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CasperLabs 2023 Predictions: 5 Trends That Will Drive Enterprise Blockchain Adoption in 2023

vmblog-predictions-2023 

Industry executives and experts share their predictions for 2023.  Read them in this 15th annual VMblog.com series exclusive.

5 Trends That Will Drive Enterprise Blockchain Adoption in 2023

By Niamh O'Connell, Senior Strategist at CasperLabs

In today's vernacular, blockchain is still viewed by the majority as being tightly coupled with cryptocurrency -a volatile, uncertain realm. But blockchain is so much more than crypto.

Unlike crypto trading, business applications have been on a steady path to unlocking unprecedented value for the enterprise market. Use cases are maturing beyond hype and into a utility era. Companies are gaining a clearer understanding of just how radically blockchain can transform their operations through greater transparency, trust, and efficiency-all while reducing costs.  

The global blockchain technology market is projected to reach $1.4T by 2030, but we'll continue to see gradual changes over the next few years. Here are the trends that will shape growth specifically in the enterprise sector in 2023:  

1. Upgradeable Smart Contracts 

Smart contracts are a core feature of blockchains when we focus on utility for businesses - automating the execution of agreements once conditions are met. But what happens when conditions change? Businesses should be able to easily upgrade smart contracts using a process similar to upgrading any other software.These contracts should include advanced token standards that provide scalability, support, efficiency, and wider documentation to simplify development across token types.

2. Easier Enterprise Blockchain Development and Interoperability

Teams today use over 110 SaaS applications, compared to just seven in 2019. As teams depend on a growing number of tools, technologies must integrate to create efficiencies-not bottlenecks. A blockchain for business that's interoperable with existing technology stacks will be crucial for greater adoption. 

Not only should deployment be easy and fast, but customization and scale should also be easily achievable. In the not so distant future, developers should be able to implement blockchain by plugging into given use cases like chain of custody without the need to understand the underlying tech via updated microservices offered as part of blockchain services.

3. Value-Driven Impact 

Companies want real utility blockchain applications that drive successful outcomes, such as higher revenue, greater volumer, consumer reach or efficiency gains. Demonstrating tangible impact will drive adoption. For example, blockchain's value is already visible in areas such as asset tracking, marketplaces for high value assets like patents. IPwe, an IP  management platform, will mint over one million patents over the next few weeks alone. Similarly, NFT activations with big brands are maturing into recurring campaigns with users climbing well into the millions, combining blockchain and VR/AR technology.

4. Hybrid Blockchains 

There are advantages and tradeoffs to both private blockchains and public ones. Control, trust, and flexibility are at stake. But why should businesses have to choose between the two frameworks?. Businesses should have a straightforward avenue for transitioning data from highly configurable private networks to hybrid and public environments. Without hybrid frameworks and tools, adoption will stagnate in highly regulated industries that aim to demonstrate compliance and transparency to various stakeholders including consumers.

5. ESG Mandates 

Proof of stake is the new gold standard architectural trait in blockchain from an environmental perspective. As new standards emerge and companies increasingly prioritize ESG-more than 90% of S&P 500 companies say it's important-a more sustainable blockchain for business will be essential. Proof of stake transactions require a fraction of the energy required by other blockchains. In fact, after merging to POS, Ethereum cut down their carbon footprint by 99%

For businesses looking to operate on blockchain at scale without compromising their commitment to ESG, this more efficient model will be at the center of expanding adoption. 

A Call For Change

As blockchain for business comes into its own, one thing is becoming abundantly clear. It's time for standardization. These characteristics-interoperability, hybrid networks, etc-they're not nice-to-haves. They're essential to progress, adoption, and innovation. It's time for our industry to really develop standards that make blockchain a game-changing, cost-saving, long-term solution for business. Everything that successfully scales has standards.

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ABOUT THE AUTHOR

Niamh O'Connell 

Niamh (pronounced Neeve) O'Connell is senior strategist at CasperLabs. Niamh is a blockchain expert and has been at the forefront of the blockchain evolution since 2016. She is a co-founder of BlockW, a female-led initiative providing a platform for communication, education, and the discussion of ideas relating to careers in blockchain. Earlier in her career (2016), Niamh served at Deloitte and was a founding team member that set up and scaled the company's blockchain lab for Europe, Middle East and South Africa. She was also part of a small team that set up ConsenSys Ireland in 2018 and eventually joined ConsenSys U.S in 2020, working with Treum to build out a SaaS blockchain supply chain platform and co-lead the company's customer adoption division.

Additionally in 2018, Niamh worked on the first few production-grade blockchain applications for consumer-packaged goods and in the food & agriculture industry. Niamh was named 2018 "Blockchain Leader of the Year" at the Dublin Tech Summit and has co-authored numerous blockchain studies. Niamh holds a Bachelor of Business Studies from Trinity College Dublin and a Master of Science in Management Consultancy from University College Dublin.

Published Wednesday, November 23, 2022 12:12 PM by David Marshall
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