The past few years have been a rollercoaster ride for those following the emergence of blockchain, cryptocurrency and Web3.
The hype and acceleration driven by ‘FOMO’ and media, along with the corresponding noise rise and fall stories, has left many enterprise leaders confused about their next moves:
- What can we expect next in blockchain, cryptocurrency and Web3?
- How do we navigate a rapidly-evolving market and regulatory landscape?
- What is ‘real’ and most important?
- What should we be focusing on next in our digital innovation strategy?
Despite the challenges, it’s important to remember that the fundamentals of blockchain technology are truly transformative and here to stay.
Whether you’re a business leader or founder, it’s crucial to avoid clickbait headlines and instead focus on the underlying technologies, and how it will impact your digital transformation strategy and needs today, and in the years to come.
To help you focus on the fundamentals, here’s just three areas in the blockchain, crypto and Web3 that will continue to grow in importance in 2023 and beyond.
Digital twins for blockchain
A ‘digital twin’ is a digital replica of a physical asset, such as a machine, building, or product that can be used to simulate its behavior, performance and interactions with other systems.The concept of a digital twin isn’t entirely new, but the management and tracking of them on a blockchain is.For the first time, assets can be monitored throughout their lifecycle, from creation to disposal, which can assist companies in the following ways:
- Supply chain management
Companies can use digital twins on blockchain to track and trace the movement of goods and services, thereby improving transparency, security, and efficiency in the supply chain.
- Predictive maintenance
Digital twins can be used to simulate the performance and behavior of a physical asset, such as a machine or piece of equipment, and this information can be used to predict when maintenance is needed.
Digital twins on blockchain can be used to automate business processes and optimize decision-making, which can save time and reduce costs.
- Remote monitoring and control
Companies can use digital twins to remotely monitor and control the performance of physical assets, such as buildings or infrastructure, which can improve overall operational efficiency and reduce downtime.
In 2023, we will continue to see how digital twins will transform a variety of industries, including construction, manufacturing, logistics and energy.
Initially, cryptocurrencies were seen as a way to bypass traditional financial systems and operate outside of government control. However, as the use of digital assets has grown and their value has increased, governments around the world have begun to take notice and implement regulations to better control their use.
As a result of this, we will begin to see a rapid migration from unregulated to regulated cryptocurrencies in 2023.
Blockchain itself will be a part of this shift by allowing companies to automate the process of regulatory compliance by providing a tamper-proof and transparent record of all transactions.
This allows regulators to easily access and verify the data they need to ensure compliance with various laws and regulations.
One way this can be achieved is through the use of smart contracts. Smart contracts are self-executing contracts with the terms of the agreement written directly into lines of code.
These contracts can be programmed to automatically comply with regulations by triggering specific actions when certain conditions are met.
For example, a smart contract could be programmed to automatically send funds to a regulatory compliance department for review when a transaction exceeds a certain threshold.
Decentralized identifiers (DID)
The use of decentralized identifiers (DIDs) is a major trend that is gaining significant legitimacy and momentum.Created and stored on a blockchain, DIDs provide a new way of creating and managing digital identities that allows individuals and organizations to have more control over their personal data
and online identity.Here are some ways the they could be used in 2023:
- Online Identity Verification
DIDs could be used to authenticate and verify the identity of individuals or devices in various online interactions and transactions. This could include online banking, e-commerce, and other online services that require identity verification.
- Internet of Things
DIDs could be used to securely identify and authenticate devices in the IoT ecosystem. This would help to ensure that only authorized devices can access and interact with the network, and would improve the overall security of the IoT.
DIDs could be used to securely store and share patient medical records, allowing for better coordination and communication between healthcare providers.
- Government Services
DIDs could be used to simplify the process of accessing government services and reduce the need for paper-based identification documents.
- Online Identity Verification
The opportunity to take ground
Right now we see a huge opportunity for companies who are innovating in the blockchain, cryptocurrency and Web3 space. As the hype subsides, those who were chasing ‘the latest fad’, or trying to make a quick buck, will disappear. Even more importantly, some companies will choose to pull back on their innovation strategies.
Meanwhile, those who adapt and continue to invest in their future with new technologies today will gain more ground on their competitors. This has been a timeless truth in business and technology over many generations.
By being the first to market with a new product or service, you can establish yourself as a leader in the industry and gain a strong foothold in the market.
It’s also crucial to not lose sight of your long-term goals and overall strategy, and avoid knee-jerk reactions to market fluctuations and short-term trends.
Be ready to evolve and pivot, but also keep your eye on the target!
What should you do next?
There’s never been a more important time to get clear on your innovation and digital transformation strategy.
With consulting and engineering under one roof, rewired.one helps you find the best solution – and make it happen.
To know your next step, request to book a free, no obligation discovery session today.
Ready to build the future with blockchain? It starts with a conversation.
Fill out your details below and we’ll be in touch.