The Web3 Evolution: 2024 and Further
Web3 has come a long way in the past few years, evolving from a niche idea to symbolize a move toward greater user control, transparency, and digital ownership. 2024 feels like a turning point as crypto is thriving again, and technical advancements are made across the Web3 space.
In this blog, we dive into the evolution of Web3, reflecting on its journey as we near the end of 2024.
What is Web3
As people began to recognize the downsides of Web2, the idea of Web3 began to take shape. With the advent of blockchain technology, in 2009, Bitcoin burst onto the scene as a decentralized digital currency, laying the groundwork for a more open internet. Fast forward to 2015, and Ethereum came along, introducing the concept of smart contracts - these are essentially self-executing agreements where the terms are written into code.
Web3 is the next evolution of the internet, built on blockchain technology, which decentralizes control from large corporations back to the users. At its core, Web3 promotes a peer-to-peer network structure that eliminates the need for central authorities.
Key benefits
Decentralized Control: Web3 distributes control across a network rather than concentrating it in a single company or entity. This gives users more control over their data and online interactions, reducing the dominance of tech giants.
Trustless Systems: Web3 removes the need for intermediaries like banks or institutions in transactions. Anyone can participate without needing permission, creating an inclusive and open environment.
Enhanced Security and Privacy: Web3 uses cryptographic techniques to safeguard data and ensures users have control over who can access their personal information, enhancing privacy and reducing the risk of data breaches.
Interoperability: Web3 platforms can easily integrate and exchange data and assets between different applications, making cross-platform interaction seamless and user-friendly.
Full Ownership of Data: Unlike Web2, where big corporations own and monetize user data, Web3 allows users to maintain ownership of their information. You decide how your data is used and can even choose to monetize it if you wish.
The State of Web3 in 2024
In 2024, Web3 is more vibrant and promising than ever. The focus on decentralization has led to significant advancements in technology, user experience, and community engagement.
Decentralized Finance (DeFi) Growth
The appeal of DeFi is evident in the numbers. Decentralized Finance (DeFi) Market size was valued at USD 14.35 billion in 2023 and is expected to grow at a CAGR of over 46.8% between 2024 and 2032. This growth is driven by the increasing adoption of decentralized autonomous organizations (DAOs), which play a crucial role in transforming governance and decision-making within DeFi ecosystems.
DeFi has been a game-changer in the Web3 world, allowing users to access financial services without the need for banks or other intermediaries. Platforms like Uniswap and Aave are leading this charge, enabling everything from trading to lending - all while users maintain control of their assets.
Non-Fungible Tokens (NFTs) and Digital Ownership
NFTs, once the centerpiece of digital art and collectibles, have extended their reach into industries like gaming and real estate. However, in 2024, they seem to be losing steam. While NFTs are still being used in various fields, their appeal has diminished, and their short market lifespan has made it difficult for them to maintain momentum.
Although NFTs aren’t entirely out of the picture, the current trend shows a decline in their popularity and adoption. There’s still hope for innovation or resurgence in the space, but for now, 2024 feels more like a downturn for NFTs than a breakthrough year.
The Role of DAOs (Decentralized Autonomous Organizations)
DAOs have been around since 2016, but they are on the verge of going mainstream, becoming the next relevant trend in the space. Web3 technologies are maturing, and due to the pandemic, more people are looking for new ways of working.
For example, organizations operate by allowing members to make decisions collectively. This means that everyone involved has a say, fostering a sense of community and accountability.
DAOs like Uniswap have successfully implemented this model, letting users participate in governance decisions. Another interesting example is ConstitutionDAO, which recently attempted to buy a rare copy of the U.S. Constitution through crowdfunding efforts.
Layer 2 Solutions and Scalability
Blockchain’s scalability challenges are being addressed in 2024 by Layer 2 (L2) solutions, which enhance transaction throughput without sacrificing security. ZK-rollups, such as ZkSync and StarkNet, bundle multiple transactions into a single batch, allowing Ethereum to process thousands of transactions per second (TPS) compared to its original 15 TPS limit.
Polygon’s zkEVM enables Ethereum smart contracts on its L2 network, reducing transaction costs to as low as $0.01, a significant improvement over Ethereum’s high gas fees. Additionally, the Bitcoin Lightning Network has grown significantly, with liquidity increasing by 25% in 2024, demonstrating the importance of L2 solutions for both Ethereum and Bitcoin.
Orochi is proud to be contributing to this shift as we develop the world’s first zkDA Layer, ensuring secure scalability across all blockchains with our suite of innovative products. By using recursive proofs to validate every step of data processing, our zkDA Layer enhances both scalability and security, playing a key role in enabling more efficient ecosystems.
AI And Blockchain: A Powerful Combination
In 2024, the convergence of blockchain and artificial intelligence (AI) is shaping up to be one of the most transformative trends.
A key application of this integration is AI-powered smart contracts. By leveraging machine learning, these contracts can audit and optimize themselves, minimizing human error and improving efficiency. For instance, autonomous smart contracts dynamically adjust their algorithms based on real-time data, offering businesses adaptive and reliable solutions.
Ex: Fetch.ai, a platform utilizing AI to power autonomous agents for tasks like data analysis, supply chain management, and energy grid optimization. Fetch.ai’s decentralized network has gained significant traction in 2024, demonstrating the potential of AI-driven blockchain innovations.
Emerging Crypto Coins
While Bitcoin and Ethereum continue to dominate the blockchain space, 2024 has brought attention to emerging players like Aptos and Sui, which offer alternative consensus mechanisms and fresh innovations. However, the rise of multiple blockchains has amplified the need for cross-chain interoperability.
Protocols like LayerZero have processed billions in cross-chain transactions, forming over 100 partnerships, while Cosmos Network’s IBC protocol has seen a 30% rise in adoption, with over 50 blockchains utilizing it. These advancements highlight the growing emphasis on seamless connectivity in the crypto ecosystem.
Key Trends Driving Web3 Forward
The future will likely see increased adoption of decentralized finance (DeFi) services, further integration of NFTs across entertainment and gaming, and the rise of decentralized autonomous organizations (DAOs), allowing communities to self-govern.
Data Availability (DA) will also become even more critical as blockchain technology scales. Ensuring that data is accessible, verifiable, and efficiently stored is essential to support the growing number of decentralized applications (dApps) and to maintain trust in a decentralized ecosystem.
Orochi Network’s zkDA Layer is at the forefront of solving the Data Availability challenge, offering scalable solutions that ensure data integrity while maintaining security and privacy. As Web3 grows, our zkDA Layer will be a cornerstone in ensuring data integrity within the space, helping secure scaling blockchains.
Conclusion
As we wrap up our exploration of Web3 in 2024, it’s exciting to see how much this new phase of the internet is changing the way we connect, share, and make decisions.
At Orochi, we’re thrilled to be part of this journey, offering solutions that prioritize decentralization while ensuring security and scalability. We believe that by collaborating and supporting one another, we can achieve even greater things in this vibrant Web3 space.
About Orochi Network
Orochi Network is the world's first zkDA Layer, recognized by the Ethereum Foundation. By leveraging Zero-Knowledge Proofs (ZKPs), Orochi ensures data integrity, security, and interoperability, empowering developers with the tools to overcome the limitations of on-chain execution and scalability in Web3. At the core, Orochi offers the world's first verifiable database designed for enterprises, AI/ML, zkML, zkVMs, verifiable computation, Web3 applications, and more.
