The internet is currently in the process of evolution due to the integration of web3 technology that will alter its procedures. At the start of the year 2024, several Web3 technologies are expected to come to fore which hold new possibilities and implications for developers and users of the web. In this blog, we have discussed the prospective Web3 technologies for the year 2024 and how things are likely to change.
Blockchain Protocols
Blockchain fills the center of Web3 technology as a decentralized ledger that ensures that everything is transparent, safe, and can be changed once it has been recorded. In 2024, several blockchain protocols are leading the charge in offering scalable and efficient solutions:In 2024, several blockchain protocols are leading the charge in offering scalable and efficient solutions:
- Ethereum 2.0: Succeeding the basic Ethereum network, Ethereum 2. 0 brings in a proof-of-stake consensus system, which brings in the scalability factor, and also decreases energy consumption. This spending is necessary as more dApps and transactions are becoming more common to be handled by the network.
- Polkadot: Polkadot allows different blockchains to connect so that users could promptly exchange and transfer their data and assets across these chains. Due to its revolutionary take on scalability and security, it plays a significant role in the functioning of Web3.
- Solana: Given the relationships it maintains, low TPS, and transactions cost, Solana is increasingly being used by developers seeking to deploy fast and efficient dApps. Consequently, it can be said that it performs well enough to severely challenge various mainstream cryptocurrencies for a bigger share of the market.
Smart Contracts
Smart contracts mean self-executing contracts, and as the contract details are coded in digital language, the contract execution does not require any middleman.
- Automation: Smart contracts eliminate the possibility of human influence, which may lead to errors that hamper work flow in an organization. It is especially helpful for professions in finance, supply chain management, logistics, and construction.
- Security: Smart contracts, when built on a blockchain, acquire the protection abilities of the network they are based on, and cannot be easily altered or falsified.
- Transparency: The details of all transactions involved and the contracts agreed are implemented in the blockchain composing a sequentially numbered record with full visibility.
Decentralized Finance (DeFi)
DeFi is a revolutionary concept in the conventional method of financing where users can fund themselves directly through the blockchain minus the middlemen.
- Uniswap: A decentralized exchange (DEX) that enables buyers and sellers to engage in P2P trading of cryptocurrencies from their smart wallets. Using an AMM as a replacement for standard order books minimizes dependence on their effectiveness while providing liquidity.
- Aave: A lending/borrowing marketplace in which users demand or supply specific coins and tokens and earn interest on their deposits or borrow money based on the deposited assets. There are so many fundamental unique factors of Aave such as flash loan, and rate switching.
- Compound: Yet another popular DeFi platform that provides the user with an opportunity to lend coins and borrow them in turn. Compound’s algorithmic interest rate mechanism was dependent on supply and demand for the loans disbursed.
Non-Fungible Tokens (NFTs)
NFT is currently a virtual currency that enables the use of tokens to represent the ownership of unique items or pieces of content in art, music, gaming, and collectibles.
- OpenSea: The venue that provides opportunities to create, purchase, and sell tokens, as well as trade them for various types of assets ranging from art pieces to plots of digital land.
- Rarible: The idea is to have an NFT marketplace without centralized control that will enable artists to create, buy, and sell digital assets. It has a comprehensive system that offers its users a chance to take part in making decisions about aspects of Rarible through the RARI token.
Decentralized Autonomous Organizations (DAOs)
DAO stands for Decentralised Autonomous Organisation – an entity that can operate based on pre-programmed code instead of following conventional organizational reporting.
- MakerDAO: Popular for its Stablecoin known as DAI, MakerDAO enables users to mint and manage this stablecoin through the Decentralized governance system.
- Aragon: A space through which users can build and administer DAOs. Aragon’s tools make it easier to deploy DApp LaaS and to manage the running DApp LaaS.
Interoperability Solutions
As more new blockchains are created, the need to integrate these different networks becomes essential for blockchain interconnectivity. undefined
- Cosmos: Dubbed the ‘Internet of Blockchains,’ Cosmos allows different blockchains to interoperate with one another, integrating their related functions into an interconnected system.
- Polkadot: Putting aside the fact that its relay chain is designed to scale, Polkadot is a network that puts multiple blockchains in coordinated communication so they can share data and capabilities.
Decentralized Storage
Decentralized storage solutions offer a more secure and reliable alternative to traditional centralized systems, addressing issues like data privacy and control:
- IPFS (InterPlanetary File System): A P2P environment that organizes users in a decentralized manner to store and exchange data in a distributed file system. – IPFS reconstructs the relationships and structures of the web in a more decentralized way, thus reducing their dependencies on major servers.
- Filecoin: Launched on top of the InterPlanetary File System, Filecoin employs cryptographic protocols to make a storage marketplace with people’s idle hard drive space purchasable using cryptocurrency.
Oracles
- Chainlink: Chainlink is the largest decentralized oracle network which has the mission of ensuring that smart contracts are able to interact and obtain data from off the blockchain.
- Band Protocol: Another is that there are instances of decentralized oracles that collect and link real-world data to blockchain-based applications for improved accuracy of data
Zero-Knowledge Proofs
Specifically, ZKPs are cryptographic solutions designed to increase privacy and protection mechanisms in exchanging values and data.
- zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge): zk-SNARKs allow confidential transactions and are incorporated in privacy-centric cryptocurrencies like Zcash.
- zk-Rollups: An example of layer 2 scaling solution that employs ZKPs to offer higher transaction speeds on chains such as Ethereum, enhancing scalability to lower the cost of fees.
Web3 Browsers
- Brave: An ad-blocking and tracker-blocking web browser that prioritized privacy and minimal data collection. Some Brave Web3 features include the support of the dApp this browser, as well as a built-in cryptocurrency wallet.
- Opera: With features like the built-in VPN and ad blocker, Opera has now added Web 3 capabilities to support dApps and users’ cryptocurrency manageability from within the browser.
Conclusion
Taken together, Web3 technology is still in its infancy, and there are so many extra opportunities that are waiting to revolutionize the way we engage with the internet environment. From blockchain and applications of smart contracts to decentralized finance, non-fungible tokens or tokenization, and decentralized storage, these innovations represent the move towards decentralization, the democratization of the web, and more personalized Internet experiences. In any Web3 development company, it is important to observe and capitalize on these trends and technologies in 2024 and onwards.
It is crucial to be part of Web3 technology development that comes with the acceptance of this new form of technology. All these technologies remain relatively new, they present themselves as perhaps the greatest mechanism for improving the stability, performance, and fairness of the digital world. No matter if you are a developer, start-up entrepreneur or a simple enthusiast – the prospects of Web3 are looking bright.