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How Blockchain is Evolving: Key Trends Driving Change.
Learn more about this technology and where it’s heading in 2025.,
New Architectures
Pixabay
As blockchain systems scale up, handling functions like execution, consensus, and data availability get increasingly complex. Enter the modular architecture, where those functions can be handled on separate blockchain nodes, allowing faster and lighter transactions. As industries increasingly adopt blockchain technology, scalable systems have become paramount.
It’s also great news for startups that no longer need base-level blockchains to create their execution layers. Better still, this system saves time-to-market and infrastructure costs while improving privacy and compliance.
Increased Tokenization
Tokenizing real-world assets (RWA) is one of the biggest Web3 innovations. In fact, not only can physical assets be tokenized, but financial products like bonds and commodities, too. A tokenized asset allows fractional ownership, meaning investors can buy a share of this asset instead of the whole thing. For instance, a real estate property can be tokenized and sold to multiple investors. It results in greater liquidity for assets that would otherwise take much longer to be sold.
Blockchain and Healthcare
The adoption of blockchain technology in the healthcare industry is rising impressively fast. According to predictions, this sector should grow at a CAGR above 63% until 2030. Last year, projections pointed to a market size of USD 214.86 billion. Indeed, this technology has become crucial for healthcare companies, providing improved supply chain transparency, interoperability, and data privacy. More companies have been using it to create EHRs (Electronic Health Records), process claims, and streamline billing.
The Rise of ZKP (Zero-Knowledge Proof)
Zero-knowledge proofs (ZKPs) are emerging as a game-changer for blockchain scalability and privacy. This cryptographic method allows one party to prove the validity of information to another without revealing the data itself. By enabling secure, private transactions at scale, ZKPs enhance efficiency while maintaining confidentiality, a key feature for industries like finance and healthcare. As adoption grows, expect ZKPs to play a pivotal role in balancing transparency and privacy across decentralized systems.
AI Integration
Blockchain’s potential can be greatly expanded by AI integration. The secure and immutable ledger provides the perfect environment for AI algorithms to operate, automating even more processes and suggesting improvements while enhancing decision-making. AI integration is already vital for supply chain management across several industries, including finance and healthcare.
Defi Compliance
Governments worldwide have been trying to regulate DeFi (decentralized finance) without stifling innovation. However, the challenge goes both ways: while policymakers want to make it more transparent, developers need to implement new protocols, such as KYC (Know Your Customer) and AML (Anti-Money Laundering) into their verification systems. Solutions like DID (decentralized identity) and tiered compliance are gaining space in this context.