Transparency, Trust, Security of Data across business networks – These are the buzzwords you hear around Blockchain! Presenting you the Top 5 Emerging Blockchain Trends In 2023.
These are the words that make or break a business. But, there is still less familiarity with Blockchain Technology. Very few businesses have adopted blockchain in their business practices. This could raise doubts about the future of blockchain globally.
However, When we remember how smartphones and the internet swept the world in their wave, it is very much possible. Therefore, it wouldn’t be a surprise to see blockchain transforming every industry, and the very way businesses work.
Blockchain is often called the “Trustless Network”. Not that it cannot be trusted, but because there is no need to be trusted.
Let’s first demystify this Emerging Technology!
- Blockchain’s potential to transform industries by adding transparency, trust and security between different business entities
- Know-how of how blockchain is changing business processes through its distributed systems and ledgers
- The digital security of the Blockchain supports companies in their compliance efforts and adherence to rules and standards.
- Even different types of Government, including the democratic Indian Government, are working on establishing blockchain-like ledgers for documentation in real estate, government quality certificates, and education certificates.
What is Blockchain?
According to Wikipedia, Blockchain is a Digital Ledger of Transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.
Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.
Top 5 Blockchain Trends in 2023
1. Blockchain in Certificate Validation
The Validity and Timeliness of Certificates are the basis for trust between business partners. The Digital Security of the Blockchain supports companies in their compliance efforts and adherence to rules and standards.
Certificates using blockchain technology are tamper-proof and can be viewed transparently by everyone in the business network. The digital certificates can verify the origin of the certificates and the ownership.
Putting our certificates on the blockchain is the first step in building a new digital assurance concept. Currently, there are many concerns in various companies about sticking to ISO standards.
This is the result of people have been tampering with the certificates for years now. By entering them on the Blockchain, companies ensure that they are authentic and cannot be forged. That is, it would be easy to trace the point of origin and history of documents.
The Ethereum Blockchain is ideal for this certificate as it offers secure, transparent, and independent documentation of certification management systems. Once stored, anyone can access the relevant information ensuring efficient processes and user convenience during audits.
Digital Certificates are a Blockchain Trend in 2023, as they prevent misuse and provide consumers and partners with security for future business relationships.
2. Blockchain for Digital Central Bank Currency
Digital Central Bank Money was already a big topic in 2020. There was a whole new idea of the central bank issuing digital money.
China, wanting to play a pioneering role, already launched Digital E-Yuán, controlled centrally by the government, in some sense of decentralized blockchain technology. Libra, the Digital Money of Facebook, has moved many countries to adopt Blockchain technology.
But there are fears and concerns around it. If digital money is to be used, then digital money has to be controlled by the central bank. That is the wish of various countries. Financial sovereignty lies with the central banks and the state, and they want to keep it that way.
Blockchain could be considered for implementation, but we are not certain at all so far. There are still many uncertainties, but central bank money is definitely one of the Blockchain Trends in 2023 because it is only a matter of time before digital money becomes mass adoption.
3. Blockchain in Supply Chain Optimization
The Supply Chain grapples with many problems and struggles with paper-heavy processes. Interconnecting goods flow and logistics are one of the main issues. It is especially challenging with a global supply chain involving cross-borders, making the work of logistic and partner logistic people difficult.
Optimized supply chains are not just about cost-optimization of goods shipment. It helps create a uniform system, mapped as a digital twin and stored permanently in a secure, distributed database.
As a distributed ledger, it is easy to record and store large volumes of data and grant access to every single detail to a predefined target group. All transactions happening between different parties are stored on the central ledger.
It is one of the upcoming changes in supply chain optimization after there have been huge disruptions because of disrupted networks and supply-demand since pandemic times.
4. Blockchain for Decentralized Exchanges
Decentralized Exchanges represent the counter-movement to the traditional financial market. They are private in nature, which is not without risk, and operate more confidentially, as a user’s personal data only goes to the person they sold to or bought from. This brings in credibility and transparency concerns for different partners.
Blockchain can solve exactly this. The hosting of cryptocurrency exchanges is the responsibility of the nodes present in the network in a distributed manner. Decentralized Exchanges are one of the Blockchain Trends in 2023, as the traffic and cryptocurrency trading volume is increasing monthly.
5. Interoperability Between Blockchains
Interoperability is the ability of systems or technologies to act among themselves without restrictions. Building such a system ensures sharing of data regardless of manufacturer. However, it is difficult because of the limited options for combining or connecting the platforms across interfaces.
A basic Blockchain Framework for the rapid transfer of assets could streamline processes. Blockchain Interoperability is at the top of the list of technical innovations for many well-known companies. Accenture, IBM, SAP, Oracle, Microsoft, and Fujitsu are just a few global players working on using blockchains without barriers.
Today many IT and non-IT companies are shifting their processes to Blockchain. Even Different Types of Government, including the Democratic Indian Government, are working on establishing blockchain-like ledgers for documentation in real estate, government quality certificates, education certificates.
In addition, there will be a huge change in the near future when the projects are implemented and various processes are simplified with digitization. Documents that have to be verified directly or through third parties will be totally unnecessary as various processes in businesses, and the Government will be seeing blockchain implementations.
It also allows sharing of data between different business entities or companies, saving a lot of time and effort. If blockchain technology is adopted into various processes, there will be no more concern for credibility, trust and security in the coming years.
Frequently Asked Questions
How Safe is Blockchain?
Blockchain having a decentralised system has a strong defence from hacking as it would be difficult for a hacker to hack the entire chain. It is a solid, transparent system and hence, it is hard to be tampered with. However, like any system, blockchain can also be hacked.
Is Blockchain the Future?
Blockchain is quite possibly the future as it has applications in many industries. It can simplify many processes, prevent fraud and add transparency. It is already used in small processes, government bodies, and supply chains.
Which is the biggest Blockchain Company?
As of today, IBM is the biggest company using blockchain in its systems. IBM has invested over $200 million in R&D to integrate ledgers and the IBM cloud. However, it is not only IBM, there are many other companies increasing adopting blockchain into their systems.