2024 Highlights Major Advances in Crypto Technology and Trends
This special edition of the Protocol reviews 2024's significant developments and anticipates future trends in blockchain technology.
Key milestones, trends, and predictions shaping the next era of crypto are discussed.
1. A Look Back: Top Crypto Tech Milestones of 2024
Ethereum’s Duncun Upgrade: In 2024, Ethereum activated the Cancun-Deneb (Dencun) upgrade, its most significant network improvement. This upgrade enhanced scalability and reduced data fees, introducing proto-danksharding to lower costs for Layer-2 rollups by improving transaction throughput. The changes aimed to support developers and advance Ethereum’s roadmap as the leading smart contract platform.
Solana Locks in Value: Solana's DeFi total value locked (TVL) reached $9 billion, reflecting increased user engagement and ecosystem growth. Institutional adoption from firms like Franklin Templeton and Société Générale contributed significantly. Robinhood added SOL to its trading platform, and Cboe Global Markets filed for Solana-linked ETFs.
Quantum Computing’s Warning Bell: Google’s advancements in quantum computing raised concerns about blockchain security. The new quantum chip could solve complex problems beyond classical computers, prompting discussions on Bitcoin’s reliance on traditional encryption. Experts highlighted the urgency for transitioning to quantum-resistant encryption to protect cryptocurrencies.
Layer-2 Adoption Soars: Projects like Arbitrum, Optimism, and Base addressed Ethereum’s scalability issues. Arbitrum surpassed 1 billion transactions due to strong developer support, while Optimism expanded its influence through OP Stack technology. Base gained traction with Franklin Templeton launching a tokenized treasury fund on its network.
DeFi Leaders Innovate: Aave became central to a new fund launched by Grayscale Investments, providing exposure to its governance token (AAVE). Uniswap Labs announced Unichain, a decentralized Layer-2 blockchain built on Optimism’s OP Stack, aiming for a 2025 mainnet launch. MakerDAO rebranded to Sky, introducing new governance and stablecoins as part of its Endgame Plan.
2. Emerging Trends for 2025
AI x Blockchain: The integration of AI and blockchain is expected to enhance identity verification, predictive analytics, and smart contract automation.
Regulated Crypto Hubs: Jurisdictions such as Hong Kong, Dubai, and Singapore are becoming crypto-friendly innovation centers, attracting startups and institutional investors.
Interoperability Takes Center Stage: Cross-chain protocols will facilitate seamless asset transfers and collaboration across blockchain ecosystems.
3. Developer Spotlight: 2024 in Numbers
The Electric Capital Developer Report indicated a 35% increase in active blockchain developers. Ethereum, Solana, Polkadot, Base, and Polygon led development efforts, with Solana attracting 7,625 new developers, surpassing Ethereum due to low fees and fast transactions.
4. What to Watch in 2025
Ethereum’s Pectra Upgrade: The upcoming Pectra upgrade will be rolled out in two phases, Prague and Electra, enhancing validator efficiency and network security.
Scaling Solutions: ZK-rollups and modular blockchains are expected to drive scalability, enhancing privacy and efficiency without compromising decentralization.
Decentralized Identity: Decentralized identity solutions will redefine interactions on Web3 platforms, allowing users control over personal data without centralized authorities.
5. Final Thought
2024 established a foundation for the next chapter in crypto, with advancements in scalability, DeFi, and security setting the stage for transformative developments ahead.