7 Blockchain Technology Buzzwords to Follow in 2024

Blockchain is the tool for an equitable, user-centric, and community-centric future. In the more than 15 years since Bitcoin was invented, the technology has fueled cutting-edge innovation across multiple fields.

From finance to gaming, it enables digitally-based systems that blur the lines between the physical and virtual realms. This opens up a new ‘world’ where individuals can become truly free and self-sufficient through unexpected modes of interaction, collaboration and profit sharing.

But despite its life-changing potential, blockchain technology is often inaccessible to the public. In addition to technical complexity, jargon-heavy resources are also a problem.

To help you solve this problem, we’ve put together an informative yet simple primer on the seven most promising blockchain technology jargons for 2024.

1. Autonomous world

Blockchain technology heralds an era of transformation through its nurturing capabilities. autonomous world, where grassroots organizations retain the power to establish and manage their own rules. This paradigm shift heralds a new level of digital autonomy and asset ownership unprecedented in the more than 40 years of Internet history.

Current discussions about user autonomy and privacy often focus on the concept of self-management of private keys. These unique cryptographic codes are essential for accessing on-chain digital assets, encapsulated in the popular saying ‘your keys, your cryptocurrency’. But true autonomy, and therefore privacy, extends beyond simply owning private keys. This includes control over the underlying logic or ‘digital physics’ that governs the on-chain system. This control allows companies to define what constitutes their digital world and what does not.

Owning your private keys is just the beginning. This means broader authority over decision-making within an autonomous world. Here the individual is not simply a key holder. They become central figures in shaping our digital future. This represents a significant leap forward towards a more powerful and decentralized digital presence.

The autonomous world operates on blockchain, which has distinct characteristics and existence independent of human beliefs. In this digital world, blockchain technology allows anyone to observe their state and reach consensus. This world will last as long as we participate in digital consensus.

2. ZK Sync

Autonomous Worlds represent the holistic ideals that will shape our digital future, but other enabling technologies are set to make waves in 2024. ZKSync is one of them.

Balancing scalability, security, and decentralization has been one of the most persistent concerns in the blockchain space. For example, Ethereum processes approximately 20-30 transactions per second. As of December 2023. This hinders mass adoption and increases transaction costs to the max. As a result $40-$50 During peak traffic hours.

Past attempts to solve this problem have led to security or decentralization tradeoffs. However, ZKSync provides a solution to scale blockchain systems using zero-knowledge proofs for speed, privacy, and decentralization all at once. It also improves cross-chain compatibility, giving users more options to enter and exit the ecosystem at lower costs.

3. Programmable encryption

Bitcoin, a pioneering blockchain known for its key functions as a store of value and facilitator of peer-to-peer payments, has laid the foundation for future blockchain innovations. However, as the blockchain industry develops, the need for a more diverse and multi-functional system has emerged.

In this context, programmable encryption emerged. This advanced field goes beyond basic cryptography functions and allows developers to create complex, layered solutions on blockchain platforms. Key elements such as zero-knowledge proofs play an important role here. This enhances privacy and security while reducing the computational and financial costs associated with transaction confirmation.

Programmable cryptography has opened the door to numerous innovative applications, especially in enhancing privacy and security in blockchains. for exampleAttendees at the recent ProgCrypto conference used ZuPass, an open source tool that uses programmable cryptography, to register their attendance without revealing any personal information.

4. Rollup as a Service (RaaS)

Like zkSync, Rollup-as-a-Service (RaaS) is another scaling solution that helps blockchain systems achieve higher throughput at low cost and optimal security. Rollups, a core component of RaaS, work by aggregating multiple transactions into a single integrated bundle. This bundle is then verified and recorded within the blockchain’s on-chain database. Operating as a Layer 2 technology, RaaS integrates seamlessly with the underlying blockchain layer (Layer 1) to increase efficiency without compromising its unique security protocols.

The strategic advantage of RaaS lies in its versatility and economic feasibility, making it particularly useful for new blockchain projects regardless of size or domain specificity. In particular, RaaS platforms often offer a variety of rollup strategies, such as unaware rollup and optimistic rollup, each offering unique advantages in terms of transaction speed, security, and cost-effectiveness. This diversity of rollup methodologies allows project developers to choose the optimal solution for their specific needs.

Additionally, RaaS not only provides the required infrastructure elements but also supports a wide range of customization options. This flexibility is critical for fast-growing projects that want to achieve a harmonious alignment of product and market while ensuring an improved user experience.

5. Account abstraction (ERC-4337)

Recent market downturns and negative events have made user experience a top priority for blockchain developers. Account abstraction (ERC-4337) has gained popularity in this context by providing an easy and user-friendly way to interact with decentralized applications (dApps).

Unlike existing blockchain account models, ERC-4337 utilizes smart contract wallets instead of traditional externally owned accounts (EOAs), creating a more secure and private environment for digital asset management. The key innovation of ERC-4337 is its ability to simplify the user experience for a wider audience by obscuring the inherent technical complexities associated with Web3 wallets. This abstraction not only simplifies operational processes for end users, but also improves the overall accessibility of blockchain technology.

Account abstraction also makes it easier for developers to write custom smart contracts for different purposes. Therefore, this could be a driver for large-scale adoption of blockchain systems in 2024 and beyond.

6. Everything on-chain

This is a full circle from Autonomous Worlds to “everything on-chain”. As tokenization increases and off-chain processes become more risky, there is a growing demand for blockchain systems to be on-chain.

Some may see this as a maximalist perspective, but the merits of such a vision cannot be denied. While it is technically impossible to put everything on chain right away, the ideal to pursue is something like complete autonomy, envisioned and enabled in a programmable autonomous world.

With continued innovation at both the fundamental and application levels, it will soon be possible to handle most (if not all) core processes on-chain. This is the goal most industry stakeholders are currently focused on, as is 2024.

7. Defin

“DePIN,” which stands for Decentralized Physical Infrastructure Networks, stands out as one of these groundbreaking buzzwords. This summarizes the growing intersection between decentralized digital technologies and physical infrastructure systems. Imagine a future where the fabric of our daily lives – from the maps we use, the energy that powers our homes, to the internet that keeps us connected – are smartly intertwined with the trust and transparency of blockchain technology. This is what DePIN promises. In other words, it is a decentralized, efficient, and more democratic way to manage and benefit from physical infrastructure.

DePIN enables a collaborative approach to managing these resources instead of relying on central authorities. Everyone has a say in how these resources are used and managed. Integrating smart contracts and Internet of Things (IoT) technologies into the DePIN system makes this possible, enabling smooth operations and innovative solutions to age-old problems in infrastructure management.

Read: An unprecedented surge in real-world Web3 use cases: The Alchemy Report