Six crypto narratives for 2024
Supposedly, octopuses can predict the future. Image by Aluda Tan via Flickr.com. License: Creative Commons
We have put together six narratives and trends that could shape the world of cryptocurrencies 2024. It’s not about the price, but about technologies and applications!
On the Internet it is teeming with forecasts, which will bring for crypto in 2024. In most cases, it is about any fund manager says any price that Bitcoin will reach this year. As much as we look forward to high prices-this is more of the boring part of the crypto revolution.
The question of the great narratives that are indicated for this year is more interesting. This narrative can be investment opportunities, but they also show where you can expect innovations and breakthroughs. So we read a little through the Internet and collected some exciting forecasts.
Krypto and AI
Artificial intelligence (AI) is very likely also a megathema in the Tech world in 2024 and will probably also shine through the crypto world. Token, coins and projects that do something with AI have, like in 2023, better chances to be perceived and bought. Apart from that, there are some exciting ideas on how the two topics concrete.
BitWise predicts in his predictions for 2024 that AI assistants will pay on the Internet with cryptocurrencies: Currently, semi-autonomous digital AI assistants are emerging that perform certain tasks. But to book a flight, for example, you have to be able to handle money. This could be possible through cryptocurrencies (even if something is questionable that you couldn’t solve it differently).
A guest author on Coindesk, on the other hand, predicts the “fusion of AI and Metaverse”. The “meta -verse” should be a digital space, so to speak of the Cyperspace, but thanks to NFTs with values and identities. Generative KIS can transform this space by users no longer have to design the virtual worlds themselves, but “simply create by the power of the description.“Exciting point, even if the specific reference to crypto remains a little vague.
A16Z, Andreessen’s investment fund, also predicts that “AI and Blockchain meet.“So far, KIS are firmly in the hands of fewer tech companies that are able to train and operate them. With crypto it makes it possible to decentralize this, for example through marketplaces for modular AI services or the distribution of the underlying computing power. The persecution of the origin can also be exposed to Deep Fakes – a large threat from KIS. According to the fund, crypto will democratize AI innovations.”
Real World Assets
Real World Assets (RWA) means classic financial products, such as bonds or stocks, but they get to the blockchain as tokens. RWAs can be stored and transferred like Bitcoin and, like all tokens, can be integrated into the defi ecosystem. Among other titles, RWAS have been an issue for a long time, but in 2024 the year could be in which they come to a breakthrough.
BitWise predicts that JP Morgan, the largest bank in the world, will put on an RWA fund this year. JP Morgan has been experimenting with blockchains for years and has only recently tested a tokenized portfolio for avalanches. So it is not so far -fetched that the bank will publish a fund on a blockchain in 2024.
Coindesk calls several RWA trends for 2024. For example, tokenized government bonds will play an important role, which currently record interest of more than five percent at high certainty, but also CO2 loans and private loans.
decentralization
Decentralization is the most popular catchphrase in the industry, which is often claimed, but is almost as frequently implemented in steep.
A16Z now predicts “a new era of decentralization”. In the past few years, the Web3 has been a “living laboratory” in which models have developed, for example, how to actually decentralize through DAOS organizations instead of just awakening the appearance.
This type of decentralization could take place in numerous fields. In addition to the well -known defi (decentralized finances), Desci (decentralized science) and decentralized social media are already emerging, while tokenize.IT The tokenization of GmbH shares brings a certain decentralization into classic corporate structures.
The basics are significantly better than a year ago, especially in technology. It is still very uncertain whether the year in which the decentralization of organizations and processes beyond the home game “Finance” goes out is still very uncertain. Because this is not just a technical, but above all a social and often enough legal question.
Nfts
The NFT trend is actually over. The tokens have proven themselves to market digital works of art and collecting pieces, and they technically entered into some DAPPs, such as uniswap. However, these successes were drowned under a gigantic wave of speculation, which has now been drained.
For 2024, some observers expect a comeback from the NFTS. But this time they should be more serious and serious. Coindesk, for example, assumes that NFTs are used for more and more blockchain-based games, but also for established companies. The “NFT-based brand formation will be a significant driver of the Web3 adoption in 2024.“The new NFTS will be less specific for speculation, but will create values and applications, especially with stronger brand formation and customer loyalty.
BitWise makes the forecast that Taylor Swift, one of the most famous singers in the world, will publish a NFT. “A possibility? Spotify – Where Swift was the most streamed artist in 2023 – experimented with playlists who demand the possession of a certain NFT from listeners.“This type of access restriction by NFTS is one of the long -discussed use of the tokens. Maybe 2024 will be the year in which this will be reality.
User Experience
The user experience in crypto is “not bad”-if you are in there. But for many it is still extremely confusing, and everything that goes beyond simple transactions overwhelms and frightens most people.
A16Z predicts that in 2024 we will see some breakthroughs in the user experience. The developers are already working on it, and this year their efforts could bear fruits. Methods such as Passkeys can help make wallets more secure without passwords; “Smart Accounts” based on Account Abstractions make Wallets programmable, which opens up an almost endless spectrum of simplifications and backup strategies; “Embodded Wallets” are already incorporated into applications and simplify the entry radical.
As with decentralization, the technical processes are largely available – which is only part of the question of adoption. The highly expected account abstraction has so far failed because most users have no need to migrate their wallets, and that the variety of possibilities makes the wallet guide more complicated instead of easier. In 2024 this potential may be further opened up – and possibly not.
Taproot
Finally a personal forecast of mine: In 2024, technologies will also play a role based on Taproot. Taproot is the Bitcoin upgrade that we owe ordinal NFTS and BRC token. With BITVM there is a concept that can be connected to the blockchain based on Taproot, yes, even operating systems.
The Taproot undertook to integrate a hash tree into the witness data of a transaction itself allows almost an infinite amount. While Ordinals and BRC token will also be an issue in 2024, BitVM and other concepts could find a tentative way into the wallets. For example, the most interesting backup strategies, programmable wallets and new types of multisig are conceivable.
Here, too, the underlying technology is not the problem. She is already standing. The big challenge will be to transfer them to the concrete technology of the wallets, to create useful applications and to win the users for them. This is also a long way that will never come to an end in 2024, but will be started at best.