such asset sales or purchases that were believed to be risky by common people. Blockchain is already contributing to the real estate industry with Smart Contracts that have made the real-estate business more robust, safe, and quick for both sellers and buyers. 

Asset tokenization is adding another feather to the cap with its benefits in industries dealing with asset transactions. Undoubtedly, asset tokenization will be one of the most discussed Blockchain trends in the coming years.    

Wrapping Up!

Blockchain technology is not a new name in the market; it, however, continues to fascinate with its amazing applications. Ethereum development and Hyperledger development have opened new avenues in the Blockchain markets. Businesses leverage these to develop secured, transparent, and robust networks worldwide. 

The trends discussed here can be used as ideas, not to follow the league but to open an opportunity of leading a market that is waiting for innovative Blockchain applications. Businesses that want to stand apart must dare to imagine and generate more ideas from Blockchain technology that will transform the world. But, to convert your imagination to reality, you will need the support of the best Blockchain developers. And, you know you can find such developers only on Goodtal!