2024 Was the Year of Breaking Through

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As a researcher who has been closely observing the blockchain landscape for over a decade now, I can confidently say that 2024 will go down as the year when the tides truly turned for this transformative technology. The relentless march of progress, unwaveringly forward, was reminiscent of a well-oiled machine, and it’s been an exhilarating ride to be part of this journey.

2024 stands out as the breakthrough year for blockchain, with significant transformations unfolding consistently from the start and never slowing down. What’s remarkable is that throughout this year, there were no major shifts in direction or market fluctuations; instead, progress was marked by a continuous surge of speed.

2023 came to an end with the expectation that 2024 would be promising. The European Union’s Markets in Crypto Assets (MICA) act was set to take effect, providing a legal foundation for crypto-assets, real-world assets, and stablecoins within Europe. Businesses were already starting to pop up across the region in preparation for this upcoming change.

As we stepped into 2024, good news about Bitcoin ETF and Ethereum approvals by the Securities and Exchange Commission (SEC) started rolling in. The Bitcoin ETF received its official green light just 10 days into the year, while Ethereum followed suit in May. By mid-year, the discourse moved from discussing two exciting events to a broader vision of global regulatory alignment: crypto, digital assets, and stablecoins were being legally recognized for individual and corporate use almost everywhere around the globe.

In summary, a series of regulatory and legal victories in the U.S., culminating in an election with far-reaching implications, has significantly reshaped the landscape of the blockchain industry. On November 6th, the world of blockchain woke up to a transformed environment.

The evolution towards regulatory endorsements, open-source blockchains, and legitimate digital currencies has accelerated from a slow pace to a full sprint. Notably, private blockchain systems, tokenized savings, and other elements of the blockchain infrastructure that were previously considered more acceptable by regulators than public ones have seen their worth and relevance decline significantly. Clients who initially approached this with caution are now finding themselves concerned about falling behind in an increasingly competitive landscape.

Two months ago, the U.S. trailed behind other countries in terms of global regulatory alignment regarding digital assets. However, it now appears that the U.S. may swiftly catch up and potentially surpass others, speeding towards widespread adoption and expansion of digital assets at an accelerated pace. The initial appointments within Trump’s cabinet, though not yet effective until 2025, exhibit a clear preference for cryptocurrencies and digital assets.

On November 26th, I witnessed a federal appeals court’s rejection of the Treasury Department’s attempt to sanction Tornado Cash, an anonymous payment software. The Treasury has accused this technology of being used to launder money for North Korea. However, proponents of cryptocurrency technology did not dispute this claim but instead argued that the focus should be on apprehending individuals or entities involved, rather than targeting a specific piece of software, given its decentralized nature and lack of identified owner or operator. The U.S. and Europe are currently investigating and pursuing cases against those deemed responsible.

In the future, privacy technology will play a crucial role in encouraging businesses and institutions to adopt blockchain technology. Tornado Cash, for instance, combined two distinct ideas: privacy and anonymity, which didn’t appeal to business users. Instead, they seek to conceal sensitive information from competitors, not make anonymous transactions. A positive court verdict on the issue of privacy will likely increase business users’ confidence in using privacy technologies within blockchain networks.

2024 seems like a promising year for us crypto investors, but I can’t shake off the feeling that dark clouds are gathering on the horizon. It’s not wise to turn a blind eye to these ominous signs. Historically, the blockchain industry has had a tendency to present “gifts” around holiday seasons – these aren’t the kind of presents you’d find under the tree though. These “gifts” are usually instances of grand frauds, thefts, or businesses crumbling, which have often been critical points for our sector.

This year, while we haven’t experienced a significant crash that would make political discussions taboo during holiday get-togethers, it appears that we are racing through the usual stages of the cryptocurrency market cycle at an accelerated pace.

If you’ve kept up with pump.fun, you might have noticed the excitement reminiscent of a casino has swept in. Individuals are getting creative by linking themselves to toilets and devising memes to generate tradeable tokens for profit. The situation can be amusing at times, but it becomes concerning when someone risks their child’s college savings.

Don’t let some clouds on the horizon ruin the positive feelings about the end of the year. It was an exceptional year for blockchain technology in 2024, and instead of changing course, we picked up the pace significantly. In 2025, expect a revolution fueled by acceleration and lots of bright possibilities.

In this article, it’s important to remember that the opinions shared are solely those of the writer and may not align with those held by CoinDesk, Inc., its proprietors, or associated entities.

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2024-12-16 19:15