On January 3rd, 2009, a certain Satoshi Nakamoto presented to the world a new way to store data. The technology at the core of this idea was called ‘blockchain.’ Typically, data storage is where we upload our photos, videos, and documents to cloud storage. Think Google Cloud or Apple. Blockchain instead uses networked computers to store data with no central authority. Fast forward to the present and blockchain continues to revolutionize and create new trends in the web3 development world.
The last fifteen years have seen numerous developments in the cryptocurrency world.
- The incredible growth of bitcoin
- The rise of web3 solutions and products
- The success of numerous ICOs and more
Despite the many positives, Web3 also gained a lot of negative press, particularly in 2022. This negativity was thanks to many scam projects, NFT pumps and dumps, and the fall of many exchanges.
The world of Web3 continues to grow and evolve every day. Presently, there are steps and measures in place to prevent previous mistakes from happening again. Developers looking to get into this world should first understand the development trends before starting. That way, they increase their chances of success.
Biggest web3 development trends in 2024-25
The main objective of Web3 or any technology is to improve human life. This objective is true for every technology. We understand that the success of any product depends on the benefits it provides to the customer. With that in mind, we’ve compiled the biggest areas of Web3 development in 2024.
- Decentralized Finance
- Web3 social networks
- Zero-disclosure technology (ZKP)
- Modular blockchains
- X-to-Earn applications
The development trends listed here have the best potential to succeed in the coming years. For example, DeFi solves the problems a regular banking system faces. The mass adoption of cryptocurrencies will occur thanks to the X-to-Earn applications and ZKP will provide greater privacy in the blockchain.
Decentralized finance (DeFi)
Almost every process in today’s financial world is controlled by centralized authorities. This approach results in problems like bankruptcy, high transaction costs, rampant corruption, etc. For example, the ability to open a bank account or get a loan was influenced by a candidate’s skin color or other needless factors.
In contrast to regular financial systems, DeFi services operate using a blockchain. This system works thanks to the creation of smart contracts and does not require any third-party involvement in the transaction. As a result, DeFi boasts advantages over others like
- Resistance to censorship
Almost every DeFi application in the market today works using the Ethereum blockchain. Also, the smart contracts used here work thanks to EVM or Ethereum Virtual Machine. The EVM manages smart contract functionality, as an essential part of anything Web3. Do note that Ethereum does come with some drawbacks. The most notable problem is that it can only execute ten to twelve transactions per second. The other problem is the fluctuating gas fees or costs users pay for every transaction.
For this reason, many Web3 developers in the DeFi sector opted to create new solutions like the Neon EVM. Neon EVM enables transactions to be processed on the Solana blockchain. Solana can process 60,000 transactions per second, giving it a significant advantage over Ethereum. Also, developers can leverage Solana’s lower gas fees without losing anything in the process.
The demand for decentralized finance grows every day. However, the current state of things suggests that the sector has room to improve. Hence, Web3 development in this area will remain in demand for the foreseeable future.
Regenerative finance (ReFi)
ReFi is a financial system with an emphasis on sustainability and the health of ecosystems, communities, and the world over monetary gain.
ReFi represents a departure from the regular financial systems. Many often critique the regular financial systems for placing a high priority on short-term gains over long-term stability.
ReFi brings together two disciplines. They are decentralized finance and regenerative economics.
DeFi looks to remove the need for opaque centralized infrastructure and democratize access to financial services. ReFi also standardizes the way the financial system governs itself.
Regenerative economics on the other hand aims for balanced and circulatory capital flows. It considers the positive external factors alongside the people and society.
Web3 social networks
It shouldn’t surprise anyone that current social media platforms are doing anything and everything to gain your attention. Beyond that, they do everything possible to keep your attention. Social media companies keep your attention to sell your data to advertisers and generate revenue. This issue is the biggest problem plaguing social media and Web3 developers are looking at ways to circumvent that.
According to these developers, Web3 social networks will be
- Fully decentralized
- Give users total control of their data
- Create a social graph built on the blockchain
The term social graph refers to the principle of structuring your online interests, preferences, and activities. Social media often recommends things to you based on your social graph.
The creation of a Web3 social network happens by deploying decentralized apps on different blockchains like Solana, Binance, and Ethereum. The working principle is based on smart contracts.
Presently, there is a need to develop current Web3 social networks and create new solutions based on blockchain. Hence, creating a Web3 mobile app in this sector is an interesting and possibly profitable solution for anyone interested.
These applications are an ideal way to integrate cryptocurrency into a user’s daily life. Here, they are incentivized to use the blockchain network. Currently, the technology here is evolving and that means many more models will emerge over time. The most notable strategies prevalent in this sector are
Play to Earn– here, users earn rewards based on their performance in blockchain-based games.
Learn to Earn– Here, students are rewarded for completing lessons, quizzes, and assignments.
Move to Earn– Here, users are encouraged to perform physical activities and earn rewards.
Watch to Earn– Here, users can watch videos or other types of digital content and earn rewards.
The first push to realize the benefits of blockchain may come from these types of applications. The reason is that financial gain is a great way to help people understand technology. Hence, Web3 development in this niche will remain in demand and relevant for the next few years.
AI in Web3 development
Artificial Intelligence plays an important role in Web3 development. It can improve many aspects of decentralized apps and blockchain ecosystems. Through AI, Web3 developers can create better solutions in areas like gaming, social media, finance, and more.
Here are the most notable ways where AI is useful in Web3 app development
Analyzing and securing smart contracts
Machine learning algorithms here help developers identify potential bugs, backdoors, and possible weaknesses in the smart contract code. Artificial intelligence here makes the ecosystem secure and less open to hacks or exploits.
Applications in DeFi
AI algorithms here can analyze market data and user behavior. That way, the algorithms can create special DeFi strategies and provide personalized financial services.
An AI-based oracle improves data reliability and accuracy. It does this through cross-referencing information from multiple sources and using that to edit or remove manipulated data.
Economic models and tokenomics
AI enables the optimization of inflation rates, token distribution, and other economic parameters. These optimizations result in sustainable and stable systems.
Artificial intelligence is a new stage in Web3 development. The combination of these two technologies will only improve people’s lives. There’s immense potential here in fields like medicine, real estate, and commerce.
For example, neural networks in healthcare can improve disease diagnosis, and task administration and predict potential disease outbreaks. Alongside this, blockchain enables a decentralized and confidential data storage environment.
Many Web3 enthusiasts are looking to create a blockchain that is scalable, decentralized, and secure. The problem is, that it is only possible to realize only two of these while sacrificing the third. However, the rise of modular blockchains fundamentally changes the way we look at things.
The best way to understand this innovation is to remember the functions any blockchain must perform. It should process truncations, reach a consensus, and make data available to all.
Massive blockchain networks like Ethereum cannot do all these all at once. Here, the network focuses on consensus and decentralization. Hence, the network can perform a few transactions per second.
However, modular blockchains like Polygon Avail and Celestia are emerging. These networks delegate functions between nodes. Such an approach makes the network run better.
A regular blockchain handling all three functions is like three people tugging on the same chain. Eventually, that chain will break. In a modular blockchain, there are three chains (or modules) to handle each function.
Identity and privacy
The proliferation of decentralized apps and blockchain means that privacy and identity issues are on everyone’s mind. The trends in Web3 development in 2024 will affect this area to provide benefits like security, electronic identity, and user control over their data.
A core principle that drives identity innovation in Web3 is Self-Sovereign Identity or SSI. SSI gives users total control over their digital identity. It reduces their reliance on centralized authorities. Instead of entrusting sensitive information to a third party, the user can store their data in a blockchain.
Decentralized Identifiers or DIDs help people create digital identities. They can then link this identity to their physical documents as verification. The best part is that big companies only learn about the user’s personal information if the user allows it. DIDs effectively give people full control over their data.
This technology is a small part of what Web3 developers can use to ensure their privacy on the web.
Public blockchains face many limitations like the lack of data privacy. ZKP or Zero-knowledge proof technology addresses this problem and sets new trends for Web3 development in 2024.
ZKP is a principle through which it is possible to confirm information without fully revealing the information. The technology operates similarly to games like Where’s Waldo. You know where Waldo is in the image but your friend does not believe you. How do you reveal that information without fully giving away his location?
Presently, there are two types of ZKPs. They are
Interactive: One of the participants repeats the process of proof multiple times till the other participant is convinced.
Non-interactive: One party prepares the proof in advance. It is then verified after the fact by the other party.
ZKP technology is potentially revolutionary to blockchain as it completely changes the way we think about and use technology.
The best way to prepare for future Web3 trends
The first thing to do is accept that blockchain technology is here to stay. It is only going to grow and develop in the coming years. After that, think about the value that you bring to this field. Typically the crypto world has analogues to problems faced in traditional sectors.
The evolution of Web3 is a shift to a secure, inclusive, and user-centric world. As we move forward, Web3 trends will evolve and shape the internet’s future. It is an exciting time to be part of this digital revolution and we are excited to see what the future holds.