Blockchain adoption quietly increases

29 February 2024
Blockchain innovation persists despite the subsiding hype

When blockchain entered the corporate arena, it was one of the most hyped technologies ever. This initial enthusiasm proved to be a double-edged sword, as early adoption was driven by novelty rather than strategic value, leading to misaligned expectations and objectives and a lack of consideration for its appropriateness in specific use cases or industries.

According to a recent report by GlobalData, as the hype around blockchain subsides, adoption is quietly increasing, focusing on practical benefits and efficiency gains rather than technological novelty.

This shift from complete overhauls to narrower but clearer industry-specific applications, often developed in-house, reflects a maturing landscape. The realisation that blockchain’s fit may not be universal, coupled with the importance of having a strong digital infrastructure in place, will continue to drive the trend toward meaningful implementation.

Beyond quiet adoption, blockchain innovation persists Despite the subsiding hype, blockchain innovation continues. The sector is awash with developments like rising competition among smart contract blockchains, the rebranding of blockchain into Web3, the emergence of soulbound tokens, and the ever-vibrant world of cryptocurrencies.

These trends highlight that while enterprise adoption advances steadily, the public blockchain space remains dynamic. Asset tokenisation: blockchain’s new killer use case If cryptocurrencies were blockchain’s first killer use case, then the tokenization of real-world assets is the second. Most major financial firms launched asset tokenisation initiatives in the past two years, citing their market potential.

Converting various assets into tradable digital tokens lowers entry barriers by enabling fractional ownership and enhances global participation through increased liquidity and faster settlements. Its impact is particularly notable in making traditionally illiquid assets like real estate and fine art more accessible. This has broad implications for how wealth is distributed and how the economy functions.

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