Web3 Development Trends for 2024

January 3, 2009 is considered to be the official date of bitcoin's emergence. On this day, a certain Satoshi Nakamoto presented to the world a different view of data storage. The technology at the heart of his discovery is called "blockchain". It continues to revolutionize IT and also creates new trends of Web3 development in 2024.

During the last 15 years, we have seen many developments in the world of cryptocurrencies:

• the incredible growth of bitcoin in 2021
• the boom of NFTs and a record $69 million sale
• dozens of successful ICOs and much more

Beyond the screen of these events there are hundreds of thousands dollars lost due to shitcoins, scam projects and the collapse of centralized exchanges. It is worth remembering that we are talking about a sphere that is still not fully controlled by the state.

The development of Web3 is just beginning. Whether you are an investor or a developer, you have the opportunity to become part of this ecosystem. The more you understand the future trends of Web3 development in 2024 - the higher your chances of success.

What is Web3?

Web3 is a term that describes the new generation of the Internet, it gained fame and was coined by Gavin Wood in 2014. Incidentally, Gavin is a significant figure in the crypto industry; he is the creator of Polkadot, co-founder of Ethereum and the first to propose the development of the Solidity smart contract language.

Web3 is envisioned as an ecosystem that operates according to the following principles:

• decentralization
• online privacy
• the use of cryptocurrencies and tokens

This concept opens a springboard for the creation of applications and technologies that solve current problems in the sector of medicine, entertainment, finance and others.

Main Web3 development trends in 2024

Web3 development, like the majority of innovative technologies, is designed to improve human interaction with different areas of life. Knowing that the success of any product depends on the value it offers, we have selected the best areas of Web3 development in 2024, namely:

• Decentralized Finance (DeFi)
• X-to-Earn applications
• Web3 social networks
• Modular blockchains
• Zero-disclosure technology (zkp), etc.

Each of these and other Web3 development trends provides its own value.

For example, DeFi solves the problems of the traditional banking system, mass adoption of cryptocurrencies is more likely to occur due to X-to-Earn applications and Web3 social networks, modular blockchains can solve Buterin's trilemma and ZKP will provide increased privacy in the blockchain.

Decentralized Finance (DeFi)

Most processes in the financial system are controlled by centralized authorities. This results in problems such as high transaction costs, bankruptcy risk, corruption and others. For example, not so long ago, the decision to open an account or give you a loan was influenced by the color of your skin.

In contrast, DeFi is a financial services model that is based on blockchain. The system works thanks to smart contracts and does not require the involvement of a third party in the transaction. This allows DeFi to have advantages such as:

• resistance to censorship
• security
• anonymity

Most of DeFi's applications are implemented using Ethereum, and the smart contracts mentioned earlier are executed, thanks to the EVM (Ethereum Virtual Machine). Like any blockchain, Ethereum has its drawbacks. For example, it is only capable of executing 10-12 transactions per second (TPS), while Solana is capable of 60,000 TPS.

For this reason, Web3 developers in the DeFi sector are creating various solutions such as Neon EVM. This is a tool that allows transactions to be processed on the Solana blockchain using the Solidity programming language and other Ethereum features.

The demand for decentralized finance is growing, but the current state of things suggests that the DeFi sector still needs improvements. This is why Web3 development in this niche will be in demand for the foreseeable future.

Regenerative Finance (ReFi)

ReFi is a financial system that prioritizes sustainability and the health of ecosystems, communities and the world over monetary gain.

It represents a departure from traditional financial systems, which have been criticized for placing a higher priority on short-term gains than long-term sustainability.

ReFi brings together two distinct disciplines:

• decentralized finance
• regenerative economics

DeFi aims to eliminate opaque centralized infrastructure and democratize access to financial services. It also standardizes the governance of the financial system itself.

Regenerative economics, on the other hand, emphasizes balanced, circulating capital flows. It takes into account positive externalities while caring for people and society.

Web3 development trends in 2024 cannot be imagined without ReFi. Investments in this area can provide benefits such as:

• increased revenues
• optimization of resource efficiency
• positive impact on society and the environment

If you want to contribute to the development of the green economy, choose solutions in the ReFi niche. You'll also need a team of experienced professionals like Merehead to implement them. Contact us today to start developing a Web3 application in this sector.

Social media Web3

How much do you think your attention is worth? The answer is $900 per year. That's the amount Facebook sells your data to advertisers for, according to “LetAlone‘. These and other problems of today's social networks are aimed at solving by Web3 enthusiasts around the world.

In their view, Web3 social networks should:

• be fully decentralized
• give the user the right to own their data
• create a social graph that is built on blockchain

The social graph is the principle of structuring your online activities, preferences and interests. The short videos you see on TikTok have been suggested to you based on your social graph, just like advertisements.

The creation of Web3 social networks is possible by deploying DApps on different blockchains such as Ethereum, Binance Smart Chain or Solana. The working principle is based on smart contracts, Solidity can be used.

Also, an important part are NFTs - non-mutualizable tokens that confirm the identity of the created content. Often the ERC-721 standard is used to write them.

Today there is a need to develop current Web3 social networks, such as Mastadon - analog of Twitter, Mirror - analog of Medium, as well as to create new solutions based on blockchain. Therefore, creating a Web3 mobile app in this niche can be an interesting and profitable solution for you.

Virtual Arts and NFT

NFTs are non fungible tokens that are used as proof of ownership of art objects such as paintings, music, etc. Artists create their own collections and sell them on special platforms like Opensea.

Virtual arts are a more reliable and modern way of monetizing content. Among the main differences between the traditional art sector and NFT you will find:

• Storage. Traditional artworks require storage space, while NFTs utilize blockchain.
• Places of sale. Traditional art is sold online, in art galleries and auction houses. NFT realizes the sale on dedicated online marketplaces.
• Monetizatio NFT art allows you to profit not only from the sale of the painting, but also as a commission from future transactions.

NFT creation trends in 2024 promise a wide landscape for Web3 development. Besides creating paintings and music, experts in this field can integrate NFTs into games and real estate, use them to create a digital personality, etc.

NFT's best selling collection is the Bored Ape Yacht Club. Their total sales amount to more than $4 billion. These and other NFT sales cases are setting new Web3 development trends in 2024, encouraging users to familiarize themselves with blockchain and create their own pieces of art.

X-to-Earn applications

X-to-Earn applications are an ideal way to integrate cryptocurrency into users' daily lives by incentivizing them to use the blockchain.

The technology is still evolving, which means that many other crypto-monetization models will emerge over time. However, right now, several X-to-Earn strategies are gaining momentum, such as:

• Play-to-Earn (P2E). Performance-based rewards for blockchain-based games.
• Learn-to-Earn (L2E). Students can be rewarded for completing lessons, assignments, and quizzes.
• Move-to-earn (M2E). To encourage physical activity and fitness, users are rewarded for being on the move.
• Watch-to-earn (W2E). Users are rewarded for watching videos and other types of digital content.

The first push to realize the full benefits of blockchain may be these types of applications. Why? Because nothing incentivizes understanding the technology like financial gain. Thanks to this, Web3 development in the X-to-Earn niche will be relevant and in demand in the next few years.

AR & VR

The transition from Web 2.0 to Web 3.0 has paved a new path to virtualization. AR and VR can be the backbone of digital innovation for Web3 platforms such as games, dex exchanges and social networks. Similar Web3 development trends in 2024 could significantly improve the blockchain industry.

AR in Web3 involves superimposing virtual elements on the real world using smartphones, tablets or AR glasses. With the advent of blockchain technology, AR experiences can become more decentralized, transparent and secure, creating products such as:

• Decentralized AR exchanges. Blockchain can facilitate peer-to-peer exchanges of AR content, allowing creators to sell their funds without intermediaries.
• Tokenization. AR assets such as filters, collectibles or even entire worlds can be tokenized on the blockchain.
• User incentivization. AR applications in the Web3 sector can reward users with cryptocurrency tokens or NFT for interacting with AR content or contributing to the project's ecosystem.

VR, in turn, involves creating immersive, computer-generated environments that users can explore and interact with.

In combination with blockchain technology, VR technology can become more decentralized and provide benefits such as:

• VR property ownership. Using blockchain, users can own virtual real estate or VR spaces in the form of NFTs.
• Cross-platform interoperability. Web3 technologies enable interoperability between different VR platforms and ecosystems, allowing users to move their assets between applications and worlds.

According to Forbes, the AI industry will grow by 20% in 2024. In the middle of 2024, we will be able to see companies competing in the virtual world, thanks to the merger of AR and VR technologies. They will help them enhance brand marketing and customer experience.

Artificial intelligence in Web3 development

Artificial intelligence can play an important role in Web3 development by improving various aspects of decentralized applications and blockchain ecosystems. By utilizing AI, developers can create better solutions for areas such as GameFi, social media and more.

Here are the main ways in which artificial intelligence can be used in Web3 application development:

• Analyzing and securing smart contracts. Using machine learning algorithms, developers can identify potential bugs, backdoors or vulnerabilities in the code of smart contracts, making the ecosystem more secure and less susceptible to hacks and exploits.
• Applications in decentralized finance. AI algorithms can analyze market data and user behavior to optimize DeFi strategies and provide personalized financial services.
• Decentralized oracles. AI-based oracles can improve data reliability and accuracy by cross-referencing information from different sources and weeding out incorrect or manipulated data.
• Tokenomics and economic models. This allows optimizing token distribution, inflation rates and other economic parameters to create stable and sustainable ecosystems.

The use of artificial intelligence is a new stage in the development of Web3 applications. The combination of these technologies will improve such traditional fields of activity as medicine, real estate and commerce.

For example, neural networks in healthcare, can improve disease diagnosis, task administration, and predict potential disease outbreaks. In turn, blockchain will enable a more decentralized and confidential data storage environment.

Modular blockchains

Enthusiasts have long been working to create an optimal blockchain that is both decentralized, secure, and scalable. Based on Buterin's trilemma, it is possible to realize only two parameters while sacrificing the third. However, the emergence of modular blockchains can fundamentally change the way we look at these things.

To understand the innovativeness of this technology, we need to remember what functions any blockchain must perform:

• Execution - the ability to process transactions
• Consensus - a principle that describes how network participants agree on the validation of transactions, such as Proof-of-Work or Proof-of-Stake.
• Data availability - the ability of consensus participants to download and process data

Monolithic blockchains such as Ethereum perform all three functions simultaneously. In this example, the blockchain focuses on decentralization and consensus, so the Ethereum network can only perform 15 transactions per second, with gas fees as high as $200 per transaction at high loads.

In return, modular blockchains like Celestia or Polygon Avail are emerging. They delegate functions between nodes, thereby making the entire network run more efficiently.

Identity and privacy

As blockchain and decentralized applications proliferate, identity and privacy issues come to the forefront. Web3 development trends in 2024 will affect this segment to provide benefits such as:

• security
• electronic identity
• ownership and control over user data

One of the core principles driving identity innovation in Web3 is the concept of Self-Sovereign Identity (SSI).

SSI gives users full control over their digital identity, reducing their reliance on centralized authorities. Instead of entrusting sensitive information to third-party organizations, users store encrypted data in a blockchain.

Decentralized identifiers (DIDs) and verifiable credentials are used to provide SSI. DIDs are unique identifiers associated with users' cryptographic keys. They provide a secure binding of verifiable credentials.

This is just a small part of what Web3 developers use to ensure privacy and security on the web. Apart from these, you will also find Soulbound and ZKP technology if you decide to develop applications in this niche.

Zero-disclosure proof technology

Public blockchains still face a number of limitations, particularly the lack of data privacy. Zero-knowledge proof (ZKP) technology can address this problem, setting new trends for Web3 development in 2024.

Zero-knowledge proof is a principle through which it is possible to confirm information without revealing the information itself. The technology is reminiscent of the board game "spy", where participants try to prove that they know a word without naming it.

Two types of zkp are distinguished:

• Interactive - one of the participants repeats the process of proof several times until the other party is convinced of its validity
• Non-interactive - one of the parties prepares a proof in advance, which is verified after the fact.

Right now, there is development of projects like Zcash and zkSync. They could be revolutionary solutions in blockchain, completely changing the way we think about the technology.

How to prepare for future Web3 trends?

First, accept the reality that blockchain will stay with you for a long time. After that, consider what value you could give to this field. Often, the world of cryptocurrencies has analogs to problems from traditional sectors.

If you want to be part of the most promising technology of the 21st century, create decentralized applications and one day set Web3 development trends yourself, you're in the right place.

Take advantage of Merehead's services and get all the benefits of working with us. Upon completion of your work, you will not only create a successful blockchain solution, but also create a community of professionals around you, with whom you will continue communicating in the next projects. Hurry up!