Five Major Trends in Blockchain Technology Development in 2023

Important Ethereum Upgrade

In 2023, Ethereum will undergo two important upgrades:

1. Shanghai Upgrade: Open staking withdrawals, expected to increase staking scale and intensify competition in staking services.

2. Cancun Upgrade: May include the following important content:

   • Proto-Danksharding: Aims to significantly reduce mainnet transaction fees, paving the way for L2 development.

   • EVM Object Format (EOF): Optimize EVM, improve contract performance and reduce gas consumption.

In addition, Ethereum is also preparing for future technological development:

• The KZG Ceremony started in January, laying the cryptographic foundation for Proto-danksharding.

• The development of Danksharding standards and the overcoming of technical obstacles are underway.

MEV, regulation, and anti-censorship are also important topics for Ethereum in 2023:

• Promote the decentralization of builders
• Expand the cross-chain MEV market
• Improve the protocol layer PBS to address the staked "luck value" issue.
• Build a decentralized Block Builder network

Staking Service Innovation

With the Ethereum Merge and Shanghai upgrade, the Staking sector will welcome multiple innovations:

1. Liquid Staking: Increase the liquidity of staked tokens

2. Decentralized Staking: Improve existing solutions such as RocketPool's liquidity.

3. Restaking: The concept of "secondary staking" proposed by EigenLayer has received considerable attention.

4. Decentralized Validator Network ( DVT ): SSV and Obol Explore New Technological Solutions

5. Staking yield stabilization: Alleviating the issue of excessive yield disparity among different nodes.

![Top 5 Technology Trends to Watch in 2023: Ethereum Upgrade, Staking, Modularization, ZK Applications, and Account Abstraction](https://img-cdn.gateio.im/webp-social/moments-e5a4f05492242a9c40aa16f6c9839598.webp01

Modular Blockchain Technology Progress

Modular Blockchain will make breakthroughs on multiple levels:

1. New competitors are emerging in the data availability layer, such as Polygon Avail.

2. A more flexible and efficient execution layer, such as Fuel using UTXO and parallel VM to improve efficiency.

3. Layer 2 Optimization Solutions:

   • Modular Rollup ) like AltLayer(
   • Quickly launch Layer 2 tools ) like OP Stack (
   • Application-specific Rollup construction tool ) such as Stackr(

4. Sequencer Decentralization:

   • Shared sequencer service ) like Espresso(
   • Exploration of decentralized sequencer design方案

5. Layer 3 Ecosystem Development:

   • Provide further vertical scalability based on Layer 2
   • Such as Starknet's Slush, zkSync's Opportunity, etc.

![Top 5 Technology Trends to Watch in 2023: Ethereum Upgrade, Staking, Modularity, ZK Applications, and Account Abstraction])https://img-cdn.gateio.im/webp-social/moments-139713a573c670a4e3f9aeebe86bca6d.webp(

Expansion of ZK Technology Applications

zkEVM is set to launch multiple testnets and mainnets in 2023, but technological maturity will still take time. The application of ZK in non-scaling areas is worth looking forward to, especially zkBridge:

• Verifier signature ZK化
• PoS consensus process ZK-ification

![Five Major Technology Trends to Watch in 2023: Ethereum Upgrades, Staking, Modularity, ZK Applications, and Account Abstraction])https://img-cdn.gateio.im/webp-social/moments-238b9ae3d0321358165520158098244d.webp(

Wallet and User-End Application Innovation

1. MPC )TSS( is expected to become a standard configuration for wallets, supporting more application scenarios.

2. Account abstraction )AA( technology is becoming increasingly mature, and products combined with MPC are worth looking forward to.

3. Lightning Network Application Innovation:

   • OmniBOLK Taro introduces stablecoins and other customized assets
   • DLC non-custodial solutions expand financial derivative applications
   • Combined with the social protocol Nostr brings new traffic

4. The L2 payment solutions after proto-danksharding will further improve in cost and efficiency.

Blockchain technology will make breakthroughs in multiple directions in 2023, laying the foundation for the long-term development of the industry. The improvement of developer tools and the rise of new programming language ecosystems will also accumulate technological momentum for the next round of industry cycles.

![Top 5 Technology Trends to Watch in 2023: Ethereum Upgrade, Staking, Modularity, ZK Applications, and Account Abstraction])https://img-cdn.gateio.im/webp-social/moments-e7c85272790ae4bf305311a818e73c69.webp(