7 Blockchain Trends Shaking Up Industries in 2024
Blockchain has been evolving since its inception in 2008, and over 15 years later, its full utility is still being uncovered. As we enter 2024, the strong foundations laid for the industry in years gone by will come to fruition, and we expect the next 12 months will be the era of realization of the true potential of blockchain.
7. Increased Regulatory Clarity
Technology always outpaces regulation and it’s no different with blockchain. Far from being a burden, strong regulatory foundations are what most businesses looking to adopt the technology and financial institutions looking to bolster the industry are looking for.
Establishing technical standards for blockchain is also crucial in ensuring the security, reliability and future innovation of the industry, enabling not only trust and sustainable growth, but also interoperability, which is crucial for real-world adoption.
We’ve already begun to see some momentum here: in October 2023, the UK government confirmed plans to introduce formal legislation for crypto activities in 2024 and, the EU announced the Markets in Crypto-Assets Regulation (MiCA), which seeks to support market integrity and financial stability by regulating public offers of crypto-assets and ensuring consumers are better informed about their associated risks.
We predict 2024 will bring even more movement towards the implementation of additional regulation that will spearhead the widespread adoption of blockchain technology.
6. Asset Tokenization and NFTs
Blockchain has changed how we understand and manage ownership. By enabling the digital tokenization of real-world assets, from stocks to artwork, blockchain has created transactions like fractional ownership, enhanced liquidity, and programmable smart contracts that grant access to small businesses or individuals who were previously priced out of certain investments.
2024 holds immense promise for the future of tokenization, with traditional finance titans such as JP Morgan developing tokenized funds.
In particular, the real estate sector, which has traditionally been complex and slow-moving, could see a significant acceleration via tokenization in 2024.
This stands to make investing more accessible and bring new liquidity into previously rigid markets. Entirely new generations of investors will begin to tap into the possibilities of tokenization and breathe new life into legacy markets. With new institutions and assets will come new payment rails, as well as the requirement for industry-wide standards that make all of these products and markets interoperable.
This will not only demonstrate the power and utility of tokenization, but will also foster the trust that is a key driver of demand.
Similarly, non-fungible tokens (NFTs) have been seen as a way to provide additional revenue to artists, gamers, and athletes.
Grammy nominated EDM duo Disclosure, recently remixed their song, “Simply Won’t Do” into unique NFTs for fans to own. Learn how in our newsroom.
5. Widespread Financial Adoption
Financial applications were amongst the earliest adopters of blockchain with Decentralized Finance (DeFi). DeFi challenges traditional centralized financial systems by empowering individuals with peer-to-peer transactions.
While DeFi has seen some notable adoption so far, it’s largely been on an individual scale. But 2024 looks like the year where we’ll start seeing wide-spread adoption into conventional financial systems.
The year started with a bang, with the US Securities & Exchange Commission (SEC) blessing Bitcoin exchange-traded funds (ETFs). Just three days after the announcement, Bitcoin ETFs have seen net inflows near $1 billion, with industry giants like BlackRock leading the pack – signaling that institutional players are realizing the true potential of the technology for the financial sector.
At the same time, Central Bank Digital Currencies (CBDCs), a digital form of a country's fiat currency issued and fixed by its central bank, are set to take off this year, with countries like China, India and Indonesia looking to introduce CDBCs in the hope of greater financial inclusion and easier transfer of remittances. CDBCs provide access to the financial system for those currently unbanked or underbanked by providing faster and more cost-effective transactions compared to traditional cash or card payments.
4. Telecommunications
Blockchain is continuing to find key use cases outside of finance.
Blockchain use in telecoms for clearing and settlement will continue to grow in 2024 as operators, large and small, seek to verify and bill for mobile roaming transactions while also spotting usage anomalies that indicate fraud.
Larger operators are anticipated to invest in modernizing their clearing and settlement platforms with blockchain technology.
By connecting with the Aventus BaaS network, customers of Vodafone’s digital asset broker (DAB) interoperate with trusted blockchains in a secure way using the DAB identity passport. Read more about this Aventus success story on our website.
3. Supply Chain Management
The efficiency blockchain offers the supply chain industry is undeniable. Tracking every product from origin to end user on a transparent and immutable blockchain ledger has optimized logistics. Doing so has led to faster deliveries and lower costs. And tamper-proof records make fraudulent activities virtually impossible and transparency between organizations becomes a way to build trust.
Read more about how Heathrow Airport updated its aircraft cargo management system with blockchain to provide real-time data across various organizations.
2. AI and Blockchain Team Up
Blockchain and AI find themselves intersecting in significant ways in 2024.
Individually, they have majorly impacted various industries and societal interactions. However, their convergence opens up a whole new era of possibilities, with blockchain bringing higher trust, transparency and security to the vast potential of AI.
Despite generative AI‘s potential, it’s hindered by a “black box” problem – when an AI generates false information, understanding and correcting the root of that false information is so challenging that it is a significant inhibitor to mainstream adoption of this powerful technology.
Blockchain offers the most cost-effective and tamper-proof way to inject visibility and unlock version control in AI systems, emerging as a critical guardrail that AI systems have been lacking to date, enabling more responsible AI standards and innovation.
For one, the partnership is beefing up cybersecurity with blockchain ensuring data integrity while AI detects and responds to threats.
The fusion of AI and blockchain can potentially revolutionize supply chain logistics, healthcare, and cybersecurity, among other areas.
1. Blockchain-as-a-Service (BaaS)
Number one on our list is the maturation of blockchain into a service. As businesses increasingly observe the vast applications and benefits of blockchain in their industries, they’ll seek to leverage the benefits without the complexities of managing it.
Similar to the software-as-a-service model, BaaS is a cloud-based solution that allows businesses to implement blockchain applications without having to build or maintain the underlying infrastructure themselves.
We expect that, similar to the emergence of other significant technologies, like the internet or cloud computing, blockchain will be less about the specific blockchain a business uses, and more about the end results it desires. This means that there will be an increased emphasis on seamless interoperability between blockchains, to allow businesses to leverage the benefits of a range of networks with different strengths or qualities.
The Year of Blockchain
2024 promises to be a pivotal year for blockchain. Expanding beyond niche applications and establishing its footing in diverse industries. From regulatory clarity fueling innovation to BaaS enabling easy adoption, the landscape is ripe for disruption.
Is your business ready to harness the benefits of blockchain? Stay ahead of the curve by exploring how Aventus can empower you to leverage blockchain's limitless possibilities in your industry.
