Do you know about Blockchain? Is Blockchain a trusted approach? As we know several alternative cryptocurrencies enter the market rapidly after launching the bitcoin in 2009. With the help of blockchain technology.
The blockchain is a separate distributed database of unchanging records. Blockchain technology was discovered after the invention of Bitcoins. It is compatible with other business applications and secure. Bitcoins is the first cryptocurrency. Despite this is a trustable approach and a lot of companies in the current era are using bitcoins.
In this guide, we will discuss what is blockchain and its different types. And also, we will tell the information about the Top Blockchain Technology trends in 2023. This article will be very interesting.
What is Blockchain Technology?
Blockchain is a distributed database that is an unchangeable record. We can’t also do undo. It maintains a frequently expanding list of records, that is called blocks. These blocks are attached by using cryptography. Every block contains a long chain because is attached to previous blocks like a timestamp, and transaction data.
Type Of Blockchain Technology
Three main types of blockchain technology are usually used:
- Public Blockchain
- Private Blockchain
- Consortium Blockchain
Every type of blockchain has its benefits, drawbacks which we will briefly one by one.
Public Blockchain
This is the first type of blockchain technology. it helped to promote Distributed ledger technology(DLT). It takes away the problems that generate by centralization, such as less security and transparency.
Distributed ledger technology(DLT) does not store information in any one place. It is just distributed across peer-to-peer networks. A public blockchain is unrestricted and permissionless, and everyone can access it easily with the help of the internet can sign on to the blockchain platform. Anyone can take easily authorize a node.
Advantages
- Completely independent of an organization
- Network transparency
- Public blockchains are mostly secure
Disadvantages
- It is a slow network
- Anyone can easily access through internet and use it
- Don’t scale well
Private Blockchain
A private blockchain is the second type of Blockchain Technology. This type is secure because everyone can work in a restrictive way like a closed network, or it is controlled under in single entity. This is a private blockchain.
Private blockchain technology is much smaller scale as compared to public blockchain while public blockchain is peer-to-peer connection. No one can able to access easily the internet in this type of blockchain because it can work in a small network inside the company or organization. A private blockchain is also known as a permission blockchain.
Advantages
- It is a permission level
- Under the control of the organization
- Security level
- Authorization and accessibility
- Work very fast due to limited size
Disadvantages
- Controversial claim
- Users can not independently confirm it.
3. Consortium blockchain
This is the third and last type of Blockchain Technology. It is a hybrid blockchain because it has public and private blockchain features. It is different in the way that numerous organizational members are corporate on a decentralization network. As we can say, this is a federated blockchain
Consortium blockchain works like a private blockchain that limits access to the specific group and removes the risk. The agreement procedures are controlled by present nodes.
Advantages
- More secure
- Scalable
- Efficient
Disadvantage
- Less transparent than public blockchain
Top Six Blockchain Technology Trends and Prospects
The possibilities and opportunities on both levels of an economy and business that the blockchain industry has opened up a whole new world. We should all be thankful for its security and privacy-enhancing abilities.
So, what are the top blockchain technology trends in 2023? Let’s have a look.
- Value chains
- International Trade
- Decentralized Finance and Banking
- Cryptocurrencies and Online Payment Systems
- Increased Adoption of blockchain by enterprise
- Increase Development Of blockchain-based Applications
1. Value chains
Blockchain technology provides one of the best facilities for traceability that trace across whole the supply chain. Meanwhile, blockchain can store data in a digital decentralized ledger. They offer rapid access to the status or authenticity of the product.
This improves efficiency, confirms reliability, and makes a global value chain of good
2. International Trade
Smart contracts are an important factor of the blockchain ecosystem that most businesses have expanded to adopt. It makes simpler documents including licenses and certificates, and many more. While removing the reliability of the third parties by reducing the overall cost.
Moreover, it enhances the speed and accuracy in the conduct of international trade.
3. Decentralized Finance and Banking
Instead of paying specific charges or fees using banking services, small contracts in decentralization finance that it is involves holding the money in a secure digital wallet. This application of blockchain technology can prove the best future of finance.
4. Cryptocurrencies and Online Payment Systems
Its main purpose is to eliminate the participation of centralized authorities like banks. It is using both cryptos and blockchain payment systems for storing transaction data on peer-to-peer networks.
It lower transaction costs improves security, and generates greater demand for the high-performance system with shorter transaction time.
5. Increased Adoption of blockchain by enterprises
One of the most important blockchain trends in 2023 is the development of enterprise operations that depend on blockchain. This improved security, transparency, and protection from cyber-attacks by using the blockchain nature of decentralized. That’s why most companies and organizations use this technology for their benefit.
6. Increase Development Of blockchain-based Applications
This is also the most important blockchain trend in 2023. This will also be increasing the great demand for software developers with blockchain expertise in 2023.
There will be growth in the requirement of blockchain technology that can help in the construction of the prevailing application to carry out secure transactions, it is necessary to develop customer relations and improved Know Your Customer (KYC)features and many more.
Conclusion
In this article, we discussed the introduction of blockchain technology trends in 2023, what is blockchain technology, and discussed trust issues. Furthermore, I mentioned the blockchain types with explanations and their benefits, and drawbacks.
And also we have seen the top six trends of blockchain technology in 2023 with briefly.
Waqas Mushtaq is the founder of Tech Orage which is a prominent digital marketing agency based in Pakistan Since 2010.
He is a professional Freelancer who has completed successfully 400+ projects of website development & Digital Marketing (SEO – Google First Page Rankings).
