Hottest Blockchain Trends in 2024

Trend 2: Transparency in the Supply Chain

The supply chain industry is currently facing a number of challenges. Accounting systems lack the capability to handle a large number of transactions, correcting mistakes takes too much time and money, products spoilage in the process of transportation leads to enormous financial losses, transportation costs a lot of time and bureaucratic effort, which in the end results in fraud and causes a lot of errors. Such complexity of tasks and challenges of modern supply chains require a systematic and secure approach offered by blockchain technology.  Let’s see the most common applications of it.

• Blockchain allows the creation of a cloud-unified digital management system to track the cargo location in real-time. Walmart already uses this to supply certain products and the largest chain retailer in North America plans to move all food supply chains to the Food Trust blockchain developed by IBM.
• Tracing the origin of goods from a store to a specific location is also possible through leveraging blockchain technology. Each batch of goods is equipped with a tag that continuously monitors the location of items and interactions among participants in the supply chain.
• Blockchain technology also helps automate most of the workflow and business processes through the usage of smart contracts. It will significantly reduce errors, detect fraud, and speed up the delivery of goods. Maersk, for example, partnered with IBM to launch a logistic system based on the Hyperledger Fabric blockchain named TradeLens. The system tracks shipping freight traffic and exchanges customs and financial information between supply chain participants.

You can find out more about blockchain adoption in supply chain management in our article.

Trend 3: Decentralized Finance and Banking

Both banks and their customers already greatly benefit from blockchain technology. First of all, blockchain networks with decentralized and transparent digital ledgers are much safer than traditional ones. Nobody has access to private financial information and the ability to modify it apart from its owner. When identity management is run with blockchain technology, users can choose how to identify themselves and with whom to share their information. 

Blockchain in fintech enables users to use a digital fingerprint scanner that can be stored on a distributed ledger and securely used by any bank in the network.

Blockchain as a service also significantly cuts down on transaction fees and eliminates delays in worldwide payments. The transaction doesn’t imply any fees and currency exchange losses so it’s much cheaper than traditional international transactions.  

McKinsey states that blockchain solutions for fraud detection, regulatory compliance, and onboarding can also significantly save banks’ costs. 

Trend 4: Popularization of Cryptocurrency

Blockchain is the technology that enables the existence of cryptocurrency. Currently, cryptocurrencies are gaining more attention from investors, governments, and regulators. The most widely known representative of a relatively new form of digital currency that is shifting the paradigm of the financial industry, Bitcoin, has already become a global phenomenon. 

According to a survey held by Deloitte, 53% of respondents stated that blockchain technology was a critical priority for their organizations while 83% saw compelling use cases of the technology. 

What are the characteristics of cryptocurrencies that drive their popularity and exceedingly increase the demand for the technology they are based on?

• Transparent transactions allow users to track any changes that have been made.
• Decentralization eliminates the possibility of tampering with blockchain without the agreement of all participants.
• No need for financial intermediaries in money transactions. Even large sums of money can be transferred across international borders within a few minutes.

Trend 5: Ricardian Contracts 

The Ricardian contract was invented in 1996 as a method of recording a document as a contract at law, and securely linking to other systems. It’s capable of placing all data contained in the legal document in a format that can be expressed and executed by software. 

The main aim of the Ricardian contract is to make the document format both machine-readable for computational purposes and also readable as a regular text document for contracting parties. The biggest advantage of the Ricardian contracts is that they are built with the help of blockchain technology which makes them completely transparent. The risks of fraudulent actions can be minimized as references to specific data are done through cryptographic hashes. 

As a result, Ricardian contracts are predicted to gain greater popularity in the near future and can be definitely listed among the latest trends in blockchain technology.

Trend 6: Central Bank Digital Currency (CBDC)

The emergence and streamlined evolution of cryptocurrency and Blockchain technology has sparked increased interest in cashless societies and digital currencies, prompting governments and central banks around the world to investigate the potential of issuing government-backed digital currencies.

One of the latest trends in Blockchain technology became central bank digital currencies. Many countries are developing their own CBDCs and some have even already implemented them.

CBDC is similar to cryptocurrency but its value is fixed by the country’s central bank and is equivalent to the country’s fiat currency. They aim to reduce the amount of upkeep needed for a complex financial system, lower the costs of international transactions, and offer more affordable alternatives to those who use other money transfer methods.

Central bank digital currencies also could reduce the risks of using highly volatile cryptocurrencies. Backed by the government and controlled by a central bank, CBDCs would provide businesses and consumers with a more stable means of exchanging digital currency.

Trend 7: Blockchain in Healthcare

Secure data sharing and tracking prescription drugs and other medical goods in the supply chain and delivery are among the major challenges in digital healthcare. It’s no surprise that many organizations are trying to improve these processes with the help of Blockchain technology.

First of all, Blockchain-based solutions for healthcare records are based on secure encryption techniques that control the integrity of patients’ information when communicating with different parties. Secondly, tokenization and smart contracts have the potential to massively reduce the pre-authorization process, allowing patients to get the required care more efficiently. Thirdly, the existence of a decentralized platform will make medical records owned by patients, allowing them to use these records anywhere in the world. Here are more examples of Blockchain development trends in healthcare:

Blockchain technology has the potential to complementary transform the healthcare industry, increasing security and placing patients in the center of the healthcare ecosystem. Therefore, active implementation in healthcare is for sure one of the Blockchain trends in 2024.