Looking Ahead: Blockchain Trends for 2024 and Beyond

In a previous article, we explored the current major trends shaping blockchain technology in 2024, focusing on advancements such as account abstraction and zero knowledge proofs – two that we’ve implemented here at Allinfra. As we move further into the year, it's crucial to look ahead and identify the upcoming trends that will redefine the blockchain landscape.

This article will delve into three areas poised to make a significant impact on business: the integration of artificial intelligence (AI) to scale blockchain for data insights and automation, enhanced security and transparency measures for AI with blockchain systems and the rise of Blockchain-as-a-Service (BaaS).

1. AI-Scaled Blockchain For Data Insights and Automation

With the rise of AI, its integration with blockchain is set to become a key trend. One area that shows particular promise is combining these technologies to augment how we manage and analyse data.

AI can efficiently process and analyse vast amounts of data stored on a blockchain, increasing the system's intelligence. It can detect patterns and trends more accurately and make informed decisions automatically.

For instance, in a blockchain-based supply chain management system, AI can analyse blockchain data to predict supply shortages, optimise delivery routes and detect potential fraud. Blockchain ensures that this data remains accurate and tamper-proof, while AI extracts valuable insights for enhanced decision-making.

2. Blockchain-Enhanced Security and Transparency for AI

There is significant mistrust regarding data and sources in AI today, often due to concerns over data quality, bias, source credibility and AI’s vulnerability to manipulation or security issues. There is a major opportunity here to address these concerns with blockchain technology.

First, issues around AI’s output quality or biases are prone to appear if the data fed into AI systems is not authentic and verified. Because blockchains act as secure ledgers that record every change, they can help track how AI uses data and ensure that the information is trustworthy. There is also an added layer of verification in blockchain technology known as “triple entry,” where, instead of the typical two entries recorded in a transaction, a third independent record is made that confirms the transaction. This blockchain feature helps prevent fraud and errors.

Moreover, the decentralised nature of blockchain technology reduces the likelihood of cyber-attacks. Through the use of cryptography, blockchains are able to secure data against tampering, allowing organisations to leverage AI technology while ensuring the security and privacy of their data.

Fetch.AI and Ocean Protocol are notable examples of how integrating AI with blockchain technology can address some of these issues. We anticipate many more projects in the coming years that will also use blockchain technology to enhance the accuracy, security and integrity of AI data.

3. Blockchain-as-a-Service and Software Development Toolkits

Blockchain-as-a-Service (BaaS) refers to cloud-based services that allow businesses and developers to build, deploy and manage blockchain applications without having to create and maintain their own blockchain infrastructure.

BaaS offerings can vary widely. Some provide software development toolkits (SDKs) that offer the structural building blocks for creating web3 applications, while others deliver complete end-to-end solutions.

Although many enterprise BaaS applications have struggled to progress beyond the proof-of-concept phase in recent years, the use of SDKs is on the rise. Some notable examples are Alchemy, Moralis and ThirdWeb – web3 developer platforms that have emerged as leading providers of blockchain infrastructure and tools. Their SDKs abstract much of the complexity involved in blockchain development, providing a more streamlined and developer-friendly experience for building web3 applications.

We foresee this trend to continue as more organisations adopt blockchain technology. SDKs reduce entry barriers by providing modular building blocks, making it easier and more cost-effective for enterprises to develop blockchain solutions.

The blockchain industry is on the brink of transformative changes, especially with AI integration. By understanding and leveraging these trends, business and tech leaders can stay ahead of the curve and unlock new opportunities in the second half of 2024 and beyond.