Polkadot 2023 Review and 2024 Outlook

The year 2023 can be described as one of reflection, turning points, and innovation. As a research institution that has focused on Polkadot and its ecosystem for several consecutive years, we have reviewed the significant events of the past year for Polkadot and made predictions about the changes that may occur in 2024.

Review of Important Events in 2023

Ethereum upgrade Layer2 is in full swing

Ethereum completed the Shanghai upgrade in 2023, unlocking staked ETH. Layer 2 projects like Arbitrum and Optimism also made significant progress. These upgrades have promoted the decentralization process of the Ethereum network and laid the foundation for the advent of the DeFi 2.0 era.

Polkadot 1.0 officially delivered, Polkadot 2.0 proposed

Polkadot announced the delivery of version 1.0 in July 2023, realizing all the functionalities outlined in the white paper. At the same time, Dr. Gavin introduced the concept of Polkadot 2.0, which introduces new resource allocation methods such as core time, pointing the way for Polkadot's future development.

The rise of blockchain tools, multi-chain ecosystems become mainstream

The year 2023 witnessed the rise of launch tools such as Arbitrum Orbit and ZK Stack. These tools provide developers with more convenient blockchain building capabilities, promoting the development of a multichain ecosystem. Polkadot's multichain architecture demonstrates unique advantages in this trend.

Proposed a new concept of modularization

The concept of modular blockchain has attracted widespread attention in 2023, especially with the large-scale airdrop of Celestia. This concept aims to address issues such as scalability and flexibility in blockchain, complementing the multi-chain design philosophy of Polkadot.

Inscription and Fairlaunch are creating a new wave

The concept of inscriptions sparked a craze by the end of 2023, with projects like ORDI achieving significant success. This new form of asset not only brought new investment opportunities but, more importantly, promoted the idea of fair issuance (fairlaunch).

BTC Ecological Awakening

With the popularity of the inscription concept, the BTC ecosystem has ushered in new development opportunities. Some projects like BitStable and MultiBit have emerged against this backdrop, contributing to the prosperity of the BTC ecosystem.

The concept of DePIN is hot.

The decentralized physical infrastructure network ( DePIN ) has become a hot concept in 2023. There are also several DePIN projects in the Polkadot ecosystem, such as Bittensor and peaq network, which have made explorations in the fields of AI and energy respectively.

Exploring the multi-chain development of the Polkadot ecosystem projects

In 2023, several Polkadot ecosystem projects began to explore multi-chain development strategies. For example, Phala Network collaborated with Polygon, and Astar announced the launch of Astar zkEVM, among others. These initiatives enhanced the compatibility and openness of the Polkadot ecosystem.

Regulatory oversight continues to strengthen

In 2023, regulatory authorities strengthened oversight of centralized exchanges and crypto assets. Polkadot's native token DOT exhibited strong resilience during this process and was classified as software rather than a security.

Polkadot further decentralization

Polkadot has further advanced the decentralization of its governance and market operations through initiatives such as the launch of OpenGov and the Decentralized Future Plan. These initiatives aim to cultivate a more prosperous and self-sufficient Polkadot network.

10 Predictions for 2024

1. The four key technologies of Polkadot are about to be launched: including Agile Core Time, On-Demand Parachains, Ethereum Snowbridge, and Kusama Bridge.

2. New developments after Polkadot 2.0: Flexible scaling technology is expected to be implemented, including asynchronous support and the Sassafras algorithm.

3. ETFs can revitalize the industry: The approval of a BTC ETF may attract more institutional investors and boost overall market confidence.

4. The BTC ecosystem may experience explosive growth: With the development of BTC Layer 2 and cross-chain applications, the BTC ecosystem is likely to see a surge in growth.

5. Inscriptions give rise to new gameplay: It is expected that inscriptions will combine with airdrops, NFTs, etc., to create new project marketing and business models.

6. RWA may become a hot track in 2024: As the policy environment improves, the RWA market is likely to grow rapidly and even reach a scale of hundreds of billions of dollars.

7. DePIN may usher in a wave of application implementation: More DePIN projects may achieve large-scale applications, especially in fields such as communication and storage.

8. The further explosion of chains and applications: It is expected that there will be a "Chain Summer" similar to the DeFi Summer of 2020, while the development of application chains will also accelerate.

9. More "Web2.5" cases: The integration of traditional enterprises with blockchain will further deepen, and the Polkadot ecosystem may welcome more cooperation cases.

10. GameFi is worth looking forward to: Although GameFi still faces challenges, 2024 may see the emergence of more high-quality GameFi products.

Overall, 2024 is expected to bring new development opportunities for Polkadot and the entire Web3 industry. With the maturation of technology, clearer regulations, and the implementation of applications, we look forward to seeing more innovation and breakthroughs. As Dr. Gavin said: "May there be more freedom, peace, and happiness in the world!"