Some say Web3, with its decentralized database and blockchain-based apps, provides the solution. This increases privacy and security, and takes back control and ownership of your data. At least in theory, cryptographically secured Web3 tools and technologies are beyond the control or censorship of any single entity, including big tech or governments.
Although 2023 has been overshadowed by the buzz around generative AI, the next generation of Web3 apps and technology continues to be developed. Will 2024 be the year these innovations go mainstream? Let's explore the trends that will shape the trajectory of the next 12 months and beyond.
Blockchain and Web3 sustainability
At the top of the list of concerns would be the fact that blockchain and Web3 technologies clearly have sustainability issues. Computing using distributed, encrypted resources simply consumes a lot of energy. At its peak in 2022, Bitcoin willBTC 0.0% It is estimated that the network alone consumes as much energy as Finland. In response, more efficient technologies such as Ethereum emerged.Ethereum 0.0% Network proof-of-stake algorithms were developed and the Green Web3 initiative emerged. rehabilitation financeFor example, it has emerged as a way to leverage technology for environmental and sustainability efforts.
social web 3
Web3 promises decentralized social tools, which advocates argue will keep users in control of their content and data, leading to more private and uncensored communication and networking. Transparent, open-source algorithms could help track and block attempts to spread disinformation, with policies democratically controlled through blockchain-based voting mechanisms. He'll probably have to look beyond 2024 to see something like this challenge the likes of Facebook and TikTok. However, things like social tools, mastodon Services built on decentralization principles are already emerging and growing in popularity, so we expect to see continued innovation in this space.
Bitcoin bull market?
Cryptocurrency plays a big role in Web3. It is no coincidence that many of his Web3 projects fail when the price of Bitcoin collapses and funding dries up. A new Bitcoin will appear in 2024 cut in half This has traditionally increased the value of the number one cryptocurrency. Of course, I don't want to make any financial predictions, but if that happens, it's inevitable that there will be an injection of money and enthusiasm into Web3.
Decentralized finance (DeFi)
Decentralized finance (DeFi) is a term used for an emerging class of financial services products built on blockchain and Web3 technologies. These are often built around his Web3 capabilities that enable peer-to-peer commerce and lending while bypassing “middleman” banks and financial institutions that charge high fees. These products have attracted investment in recent years and will be more available than ever in 2024.
Web3 and the immersive internet
Call it a “metaverse” if you like. However, many of the ideas in Web3 are inherently tied to the concept of immersive online environments that mirror the real world. Web3 and blockchain technologies are being applied to the creation of unique digital assets through online identities (such as avatars) and NFTs. It can also be used to govern and manage online entities, from community groups to businesses, allowing members to democratically elect representatives and vote on passing rules and regulations. One easy prediction to make is that the web will continue to evolve to become more immersive in 2024, but we'll also have a better understanding of what Web3 will bring.
Central Bank Digital Currency (CBDC)
These are essentially cryptocurrencies issued by central banks. Obviously, they are under the control of the issuing bank and are therefore not decentralized. And that can't be true! Instead, a CBDC can be thought of as an attempt to move the technology used to manage financial services onto blockchain infrastructure, allowing them to be managed more efficiently and transparently. China plans to continue piloting a digital yuan in 2024, joining other countries such as the UK, Bahamas, Nigeria, and Sweden that have launched or discussed plans for CBDCs.
Serious fraud and other crimes
There's no getting around the fact that many scammers and criminals have become famous (and often made a lot of money) in the world of cryptocurrencies that power Web3. FTX collapse and fine payment Binance If the industry continues to grow at the pace some expect, this year could be just the tip of the iceberg. With lawmakers dragging their feet, the industry still has a Wild West feel. So please be careful if you plan to get involved.