Key Findings
- Real-World Use Cases Blossom: The year 2023 witnessed an explosion of real-world use cases for blockchain technology. Polygon’s “Value Prop” database tracked over 300 web3-powered use cases, showcasing the adaptability of blockchain in diverse industries like finance, art, gaming, and logistics.
- Corporate Integration on the Rise: Well-established brands and institutions began incorporating web3 aspects into their platforms. Examples include Pudgy Penguins collaborating with Walmart and zkSync, WiPro deploying Falcon for supply chain management, and Franklin Templeton launching a blockchain-based U.S. Government Money Fund on Polygon.
- Blockchain Milestones: Ethereum continued its remarkable growth, with record-high Ethereum and wallet SDK installs for the fifth consecutive year. Account abstraction emerged as a game-changer, simplifying user experiences. Rollup frameworks like OP Stack, Arbitrum Orbit, and Polygon’s CDK played a crucial role, enabling more efficient settlement on chains.
- Solana’s Rapid Ascent: In Q4, Solana gained significant momentum, surpassing Ethereum in both DEX and NFT volume. This marked a notable shift in the blockchain landscape, highlighting Solana’s competitiveness and potential market influence.
The year 2023 marked a significant turning point in the world of web3 development, introducing an array of real-world use cases that showcased the practical applications and transformative potential of blockchain technology, according to Alchemy’s latest ‘Web3 Development Report’. While this was a standout trend, the 2023 Web3 Development Report also revealed numerous other findings and milestones that shaped the landscape of decentralized ecosystems.
Real-World Web3 Use Cases Flourish
One of the standout trends of 2023 was the proliferation of real-world use cases for blockchain technology. Polygon, a leading blockchain platform, led the way by introducing the “Value Prop,” a comprehensive database tracking over 300 web3-powered use cases. These use cases spanned industries such as finance, art, gaming, and logistics, demonstrating the versatility of blockchain technology.
Big brands and institutions have started incorporating web3 elements into their platforms to create innovative and enriched experiences for their customers. Here are a few examples:
- Coca-Cola’s NFTs: Coca-Cola released a collection of commemorative collectibles (NFTs) to celebrate “International Friendship Day.”
- Disney Accelerator: Disney selected Polygon Labs as one of the six companies to participate in its Disney 2022 Accelerator program. This initiative aims to foster the growth of innovative companies worldwide, focusing on emerging technologies such as augmented reality (AR), NFTs, and artificial intelligence (AI).
- Dubai Land Department: The Dubai Land Department (DLD) has introduced a blockchain solution that records real estate contracts and connects them with various entities, including the Dubai Electricity & Water Authority (DEWA) and the telecommunications system.
- Harvard’s Library Innovation Lab: Harvard’s Library Innovation Lab is currently exploring decentralized storage technologies like Filecoin to safeguard digital information.
Corporate Integrations and Web3 Adoption
Established brands and institutions began integrating web3 aspects into their platforms, resulting in enhanced customer experiences and novel opportunities. For example, Pudgy Penguins collaborated with Walmart and zkSync to launch a toy and collectible line, creating new licensing opportunities for holders.
In the supply chain sector, WiPro deployed Falcon, a cutting-edge platform incubated by Shell and powered by Polygon PoS. Falcon revolutionized supply chain management by allowing stakeholders to track heavy equipment throughout its lifecycle.
Financial institutions also embraced blockchain, with Franklin Templeton launching the Franklin OnChain U.S. Government Money Fund on Polygon. This marked a milestone as the first U.S.-registered mutual fund to utilize a public blockchain for transactions and share ownership recording.
Web3 developer activity soars to all-time highs in 2023
Web3 developer activity has soared to all-time highs in 2023, with significant milestones and achievements across various blockchain ecosystems. While headlines throughout the year often focused on corporate scandals, regulatory concerns, and Bitcoin ETF rumors, behind the scenes, web3 developers were actively building and deploying new projects across the decentralized landscape.
Ethereum, the leading smart contract platform, continued its remarkable growth trajectory. Ethereum and wallet SDK installs reached all-time highs for the fifth consecutive year, with a 31% increase year-over-year. Additionally, the number of EVM (Ethereum Virtual Machine) smart contracts deployed across Ethereum Mainnet, Arbitrum, Optimism, and Polygon surged by an astonishing 303% compared to the previous year.
Account abstraction emerged as a critical development in the web3 space, simplifying user experiences by introducing features like sponsored gas and social login. Over 960,000 new ERC-4337 accounts were created in Q4 alone, accounting for 53% of the total 1.8 million deployments to date. Major companies such as Visa, Wipro/Shell, and Circle began integrating account abstraction infrastructure, indicating its growing importance.
The year 2023 saw Ethereum’s rollup-centric roadmap come to fruition, with new frameworks from Layer-2 solutions like OP Stack, Arbitrum Orbit, and Polygon’s CDK enabling the launch of chains as either Layer-2 or Layer-3 solutions. Notably, Base, built on OP Stack, sought to bring innovative use cases like gaming and music onto the blockchain.
One of the most noteworthy trends in 2023 was the rapid ascent of Solana. Solana’s decentralized exchange (DEX) and non-fungible token (NFT) volume surpassed Ethereum’s in the fourth quarter, marking a significant shift in the blockchain landscape. Solana and Polygon, in particular, made substantial inroads into Ethereum’s long-standing dominance, capturing 8% of the NFT market share.
In the realm of education and skill development, Alchemy University attracted over 69,000 students who completed more than 674,000 lessons. JavaScript for Ethereum was the most popular course, with 359,000 lessons completed. Additionally, industry events and hackathons witnessed record attendance, with Solana’s Hyperdrive hackathon receiving over 900 final projects and ETH Denver’s attendance growing by 50%.
Testnets also underwent significant changes, with Goerli’s official deprecation in Q1 leading to a shift towards Sepolia testnets in 2023.
Overall, the year 2023 marked a milestone in web3 development, with an emphasis on real-world use cases, corporate integration, and significant blockchain milestones. As the decentralized ecosystem continues to evolve, these findings offer valuable insights into the future potential of blockchain technology across diverse industries.
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