Crypto Tech 2024 Review: Ethereum Duncun, Solana Surge, and Layer-2 Boom

This special edition of the protocol looks back at the groundbreaking developments of 2024 and looks forward to what the next year may hold for blockchain technology.

Let’s dive into the milestones, trends, and predictions shaping the next era of cryptocurrencies.

This article is featured in the latest issue of Protocolour weekly newsletter that explores the technology behind cryptocurrencies, one block at a time. Register here Get it in your inbox every Wednesday.

1. A look back: Crypto technology highlights for 2024

Duncun upgrade for Ethereum: The year 2024 was marked by Ethereum The most important network upgrade yet. Ethereum has activated the Cancun-Deneb (Dencun) upgrade, a landmark improvement designed to enhance scalability and reduce data fees, marking a pivotal step in the network’s evolution. Duncon Proto-danksharding fta mechanism that aims to reduce the costs of Layer 2 aggregation operations by simplifying data availability and improving transaction throughput. Changes, though Discussed greatlyIt aims to benefit developers and pave the way for further innovations in the Ethereum roadmap, strengthening its position as the leading smart contract platform.

Solana Locks in Value: Solana’s DeFi TVL has reached $9 billion in total value locked (TVL) for the first time in three years, with its DeFi ecosystem seeing further growth. This achievement reflects increased user engagement and expansion of decentralized applications on the platform. This growth has been greatly aided by institutional adoption and key integrations. Financial giants love Franklin Templeton and Société Générale Leveraged Solana for token asset projects. Solana has also expanded his reach with Robinhood add SOL To its trading platform and Cboe Global Markets’ introduction of Solana-linked ETFsWhich indicates increased confidence in its infrastructure.

Warning bell for quantum computing: Google’s progress in quantum computing, particularly with its revolutionary quantum chip, It raised alarms within the crypto community About potential threats to blockchain security. The chip’s ability to solve problems far beyond the reach of classical computers is back Discussions about Bitcoin’s reliance on traditional cryptographic methods And the broader implications for the cryptocurrency ecosystem. Experts stressed the urgent need to move to quantum-resistant encryption to protect cryptocurrencies from future vulnerabilities. While current quantum computers are not yet capable of hacking blockchain networks, the progress made by Google has been confirmed The need for proactive measures To ensure the long-term security and resilience of digital assets.

High second layer adoption: Layer 2 adoption has soared as projects like Arbitrum, Optimism, and Base have played pivotal roles in addressing Ethereum’s scalability challenges. Arbitrum continued to dominate the Tier 2 ecosystem, Exceeded 1 billion in transactionsdriven by strong developer support and DeFi integrations. And the optimism persisted Expand its influence with its OP Stack technologywhich enables modular Layer 2 solutions and enhances ecosystem-wide collaboration by being integrated into Optimism’s Superchain. Base, the second layer incubated by Coinbase, gained significant traction because it leveraged Coinbase’s broad user base and pipeline, with Franklin Templeton becoming the first asset manager to do so. Launching a symbolic treasury fund On the network.

DeFi leaders innovate: Aave became the focus of attention A new fund launched by Grayscale Investments In October, providing institutional and accredited investors with exposure to its governance token (AAVE) through a traditional investment vehicle; Uniswap Labs Announce Unichaina decentralized layer-2 chain built using Optimism’s OP Stack, is designed to boost transaction speed, reduce costs, and improve cross-chain interoperability, with plans to launch the mainnet in 2025; And Makerdao It was rebranded as Sky As part of its Endgame plan, it introduces new governance (SKY) and stablecoins (USDS), independent “Sky Stars,” deflationary token economics, and a roadmap to fully transition from MKR to SKY tokens.

2. Emerging trends for 2025

• Artificial Intelligence x Blockchain: The integration of artificial intelligence and blockchain technology is set to revolutionize identity verification, predictive analytics, and smart contract automation – and hopefully Reducing the negative side effects of artificial intelligence.
• Regulated crypto centers: Jurisdictions such as Hong Kong, Dubai and Singapore are putting themselves in this situation Crypto-friendly innovation hubsattracting startups and institutional investors alike.
• Interoperability takes center stage: Cross-chain protocols You will dominate developmentenabling seamless asset transfers and collaboration between blockchain ecosystems.

3. Developer Spotlight: 2024 in Numbers

Electric Capital Developers Report: The report highlighted sustained growth in blockchain development with a 35% increase in active developers. Ethereum, Solana, Polkadot, Base, and Polygon led the pack, showcasing their strong developer communities. Solana was the biggest magnet for new developers, bringing in 7,625 new developers in 2024, surpassing Ethereum. Solana’s appeal, driven by its low fees, fast transactions, and… Many meme coinspositions it as a formidable competitor in the smart contract arena.

4. What to watch in 2025

• Ethereum Pectra Upgrade: Ethereum Next Pectra upgrade It has been divided into two phases, Bragg and Electra, to ensure a smoother rollout of major improvements to the consensus and execution layers. Electra stage It will enhance auditor efficiency, enhance network security, and provide improved mechanisms for managing auditor exits.
• Measurement solutions: ZK-rollups and standard blockchains will be used Driving the next wave of scalabilityWhich ensures smoother user experiences. Zero-knowledge proofs are emerging as a transformative technology, enabling enhanced privacy and efficiency while paving the way for a future where blockchain networks can scale seamlessly without compromising decentralization.
• Decentralized identity: rise Decentralized identity solutions It could redefine how users interact with Web3 platforms, focusing on privacy and ownership. These systems leverage blockchain technology to give users control over their personal data, allowing them to verify their identities without relying on central authorities.

5. Final thought

2024 has set the stage for the next chapter of cryptocurrencies, with breakthroughs in scalability, decentralized finance, and security that will shape the next transformative year.