Blockchain technology has enabled a digital asset ecosystem that can change how we live, work, play and interact on a global scale. While the digital assets market unfortunately experienced high-profile collapses lately, it is essential to distinguish volatile price action, process failures and fraud by bad actors from the robust foundation. The underlying distributed ledger technology (DLT) has immense potential to propel the modern innovation of finance.
Considering the promising advancements of blockchain networks and their diverse applications and projects, here are my top three predictions to look out for in 2023:
1. There will be a more overt distinction between investing in blockchain technology infrastructure, cryptocurrencies and Web3.
Currently, cryptocurrency is the most well-known application of blockchains, but the technology’s capabilities transcend digital currencies. Blockchain technology has evolved from early roots in a single blockchain network and cryptocurrency to a diverse, ever-expanding digital assets universe. The technology gave rise to dozens of major blockchains now driving the industry (nearly 1,000 more exist), over 13,000 tokens with diverse utilities and functions, decentralized finance (DeFi), more than 4,000 decentralized applications (dApps), the exploration of Web3 and burgeoning metaverses. As more people broaden their understanding of distinct ecosystem components, there will be a clearer delineation between assets that exist purely as a medium of exchange (e.g., Bitcoin) and those that aim to leverage blockchain as a technology for real-world use cases (e.g., infrastructure, smart contracts and tokenized physical assets). This knowledge will attract token issuers like corporations and municipalities, which will usher in investment bankers, broker/dealers and investors.
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