Next Phase of Blockchain Software Development Has Started: Bank of America

Bank of America Suggests a new wave Next wave of Blockchain Software Development

According to bank research, platforms like Near, Polkadot, and Cardano are utilizing novel techniques to enhance the trade-off between scalability, decentralization, and security. As per the Bank of America, this next phase of Blockchain Software Development Started.

The Near protocol is part of a new generation of blockchains such as Cardano, Solana, and Polkadot that are employing creative techniques to improve the "trade-off between scalability, decentralization, and security," Bank of America said in a research note Tuesday.

The report stated that shortly, developers are likely to become interested in blockchains like Near that improve their usefulness and encourage development. "Common scaling issues related to increasing centralization due to pooling and decreasing security due to poorly aligned incentives" are mitigated by Near's sharding technique.

Identifying long-term winners and losers, however, would be premature, the paper claims. In the long run, analysts Alkesh Shah and Andrew Moss predicted that "we expect blockchains that prioritize usability and effectively market themselves to gain market share by attracting a robust and diverse ecosystem of applications that drives adoption, network effects, and cash flows."

While other blockchains concentrate on maximizing "throughput," or speed, Bank of America claimed that while Near does prioritize network usability, it still needs to do more. Despite its emphasis on usability, innovative architecture, and an ecosystem of more than a thousand applications, near development slowed down in 2022 compared to the previous year, the bank noted.

Transactions fees have fallen since the first quarter of last year, and the rate of new users has dropped since the second quarter, which suggests that its "applications are no longer driving accelerating user growth," Bank of America said.