2024 Blockchain Forecasts from Ripple, Coinbase, a16z, Starknet Experts

• Blockchain Transformation and Upcoming Trends
• 2024 Blockchain Predictions
• Interoperability
• Bitcoin Fees
• Modularity
• Zero-Knowledge Proofs
• Key Management/User Interfaces
• Censorship
• Security/Privacy
• Corporate Crypto
• Layer-2 Flows
• Layer-2 Consolidation

Blockchain Transformation and Upcoming Trends

Many innovators in the blockchain sector often feel as though they are pioneering the future financial and business infrastructure. The continuous stream of technological advancements, collaborations, product introductions, and transitions is truly impressive. Advancements in this field appear to be an ever-evolving vortex of technicality and complexity, akin to navigating through an asteroid field while trying to recognize patterns amongst the chaos. The speed of progress in the blockchain arena is consistent and consistently stunning.

Despite the inevitable unpredictability of this thriving sector, some 2023 trends were anticipated by industry experts. However, the course of this transformative technology remains largely uncertain. This article presents ten predictions for 2024 from renowned blockchain technology specialists. These insights provide a valuable glimpse into possible futures for the world of blockchain.

2024 Blockchain Predictions

Interoperability

By 2024 and onwards, the development of blockchain interoperability protocols will reshape the existing landscape by eliminating barriers between different blockchains. This shift will allow diverse blockchain platforms to interact seamlessly, enabling data sharing and value transfers, therefore creating a more efficient and unified blockchain ecosystem. Interoperability protocols will play a significant role in this transformation, facilitating innovation and the development of new applications and use cases, particularly in DeFi.

Bitcoin Fees

Given the declining fixed block rewards for miners, we anticipate an increasing importance of catalysts for raising the variable block rewards from transaction fees. Technological innovation within the existing network protocol will likely drive the usage of catalysts. This may involve increased usage of blob data, elevated activity on secondary layer 2s, or the expansion of smart-contract environments built on top of the Bitcoin$42,260 -0.64% network.

Modularity

We have observed a growing emphasis on the modular thesis and the emergence of more hybrid solutions in the market. This trend suggests a continued divergence between networks like Ethereum$2,315 -2.42%, which favor roll ups, and networks like Solana$104 5.03%, which oppose layer 2s due to perceived issues with liquidity and user experience. The unfolding of these opposing narratives in 2024, particularly as Ethereum rollups consider using the Solana virtual machine, will be intriguing to monitor.

Zero-Knowledge Proofs

SNARKs, which allow for the computation of a cryptographic receipt of a workload by an untrusted prover, are becoming increasingly viable. The development of SNARKs creates several intriguing use cases, including self-verifying IRS forms, unforgeable bank audits, and the verification of upgrades in internet of things devices, among others.

Key Management/User Interfaces

Account abstraction advancements may soon overcome the technical challenges surrounding self-custody of assets. The outdated practice of maintaining 12 irreplaceable yet inaccessible seed words for asset security is likely to become obsolete. The ability for blockchain to deliver on inclusive finance promises hinges on this evolution.

Censorship

Concerns around centralization primarily involve potential network performance issues and the risk of censorship. Significant breakthroughs in 2024 might emerge in areas such as mempool encryption, protecting transactions from potentially censorious parties before their inclusion in a block.

Security/Privacy

In response to the numerous security breaches and fraudulent activities in the crypto space, blockchain protocols are expected to increase their focus on security and privacy in the coming year.

Corporate Crypto

Networks and developer platforms should prepare to onboard corporate and startup builders, as well as independent developers. The expansion of crypto from merely an asset class to a tool for user engagement necessitates a user experience that can reach millions of end users in their native digital experiences.

Layer-2 Flows

Although layer-2 chains' activity has waned somewhat during the year, rising gas fees on the Ethereum mainnet may drive a significant portion of new capital to find a home in the Layer-2 chains next year.

Layer-2 Consolidation

Ethereum's implementation of EIP-4844, which will reduce transaction fees and improve scalability for layer-2 chains, may result in a consolidation of Ethereum L2s down to two-to-three dominant players within a year of the upgrade.

Edited by Jonathan Stoker