2023 and Blockchain Adoption
02 Jan 2023
Prabir Mishra , TRST01
The year 2023 will be a critical year for Mainstream Blockchain adoption.
Blockchain technology is relevant to more than just cryptocurrencies. Blockchain, however, is mainly concerned with the decentralized storage of information and the consensus of particular digital assets, which can or cannot be cryptocurrencies. As FUD sweeps the crypto market heading into 2023, it has been a testing time for crypto evangelists. FUD is slang for fear, uncertainty and doubt, which roiled the crypto market for the better part of last year.
The end of 2022 will be most remembered for the collapse of the Crypto Market FTX, the centralized crypto exchange. The Crypto Collapse started with the full circumstances that led to this calamity and the extent of the damage to consumers and the overall Industry.
Most of you agree that the collapse of Cryptocurrency is more to do with Speculation and lack of intrinsic value or economic conditions, real-world assets.
A blockchain without Cryptocurrency refers to a distributed ledger that keeps track of the status of a shared database across numerous users. The database can include the history of cryptocurrency transactions or confidential voting data related to elections, for example, that cannot be updated or deleted once added.
Let us discuss some emerging use cases of Blockchain that could lead to mainstream blockchain adoption in 2023 .
Blockchain and Climate Change
Climate change meets us on multiple fronts — from damage to our food supply to harmful gases. Blockchain technology aid the fight against climate change.
2023 should be the year for Climate Change to the mainstream. Blockchain plays a crucial role in defining trust and traceability of Climate Action with dMRV(Digital Measurement, Reporting and Verification) and on-chaining climate action, and further tokenization could be a game changer. Blockchain technology is a powerful tool that can significantly improve transparency, accountability and traceability of greenhouse gas emissions. It helps companies provide more accurate, reliable, standardized, and readily available data on carbon emissions.
Another aspect of Blockchain in Climate Action is ReFi, regenerative finance, which is about leveraging crypto rails to rebuild our economies in more inclusive and sustainable ways. In 2023, the prediction is that ReFi will be hotter than DeFi, especially at the intersection of crypto and climate change.
Blockchain Technology meets Low Carbon Economy.
Several layer one and layer two blockchains are focused on promoting and supporting the low-carbon economy and creating ecosystem funding to encourage ReFi projects to deploy on their Blockchain. The list includes Cosmos, Hedera, Topl, Polygon, Celo, Near, Rubix and Algorand, among many others. In 2023, we will have more Green Blockchain protocols on the roll.
Blockchain Technology and Traceability
- In the Year 2023, Tracking tools will continue to develop in the near future and may add more capability to anti-money laundering investigations. On-chain data can benefit blockchain analytics and anti-money laundering investigations. We are already starting to see a multitude of on-chain trading and analysis platforms and tools. Through the data aggregation of these tracking tools, users can discover information such as the location of their funds and determine whether their assets are connected to stolen funds.
- In 2023, Document Authentication, Transaction Reconciliation, Data Provenance, and Online transactions could benefit from Blockchain technology. We will see more and more real-world use cases on Blockchain.
Blockchain and Supply Chain
In 2023, we will have a more considerable adoption of Blockchain in the Supply chain to define trust transparency and traceability.
In the case of Supply chains, a limited number of known parties interact, and Blockchain allows them to protect their business interests against malicious actors. Successful blockchain applications for supply chains require permissioned blockchains and rules to govern the system.
The world of ERP systems and financial ledgers stands to benefit from Blockchain. The scenario could be a simple transaction involving a retailer, a supplier, and a bank supplier needing to execute the order, with support from the bank in the form of working capital.
It could also apply to an E-commerce platform involving millions of daily transactions with thousands of vendors and multi-country settlements. The transaction involves flows such as information, inventory and finances.
Blockchain to be used to push farm exports Economic Times.
- The year 2023 promised to provide a technological push through Blockchain. Lack of quality produce and traceability has hampered India’s food exports apart from disincentivizing growers, and Blockchain technology can help bridge this gap,” a senior government official told ET.
According to the Agriculture and Processed Food Products Export Development Authority, India exported fresh fruits and vegetables worth about $1.52 billion in 2021-22, with fruits accounting for $750.7 million and vegetables for $767.01 million.
Exports of processed fruits and vegetables totalled $1.73 billion. These included about $1.12 billion of processed vegetables, including pulses and $610.69 million of processed fruits and juices.
Blockchain technology has manifold advantages. Since all the data gets recorded on a distributed ledger system, it becomes tamperproof. The immutability of the data creates absolute transparency and accountability. Verification becomes easy at every level – for regulators, quality certification agencies, manufacturers, wholesalers, retailers and consumers. It’s not just about verification. These initiatives can build brand value for organic food companies. It is a significant shot in the arm of the trust economy, where agricultural companies can convincingly prove their products’ health and nutrition benefits. The good news is that blockchain technology is already starting to empower the agricultural sector in India. Many manufacturers are fast moving towards adopting this technology throughout their processes.
Over the past few years, interest in blockchain technology is growing steadily and rapidly, with increased adoption of the technology by Food and Agriculture, Finance and Banks, Governments, International trade and supply chain management, triggered by the various benefits it could deliver.
2023 will see a couple of newer blockchain technology adoption models, such as asset tokenization, emerging in 2023 and beyond. Tokenization uses blockchain technology to turn digital or physical assets such as stocks, treasuries or corporate bonds into digital tokens. Smart contracts automate token transactions while helping reduce risk and increase transparency.
We may see the growth of exciting applications of tokenized assets such as flash loans and real estate. At the same time, we will also see a surge of start-ups focused on bringing TradFi institutions into crypto in a regulatory-compliant way.
The blockchain market is expected to grow further in 2023 and beyond. The spending on various blockchain solutions is forecasted to increase from $12.2 to $ 23.3 bn in 2023.
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