During the previous Bitcoin Halving in 2020, we saw a completely different approach of projects utilizing blockchain technology. Narratives such as GameFi, DeFi, and Layer 2s were popular and dominating the blockchain industry then. With a new bitcoin halving approaching this coming April 2024, we are now seeing new narratives that are constantly changing and advancing the landscape of blockchain and cryptocurrency. This article will be taking a deep dive into the new blockchain narratives that are making a difference in the blockchain space.

Artificial Intelligence (AI)

Artificial Intelligence has been a dominating contender of one of the cryptocurrency narrative. With a total 11.32% of total share of investor interest in 2023 from Coingecko data, it continues to gain significant interest as the world pays attention to any new advancements. Here are a few applications of AI in blockchain technology:

Transparency: AI models are able to provide a clear framework of blockchain operations. From auditing data to securing the integrity of blockchains, it is another process that compliments decentralization by providing trustless transparency.

Blockchain Development: AI-assisted development tools empower blockchain developers with greater productivity and better quality of work. Tools such as GitHub Copilot help blockchain developers build and maintain blockchain developers through suggested codes tailored to the project’s nature. 

Decentralized Finance (DeFi): AI has been associated with automating different processes across different industries, including blockchain. AI is able to assist with invoicing, payments, and transactions by eliminating the need for a middleman. AI is able to accelerate the growth of DeFi by pairing with blockchain technology to make financial processes more efficient and trustworthy.

Real World Assets (RWA)

Real World Assets elevate blockchain technology to become accessible and understandable to everyone by tokenizing tangible assets. This new narrative allows assets outside of the cryptocurrency market to be tokenized and issued in on-chain services for retail customers. Real World Assets that are currently being tokenized are real estate, loans, and treasury bonds. 

RWA bridges the gap between TradeFi and DeFi by allowing users to participate in the same open market while receiving a sustainable yield that is backed by traditional assets. RWA has been a significant contributor to the cryptocurrency market as new money from traditional investing flows into DeFi.

Decentralized Physical Infrastructure (DePIN)

Imagine a server that is being built, maintained, and operated with blockchain protocols. Decentralized Physical Infrastructure (DePIN) is a new innovation that allows physical hardware infrastructures to be run in an open, trustless, and decentralized way. These are ways DePIN is transforming the way we use hardware:

Efficient Hardware Usage: Users looking to store information or process data are now able to execute tasks in a decentralized manner. The data is protected through blockchain technology via smart contracts.

Peer-To-Peer System: DePIN allows idle hardware to be utilized by users for storage, data processing, and other computing services via peer-to-peer (P2P) systems. In return, merchants are rewarded for their services with the project’s native token.

Accessibility: Big Tech usually controls the market for physical hardware. DePIN changes this by letting users set up their own hardware systems using peer-to-peer networks. DePIN allows small businesses and individuals to get hardware that’s usually hard to get because big companies limit access.

The growth of blockchain technology has been an unprecedented one in comparison to the growth of previous technology. It’s no secret that new blockchain narratives continue to rise as interest, resources, and innovation pours into blockchain technology. It is important to do your own research and understanding which narrative resonates with your vision of the future of blockchain before investing in projects of different narratives.

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