Author: Benjamin Schiller, CoinDesk; Translator: Tao Zhu, Golden Finance
This article reviews the breakthrough developments of 2024 and looks forward to the development trends that blockchain technology may usher in in the coming year.
Let's take a deep look at the milestones, trends and predictions that will shape the next era of cryptocurrency.
Ethereum's Duncun Upgrade: Ethereum in 2024 ushered in the most important network upgrade to date.Ethereum launched the Cancun-Deneb (Dencun) upgrade, a landmark improvement designed to enhance scalability and reduce data fees, marking a key step in the evolution of the network. Duncun introduces proto-danksharding, a mechanism designed to reduce the cost of Layer 2 aggregation by simplifying data availability and increasing transaction throughput. These changes, while highly controversial, are intended to benefit developers and pave the way for further innovation on the Ethereum roadmap, solidifying its position as the leading smart contract platform.
Solana Value Locked: Solana’s DeFi TVL hit $9 billion in total value locked (TVL) for the first time in three years, and its DeFi ecosystem is experiencing further growth.This achievement reflects increased user engagement and the expansion of decentralized applications on the platform. Institutional adoption and major integrations have contributed significantly to this growth. Financial giants such as Franklin Templeton and Societe Generale have leveraged 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 pegged to Solana, indicating growing confidence in its infrastructure.
Wake-up call for quantum computing: Google’s advances in quantum computing, especially its revolutionary quantum chip, have sounded the alarm in the crypto community about potential threats to blockchain security. The chip’s ability to solve problems that conventional computers cannot has reignited debate about Bitcoin’s reliance on traditional encryption methods and the broader implications for the crypto ecosystem. Experts have stressed that a transition to quantum-resistant encryption is necessary to protect cryptocurrencies from future vulnerabilities. While current quantum computers are not yet capable of disrupting blockchain networks, Google’s progress highlights the need to take proactive steps to ensure the long-term security and resilience of digital assets.
Layer 2 Adoption Soars:Layer 2 adoption soars as projects like Arbitrum, Optimism, and Base play a key role in solving Ethereum’s scalability challenges. Arbitrum continues to dominate the Layer 2 ecosystem, surpassing 1 billion in transaction volume, driven by its strong developer support and DeFi integrations. Optimism continues to expand its influence with its OP Stack technology, which enables modular Layer 2 solutions and fosters collaboration across the ecosystem through integration with Optimism’s Hyperchain. Base, a layer 2 project incubated by Coinbase, has gained significant traction by leveraging Coinbase’s broad user base and on-ramp, with Franklin Templeton becoming the first asset manager to launch a tokenized fund of funds on the network.
DeFi leaders innovate:Aave became the focus of Grayscale Investments' new fund launched in October, providing institutions and qualified investors with investment opportunities in its governance token (AAVE) through traditional investment tools; Uniswap Labs announced the launch of Unichain, a decentralized Layer-2 blockchain built on Optimism's OP Stack, designed to increase transaction speeds, reduce costs and improve cross-chain interoperability, with a mainnet launch scheduled for 2025; as its Endgame Plan MakerDAO rebrands as Sky as part of its 2025 coin offering, launching new governance (SKY) and stablecoins (USDS), autonomous “Sky Stars,” deflationary tokenomics, and a roadmap to fully transition from MKR to SKY tokens.
AI x Blockchain:The convergence of AI and blockchain will revolutionize identity verification, predictive analytics, and smart contract automation — and hopefully reduce the negative impacts of AI.
Regulated Crypto Hubs:Jurisdictions such as Hong Kong, Dubai, and Singapore are positioning themselves as crypto-friendly innovation hubs, attracting startups and institutional investors.
Interoperability Takes Center Stage:Cross-chain protocols will dominate development, enabling seamless asset transfers and collaboration between blockchain ecosystems.
Electric Capital Developer Report: The report highlights the continued growth of blockchain development, with a 35% increase in the number of active developers. Ethereum, Solana, Polkadot, Base, and Polygon lead the way, demonstrating their strong developer communities. Solana is the biggest factor in attracting 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 strong competitor in the smart contract space.
Ethereum’s Pectra upgrade: Ethereum’s upcoming Pectra upgrade is divided into two phases, Prague and Electra, to ensure a smoother rollout of key improvements to the consensus and execution layers. The Electra phase will improve validator efficiency, enhance network security, and introduce an improved validator exit management mechanism.
Scaling Solutions: ZK-rollups and modular blockchains will 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 a future where blockchain networks can 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 identity without relying on centralized institutions.
2024 sets the stage for the next chapter in cryptocurrency, with breakthroughs in scalability, DeFi, and security shaping the transformative year ahead.
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