Smart Contract Development in 2023: Trends You Need to Know
Unlock the future of decentralized applications with a thorough examination of the top five smart contract development trends for 2023. Our guide will take you through the realms of elevated scalability, improvements in legal validity, and the revolutionary integration of artificial intelligence.
Make sure to read our full guide.
Why It’s Important to Keep up with Smart Contract Development Trends
The rapid evolution of the cryptocurrency space renders yesterday’s smart contract development methods obsolete. Staying aligned with current trends is crucial when developing a new decentralized application (dApp). Here, we present key trends to facilitate smart contract development and ensure the creation of sought-after blockchain applications.
Smart Contract Development with Enhanced Efficiency and Scalability
While smart contracts have transformed agreement execution, scalability remains a challenge. Ethereum 2.0, Polkadot, and Cardano are pivotal contributors to addressing this concern, ensuring the development of scalable decentralized exchanges and NFT marketplaces.
Layer 2 Smart Contract Development
Building dApps on Layer 2 solutions like Polygon and Arbitrum addresses scalability. State channels, sidechains, and Plasma offer efficient off-chain solutions for quick and economical micro-transactions, scalable dApps, and a substantial volume of transactions off the main chain, crucial for blockchain games.
Increased Blockchain Interoperability
In smart contract development, achieving interoperability allows self-executing agreements to harness the combined capabilities of different blockchains. It enables developers to leverage specific features and resources from various blockchain networks, thereby expanding the functionalities and use cases of smart contracts.
Why Blockchain Interoperability Matters
Interoperability allows self-executing agreements to leverage diverse blockchain capabilities, promoting cross-chain smart contracts crucial for applications like DeFi. Bridges play a vital role in enabling cross-chain functionality.
Enhancing On-Chain Functions with Off-Chain Computation
Off-chain computation addresses scalability by relocating complex calculations away from the main blockchain, offering cost-efficiency, enhanced dApp capabilities, rapid computation, and data privacy. Projects like Chainlink and Arbitrum lead in advancing off-chain computation.
Hybrid Format: Legal Aspects in Smart Contract Development
Hybrid smart contracts bring together the strengths of both traditional legal contracts and blockchain-based contracts. This advancement enables contracts to automatically execute while holding legal weight, eliminating the need for middlemen and simplifying business operations.
One example of smart contract development that holds legal weight in the real world is the tokenization of real estate.
Making Real Estate Accessible to Retail Investors via Smart Contract Development
Tokenization of real estate involves representing ownership of a property through blockchain-based tokens. Each token is a fraction of the property’s value, and these tokens are often referred to as security tokens. This approach brings several benefits to the real estate market, including increased liquidity, fractional ownership, and the ability to trade property without the need for traditional intermediaries like banks or escrow services.
AI-Powered Smart Contract Development
AI-driven smart contracts for trading tools and other applications introduce automated decision-making, predictive analytics, and intelligent automation, elevating the efficiency and effectiveness of processes in smart contract execution.
AI for Enhanced Accuracy in Smart Contract Development
AI’s role in verifying data accuracy ensures a solid foundation for smart contract development. This reduces the likelihood of errors that could lead to costly disputes or fraud. It also simplifies the auditing and compliance aspects of smart contracts, making them more reliable for various industries, including finance, supply chain management, and healthcare.
The Future of Smart Contract Development
The future of smart contracts is poised for remarkable growth and innovation. As blockchain technology continues to mature, smart contract development will become increasingly accessible, secure, and versatile. We can expect the integration of AI into smart contracts, expanding their capabilities and applications. Moreover, standards and best practices will evolve, ensuring greater reliability and interoperability. As a result, smart contract development is set to play a pivotal role in diverse sectors, from finance to supply chain management, revolutionizing the way agreements are created and executed in the digital age.
