Smart contracts continue to rise amid market downturn: BNB Chain Q2 report

BNB Chain noted that the rise in verified smart contracts highlights the demand for security, reliability and scalability.

Although some consider the second quarter of 2023 a lost quarter, others find that the smart contracts industry remains resilient. Even though the crypto space suffered from lower investments from venture capital firms, developers continue to deploy smart contracts, signaling a growing demand for blockchain-based solutions. 

In its Q2 report for 2023, blockchain platform BNB Chain noted an increase in verified smart contracts. According to the report, platforms like BNB Chain, Ethereum, Polygon, Fantom, Avalanche, Arbitrum and Optimism all recorded a percentage increase in verified smart contracts in Q2.

BNB Chain said that the rise in verified smart contracts across multiple blockchains highlights the “increasing importance placed on security, reliability, and scalability within the blockchain ecosystem.” The firm also wrote that this underscores the industry’s resilience despite bear market conditions.

Based on the data it collected for the second quarter, the company predicts some potential trends that may continue throughout the year. According to BNB Chain, there may be continuous momentum in layer-2 solution adoption because of their scalability and cost-effectiveness. The report also predicts a focus on smart contract security, with crypto platforms investing more in advanced cryptography and audits.

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Meanwhile, regulatory scrutiny is expected to rise along with developments within the space. According to the report, compliance will be key for developers and organizations. The report recommended that companies stay updated with regulatory changes and ensure compliance.

As crypto market prices remained low, venture capital funding also recorded one of its worst quarters. On July 6, data showed that Q2 of 2023 recorded one of the weakest quarters in terms of crypto fundraising. Despite this, executives working in the crypto industry have largely remained optimistic about the crypto space’s long-term prospects.

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