Blockchain is the tool for an equitable, user-centric, and community-oriented future. In the 15+ years since Bitcoin’s invention, the technology has fueled cutting-edge innovations across sectors.
From finance to gaming, it enables digital-native systems that blur the boundaries between physical and virtual realms. This unlocks novel ‘worlds’ where individuals are genuinely free and self-sufficient, with unforeseen modes of interaction, collaboration, and revenue distribution.
But despite its life-changing potential, blockchain tech has often remained inaccessible to the masses. Besides technical complexities, jargon-heavy resources are to blame.
To fix that, here’s an informative yet simple primer on the 7 most promising blockchain tech buzzwords for 2024.
1. Autonomous Worlds
Blockchain technology heralds a transformative era with its capacity to foster Autonomous Worlds, where grassroots entities hold the power to establish and govern their own rules. This paradigm shift heralds a new level of digital autonomy and asset ownership, unparalleled in over four decades of Internet history.
Current discussions around user autonomy and privacy often center on the concept of self-custody of private keys. These unique cryptographic codes are essential for accessing on-chain digital assets, encapsulated in the popular adage, ‘Your keys, your crypto’. However, true autonomy — and consequently, privacy — extends beyond the mere possession of private keys. It encompasses having control over the fundamental logic or ‘digital physics’ that governs on-chain systems. This control empowers entities to define what constitutes their digital world and what does not.
Owning private keys is just the beginning. It signifies a broader authority in decision-making within Autonomous Worlds. Here, individuals are not merely key holders; they become central figures in shaping their digital futures. This represents a significant leap towards a more empowered and decentralized digital existence.
Autonomous Worlds operate on blockchain substrates with distinct features and existence independent of human belief. In these digital worlds, blockchain technologies enable anyone to observe and reach a consensus about their state. These worlds persist as long as there’s participation in the digital consensus.
2. ZKSync
While Autonomous Worlds represent the holistic ideal shaping the digital future, other enabling techs are set to cause ripples in 2024. ZKSync is one of them.
Balancing scalability, security, and decentralization has been one of the most persistent concerns in the blockchain space. Ethereum, for instance, handles about 20-30 transactions per second as of December 2023. This hinders mass adoption and transaction costs rise up to $40-$50 as a result during peak traffic.
Past attempts to solve this problem have led to security or decentralization trade-offs. ZKSync, however, provides a solution to scale blockchain systems using Zero-Knowledge Proofs for speed, privacy, and decentralization at once. It also boosts cross-chain compatibility, giving users more options to enter and exit ecosystems at low costs.
3. Programmable Cryptography
Bitcoin — the pioneering blockchain known for its primary functions as a store of value and facilitator of peer-to-peer payments — laid the groundwork for future blockchain innovations. However, as the blockchain industry evolved, a demand for more versatile and multifunctional systems emerged.
Programmable Cryptography emerged in this context. This advanced field goes beyond basic cryptographic functions, allowing developers to create complex, layered solutions on blockchain platforms. Key elements such as Zero-Knowledge Proofs play a crucial role in this. They enable enhanced privacy and security while reducing the computational and financial costs associated with transaction verifications.
Programmable Cryptography has opened doors to a plethora of innovative applications, particularly in enhancing privacy and security on the blockchain. For example, attendees at the recent ProgCrypto conference registered their attendance without revealing any personal information with ZuPass, an open-source tool using programmable cryptography.
4. Rollup-as-a-Service (RaaS)
Like zkSync, Rollup-as-a-Service (RaaS) is another scaling solution that helps blockchain systems achieve greater throughput at lower costs and optimal security. Rollups, a key component of RaaS, function by aggregating multiple transactions into a single consolidated bundle. This bundle is subsequently verified and recorded within the blockchain’s on-chain database. Operating as a Layer-2 technology, RaaS seamlessly integrates with the foundational blockchain layer (Layer-1), thereby augmenting its efficiency without compromising the inherent security protocols.
The strategic advantage of RaaS lies in its versatility and economic feasibility, particularly beneficial for new blockchain projects regardless of their scale or domain specificity. Notably, RaaS platforms often offer a selection of rollup strategies, such as zero-knowledge rollups and optimistic rollups, each presenting unique benefits in terms of transaction speed, security, and cost-effectiveness. This diversity in rollup methodologies enables project developers to choose an optimal solution tailored to their specific requirements.
Furthermore, RaaS not only provides essential infrastructure elements but also supports extensive customization options. This flexibility is crucial for burgeoning projects aiming to achieve a harmonious product-market fit, while simultaneously ensuring an enhanced user experience.
5. Account Abstraction (ERC-4337)
User experience has been top of the mind for blockchain developers through the recent market downturn and negative events. Account Abstraction (ERC-4337) gained popularity in this context, providing an easy and user-friendly way of interacting with Decentralized Applications (dApps).
Distinct from traditional blockchain account models, ERC-4337 enables the utilization of smart contract wallets instead of the conventional externally owned accounts (EOAs), fostering a more secure and private environment for managing digital assets. A key innovation of ERC-4337 is its ability to obscure the inherent technical complexities associated with Web3 wallets, thus streamlining the user experience for a broader audience. This abstraction not only simplifies the operational process for end-users but also enhances the overall accessibility of blockchain technology.
Moreover, Account Abstraction makes it easier for developers to write custom smart contracts for various purposes. It can thus be a massive adoption driver for blockchain systems in 2024 and beyond.
6. On-Chain Everything
It’s a full circle from Autonomous Worlds to “on-chain everything.” With tokenization on the rise and the risks of off-chain processes, there’s a growing demand for blockchain systems to be fully on-chain.
One might see this as a maximalist view, but they cannot deny the merits of such visions. While it’s not possible, technically, to put everything on-chain right away, it’s an ideal to strive for—like the perfect autonomy envisioned (and enabled) in programmable Autonomous Worlds.
With the steady pace of ongoing innovations at both primitive and application levels, it’ll indeed soon be possible to handle most (if not all) core processes on-chain. That’s a goal most industry stakeholders are focused on right now, as they will be in 2024.
7. DePIN
“DePIN”, short for Decentralized Physical Infrastructure Networks, stands out as one of these groundbreaking buzzwords. It encapsulates the growing intersection between decentralized digital technologies and physical infrastructure systems. Imagine a future where the very fabric of our daily lives – from the map we use, the energy that powers our homes, to the internet that keeps us connected – is smartly intertwined with the reliability and transparency of blockchain technology. This is what DePIN promises: a decentralized, efficient, and more democratic way of managing and benefiting from our physical infrastructure.
Rather than relying on central authorities for the management of these resources, DePIN enables a collaborative approach. Everyone can play a part in how these resources are used and managed. The integration of smart contracts and IoT (Internet of Things) technology in DePIN systems makes this possible, allowing for seamless operation and innovative solutions to age-old problems of infrastructure management.
Read Also: Unprecedented Surge of Real-World Web3 Use Cases: Alchemy Report
