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How Blockchain Technology Is Moving From Hype to Practical Applications: Report
Blockchain technology has passed its peak in innovation hype cyclemarking a significant shift in the last two to three years, according to a new report.
Global uncertainties shape innovation
The past five years have been anything but normal, marked by the global COVID-19 pandemic and escalating armed conflicts, says a report from the International Association for Trusted Blockchain Applications.
These upheavals have radically reshaped industrial priorities and political agendas, particularly in the technology and information technology sectors.
Rising energy prices following Russia’s invasion of Ukraine and the resulting disruptions to global supply chains have necessitated a complete overhaul of industrial strategies.
“Blockchain technology is no longer at the top of the innovation hype cycle, and has not been for the past 2-3 years,” the report notes, attributing part of this shift to the cyclical nature of the industry, driven by Bitcoin’s four-year halving cycle.
The future of innovation
The report highlights that entire industries will thrive or struggle over the next decade due to increased cyberattacks, threats to industrial assets, and shortages of skilled labor, which will have repercussions on hyperautomation and hyperacceleration.
“Exponential technologies will need to offer much more than parroting chatbots or meme coins,” the report says.
It advocates the need for a thorough assessment of technological capabilities to ensure that they form integral components of future industrial frameworks.
The Practical Capabilities of Blockchain
According to the report, blockchain technology offers several key features: flexible transparency options, secure automation, a rich set of governance tools, robust cryptographic elements, and efficient settlement capabilities.
These characteristics make blockchain particularly suitable for ledger use cases and for improving industry-wide performance through gamification and new financing options.
“Blockchain technology can gamify the key performance framework of entire industries and offer new financing options and processes to increase efficiency across industries,” the report notes.
He further emphasizes that blockchain can improve infrastructure resilience by using on-chain logic and a unified technology stack.
Anna Lianan intergovernmental blockchain expert, praised key initiatives such as EBSI, Chain-XAND DIP for their potential to revolutionize industries ranging from supply chain to energy.
“The emphasis on sustainability and regulatory compliance is particularly commendable,” Lian said, adding that addressing interoperability challenges and fostering a strong ecosystem of developers and entrepreneurs are key to maximizing blockchain’s impact.
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Basilio Maireco-founder of D8Xhe underlined the significant influence of regulatory scenarios on innovation.
“The report illustrates the transformative potential of tokenized assets in financial markets,” Maire noted, highlighting D8X’s role in this transformation by offering derivatives backed by tokenized tokens with yield.
Michael Repetnya key collaborator of MarinadeHe said that blockchain projects are no longer in the “hype” phase.
“There are many more practical use cases and applicability in the public and private sectors,” he said. Repetny also highlighted the role of regulatory frameworks such as the EU’s MiCA in fostering growth and partnerships between blockchain projects,” he said.
Blockchain in Finance
The report highlights that blockchain has already made significant progress in the highly regulated financial sector.
He argues that the next decade of exponential technologies will offer more leverage options, not fewer.
“This is not an echo of Silicon Valley techno-optimism, but if we extrapolate the trend of technological innovation on various fronts, the demographic erosion of our first-world educated workforce, and our collapse of democratic foundations, then innovation is an obligation, not an option,” the report says.
For more insights and discussions on the future of digital assets, join Benzinga’s event The Future of Digital Assets event of November 19th.
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