In simple terms, blockchain refers to a digital database containing information that can be simultaneously used and shared within a special network. A blockchain is a distributed ledger with growing lists of records (blocks) that are securely linked together via cryptographic hashes. The blocks that are connected to each other form a chain of transactions that cannot be changed or altered. Each block contains transaction data and a cryptographic hash is used to validate and secure it.
Blockchain was officially introduced in 2009 with the release of its first application, the Bitcoin cryptocurrency, but its roots reach back several decades. Indeed, many of the technologies that form the basis for blockchain today were in the works long before the emergence of Bitcoin.
The technology has many potential uses in various sectors beyond finance, including logistics, health, agriculture, and entertainment.
Blockchain was officially introduced in 2009 with the release of its first application, the Bitcoin cryptocurrency, but its roots reach back several decades. Indeed, many of the technologies that form the basis for blockchain today were in the works long before the emergence of Bitcoin.
The technology has many potential uses in various sectors beyond finance, including logistics, health, agriculture, and entertainment.
1. Increased Adoption of DeFi
DeFi, or Decentralised Finance, is a blockchain-based financial service that operates without a central authority.
In recent years, there have been fluctuations in DeFi total value locked (TVL), which hit more than $100 million in November 2021. Currently, in 2024, there will be approximately $55.95 billion of TVL in DeFi.
The increased adoption of DeFi makes it the leading trend to monitor in 2024.
2. Expansion of Blockchain in Supply Chain
In supply chain management (SCM), blockchain is used to ensure security, transparency, and efficiency. It is used to record, encrypt, and lock transaction data in blocks with cryptography, hashing to connect each block, decentralised systems, and product tracking from end to end.
In this way, it brings security, transparency and automation to the supply chain, helping companies to increase operational efficiency and providing certainty to all parties involved in the SCM process.
3. Blockchain for ESG Reporting
Blockchain is more than just cryptocurrency. It can give access to create, oversee, and report environmental, social, and governance (ESG) projects. The technology automates reporting, maintains records, and provides more detailed environmental impact reports. Customers, managers, and investors now have more insight into a company’s workings because of blockchain.
4. Cross-chain Interoperability
Cross-chain technology, or interoperability on blockchain, is a key new innovation. This technology introduces a mechanism that offers direct interaction across different crypto networks.
Through interoperability, various decentralised systems and applications can work together, and interact directly through a protocol. Interoperability is important because it offers a more sophisticated form of the entire blockchain ecosystem.
5. Blockchain in Digital Identity
Apart from other blockchain technologies, digital identity management and verification is one of the most promising applications for blockchain technology. Additionally, it allows us to control our own digital identity worry-free, and provides secure management and storage.
6. Tokenisation of Assets
Tokens are digital units (crypto) issued on top of the blockchain. Furthermore, the values of tokens are based on their specific function and can be exchanged for assets, such as gold, property, and shares. In blockchain technology, you can turn your assets into digital tokens and distribute them easily within the network.
7. Regulatory Advancements
Since rising in 2013, blockchain technology has been constantly evolving and developing. The technology is transforming regulatory compliance. The focus is still the same—transparency, security, and efficiency—to offer a more satisfying and efficient service to all users across the globe.
To keep up with all of the emerging tech trends read the latest issue of Interface Magazine here
- Blockchain
