Author: Benjamin Schiller, CoinDesk; Translated by: Tao Zhu, Jinse Finance
This article reviews the groundbreaking developments of 2024 and looks ahead to the trends that blockchain technology may encounter in the coming year.
Let's delve into the milestones, trends, and predictions shaping the next era of cryptocurrency.
1. Review: Milestones in Crypto Technology for 2024
Ethereum's Duncun Upgrade: 2024 marks the arrival of Ethereum's most significant network upgrade to date. Ethereum has initiated the Cancun-Deneb (Dencun) upgrade, a milestone improvement aimed at enhancing scalability and reducing data fees, marking a critical step in the network's evolution. Duncun introduces proto-danksharding, a mechanism designed to reduce Layer 2 aggregation costs by simplifying data availability and increasing transaction throughput. While these changes have sparked considerable controversy, they aim to benefit developers and pave the way for further innovations in Ethereum's roadmap, solidifying its position as a leading smart contract platform.
Solana Locked Value: Solana's DeFi TVL hits a total locked value (TVL) of $9 billion for the first time in three years, as its DeFi ecosystem experiences further growth. This achievement reflects increased user engagement and the expansion of decentralized applications on the platform. Institutional adoption and significant integrations have greatly fueled this growth. Financial giants like Franklin Templeton and Société Générale are utilizing Solana for tokenized asset projects. Solana has also expanded its influence, with Robinhood adding SOL to its trading platform and Cboe Global Markets applying for an ETF linked to Solana, indicating growing confidence in its infrastructure.
Quantum Computing Wake-Up Call: Google's advances in quantum computing, particularly its groundbreaking quantum chip, have sounded the alarm in the crypto community about potential threats to blockchain security. The chip can solve problems that traditional computers cannot, renewing discussions about Bitcoin's reliance on conventional cryptographic methods and the broader implications for the crypto ecosystem. Experts emphasize the need to transition to quantum-resistant cryptography to protect cryptocurrencies from future vulnerabilities. Although current quantum computers cannot yet compromise blockchain networks, Google's progress highlights the necessity of taking proactive measures to ensure the long-term security and resilience of digital assets.
Layer 2 Adoption Soars: With projects like Arbitrum, Optimism, and Base playing key roles in addressing Ethereum's scalability challenges, Layer 2 adoption has soared. Arbitrum continues to dominate the Layer 2 ecosystem, with transaction volumes exceeding 1 billion, thanks to its robust developer support and DeFi integrations. Optimism continues to leverage its OP Stack technology to expand its influence, enabling modular Layer 2 solutions through integration with Optimism's superchain and facilitating collaboration across the ecosystem. Base, a Layer 2 project incubated by Coinbase, has gained significant traction by leveraging Coinbase's extensive user base and entry point, with Franklin Templeton becoming the first asset management firm to launch a tokenized fund on the network.
DeFi Leaders Innovate: Aave has become a focal point for Grayscale Investments' new fund launched in October, offering institutional and accredited investors an opportunity to invest in its governance token (AAVE) through traditional investment vehicles; Uniswap Labs announced the launch of Unichain, a decentralized Layer-2 blockchain built on the Optimism OP Stack, aimed at increasing transaction speed, reducing costs, and improving cross-chain interoperability, with plans to launch its mainnet in 2025; as part of its Endgame Plan, MakerDAO has rebranded to Sky, introducing a new governance token (SKY) and stablecoin (USDS), autonomous “Sky Stars,” deflationary tokenomics, and a roadmap for a complete transition from MKR to SKY tokens.
2. Emerging Trends for 2025
AI x Blockchain: The convergence of artificial intelligence and blockchain will revolutionize authentication, predictive analytics, and smart contract automation — while also aiming to mitigate the negative impacts of AI.
Regulated Cryptocurrency Hubs: Jurisdictions like Hong Kong, Dubai, and Singapore are positioning themselves as crypto-friendly innovation centers to attract startups and institutional investors.
Interoperability Takes Center Stage: Cross-chain protocols will dominate development, enabling seamless asset transfers and collaboration between blockchain ecosystems.
3. Focus on Developers in 2024
Electric Capital Developer Report: The report highlights the continued growth of blockchain development, with the number of active developers increasing by 35%. Ethereum, Solana, Polkadot, Base, and Polygon lead the way, showcasing their strong developer communities. Solana has become the biggest draw for new developers, attracting 7,625 new developers in 2024, surpassing Ethereum. Solana's appeal stems from its low fees, fast transactions, and numerous memecoins, making it a formidable competitor in the smart contract space.
4. Key Points to Watch in 2025
Ethereum's Pectra Upgrade: Ethereum's upcoming Pectra upgrade is divided into two phases, Prague and Electra, to ensure a smoother rollout of critical improvements to the consensus and execution layers. The Electra phase will enhance validator efficiency, bolster network security, and introduce improved validator exit management mechanisms.
Scaling Solutions: ZK-rollups and modular blockchains are set to drive the next wave of scalability, ensuring a smoother user experience. Zero-knowledge proofs are emerging as a transformative technology that enhances privacy and efficiency while paving the way for blockchain networks to scale seamlessly without compromising decentralization.
Decentralized Identity: The rise of decentralized identity solutions may redefine how users interact with Web3 platforms, emphasizing privacy and ownership. These systems leverage blockchain technology to give users control over their personal data, enabling them to verify their identities without relying on centralized entities.
5. Conclusion
2024 lays the groundwork for the next chapter in cryptocurrency, with breakthroughs in scalability, DeFi, and security shaping a transformative year ahead.
