Blockchain is currently used in more than just cryptocurrencies, even though this is how most people think about it. This innovation is being actively embraced by several blockchain development companies, including eCommerce, healthcare, supply chains, transportation, and finance are a few examples where this technology has been already used. For instance, e-commerce, logistics, supply chain management, smart contracts, the production and exchange of vaccinations, and more. As a result, many tech enthusiasts speculate about the newest advances in blockchain technology in the future to gain a sense of how the trend might change the industry.
While the continued warming of institutional investors toward both bitcoin and altcoins contributed to a degree to the quadrupling of the total market capitalization of cryptocurrencies (which briefly reached $3 trillion in November 2021), the broader increases in adoption have continued to be driven by other key drivers. Particularly, the expansion of NFT use cases and the rise of the metaverse—both of which have demonstrated a natural match for blockchain technology and, consequently, increased the acceptance of cryptocurrencies—became prominent phenomena.
This article examines the biggest blockchain trends to watch in 2022 and beyond, ranging from obscure derivatives trading platforms to NFT markets like OpenSea.
What is Blockchain Technology?
Blockchain technology is a decentralized ledger that can be used in many ways to record transactions of all types, including financial security. As the “most disruptive technology in history,” it has been termed.
The blockchain is not a single technology but a combination of different software and hardware technologies that create an open, secure, digital ledger of transactions. Each block on the log contains a hash pointer linked to its previous block, creating a chain of blocks that cannot be changed without redoing the whole blockchain.
The blockchain’s distributed nature allows it to be used in many other fields besides money transfer. The term “blockchain” is used interchangeably with “distributed ledger” because they both refer to the same underlying technology: a shared digital database that keeps track of records or events over time using cryptography.
Blockchain technology is powerful because it eliminates intermediaries and makes transactions transparent without relying on trusted parties such as banks or governments to verify them. This transparency includes who transferred funds from one place to another, when they transferred them and how much they are worth at current exchange rates.
10 Top block-chain trends in 2022
Bitcoin and FinTech
The industry most affected by blockchain technology is the financial one. The tokenization of assets and the introduction of digital currency are contemporary phenomena. The usage of smart contracts and data security are two more common uses.
Blockchain has a great opportunity to transform the current financial system. Due to peer-to-peer networks, transactions won’t need any middlemen, transfers will go much faster, and the blockchain will guarantee the transparency of financial transactions.
Assignment of Capital
Throughout 2021, the index measuring bitcoin dominance decreased. The first cryptocurrency updated its record high during this time, reaching $68,789 in mid-November. The index measuring bitcoin supremacy, nevertheless, kept declining. This implies that some capital started to move toward alternative currencies.
Investors pay more attention to alternative coins when the price of bitcoins stays constant for an extended period (the exchange rate varies within predetermined limitations). Despite having far higher volatility, new technologies have allowed them to maintain their development potential.
The market leadership of bitcoin will continue to wane in 2022. The development is relatively gradual, which is the main issue.
One of the top developments in blockchain technology for 2022 is BaaS. Amazon and Microsoft, for example, have already used it. When used as a cloud service, blockchain-as-a-service will let customers build digital products based on the principles of the technology.
One such BaaS project is Hyperledger Cello. It is a platform made up of tools and programs that make it easier to build blockchain-based digital products.
Investment by Institutions
While some contend that stocks, bonds, and other financial assets under the centralized control of governments and financial intermediaries are opposed to the original intent of blockchain-based cryptocurrencies, others believe that participatory vehicles for institutional investors are crucial for long-term stability and viability of the market.
Perhaps the most representative event of this rising thirst for institutional participation in the cryptocurrency markets was the approval of the first bitcoin ETF on October 19.
Growth of NFTs
One of the defining themes of 2021 was the quick acceptance of NFT by singers, clubs, professional athletes, and other organizations. This trend is now crucial to the uptake of cryptocurrencies. In contrast to bitcoin and other crypto assets’ like-for-like interchangeability, or fungibility, NFTs are one-of-a-kind digital tokens that may be used to confirm the authenticity and represent digital ownership of almost any work of art, document, or object.
Health Care using Blockchain
In the healthcare industry, data privacy is vital. Blockchain technology is therefore highly sought after in this country. But there are other blockchain trends in healthcare besides the security of medical records. The development of medication supply chains is assisted by this technology.
The blockchain may potentially be used to confirm the educational qualifications of medical professionals. Although this approach hasn’t yet gained much popularity, the American business ProCredEx has already introduced a service based on the R3 Corda blockchain protocol.
Real estate and blockchain
Applications for blockchain technology in real estate range from tenant and investor identification to asset and property management. With this invention, businesses may make data more accessible and transparent while also increasing the productivity of labor processes through automation.
According to Forbes, blockchain technology will lead to future advancements in real estate transactions. This is relevant, in particular, to the application of real estate smart contracts and transaction automation.
Using a lot of electricity is one of the biggest obstacles to a successful blockchain future. As a result, the hazards of continuously rising carbon emissions come along with blockchain innovation.
Tesla’s CEO, Elon Musk, announced that starting in 2021, the business would stop accepting Bitcoin as payment for Tesla vehicles. As a result, creating a greener blockchain will be a major focus of 2022’s blockchain developments.
Focusing on less energy-intensive blockchain network topologies is another possible strategy for developing a green blockchain among this year’s blockchain innovations.
For instance, to reach consensus, blockchain networks may switch from Proof-of-Work to Proof-of-Stake models. In 2022, it is anticipated that Ethereum, one of the biggest blockchain networks, would convert to a Proof-of-Stake consensus design.
The environmentally conscious blockchain network movement is also demonstrated by the tech-focused hedge fund Ark Invest.
Future blockchain growth could be fueled by blockchains with greener operational models. How? The models predict that as energy consumption rises, investments in the production of renewable energy for blockchain operations may rise as well.
Metaverse should develop into a virtual environment that offers its users extraordinary online experiences. Of course, blockchain technology is essential for this world to function. Therefore, blockchain technology will continue to be useful the more well-known the metaverse becomes.
These stages of evolution are combined and synthesized in the metaverse. However, these traits have also demonstrated a natural symbiotic relationship with what is probably the largest economic sector in the world.
Even though the gaming industry is already worth more than $180 billion and is expected to reach $200 to $300 billion by 2025, the games and play-to-earn features that represent a significant departure from traditional AAA (triple-A) games are what make the metaverse sector so important.
DAOs (Decentralized Autonomous Organizations)
The DAO adheres to the fundamental tenet of bitcoin, which was to decentralize power in a payment system by distributing it among its users through a cryptographic consensus mechanism.
DAOs were developed in 2013 by Vitalik Buterin, a co-founder of Ethereum.
They are hierarchical organizations with predetermined architecture and regulations that are automatically enforced on blockchain-based digital currencies and approved by involved stakeholders (i.e., the token holders). It fosters direct digital democracy by increasing transparency and understanding of decision-making.
These crypto field forms of unions had a bumpy beginning for a variety of reasons, but they have come a long way since their first cruise, the disastrous “The DAO” launched by Slock in 2016. DAO budget war chests showed strong progress in 2021.
They already have a value in the billions. They are not just encroaching on every nook and cranny of the world of digital assets, but they are also coming to be seen as legitimate enterprises with operating cash flows and assets.
For instance, it’s essential to keep an eye on the top five Defi DAOs (Uniswap, Lido, Radicle, Compound, and Olympus DAO), which collectively control roughly $45 worth of assets.
As you can see, the blockchain sector is developing rapidly. Long before cryptocurrency, it was used for other purposes. The healthcare, FinTech, eCommerce, supply chain, and real estate industries can all benefit from this technology.
Businesses like how the blockchain guarantees data reliability, offers irrefutable protection, and can improve internal procedures. The expansion of green initiatives, the rise of NFTs, the creation of the metaverse, the rise of BaaS, and other developments are some of the main trends in blockchain technology.