Blockchain is among the most intriguing technological trends at present. Blockchain is a distributed, encrypted database model which has the potential to solve a variety of issues related to security and trust online.
Most people are familiar with this system that powers Bitcoin and all cryptocurrencies. However, its possibilities extend far beyond that, covering the use of digital ” smart” contracts and logistics and supply chain’s provenance, security, and protection against fraud on your identity.
There are many other possibilities blockchain advocates say they could use to increase security and ensure the integrity of any system with multiple parties sharing access to databases.
Existing Position of Blockchain
The most effective way to begin to think about the future of blockchain in 2022 is to look at an outline of stats predicted for the blockchain industry.
- Under the Worldwide Semiannual Blockchain Spending Guide published by the International Data Corporation in 2019, The annual global spending for blockchain-related solutions will reach close to $11.7 billion by 2022.
- Enterprises are exploring new scenarios for blockchain using applications across various industries, such as health care, gaming, and the management of identities.
- With more than 70 million blockchain wallets in use today, It is possible to make positive blockchain-related predictions for the coming years.
- But most importantly, the market for blockchain in the world is expected to grow at a rate of over 69% over the time frame between 2025 and 2019.
Top Blockchain Trends to See in 2022
The enormous achievement that NFT projects had in 2021 provided us with an insight into the huge potential of tokens that are not fungible. In 2022, we expect NFTs will only continue to expand as developers continue to push technology to the next level.
While art-centric projects are not going anywhere, 2022 is expected to focus more on utility. This will enhance the popularity of NFTs.
Two catalysts are pointing to an eventual shift to utility. The first is the rising importance of The Metaverse, which is already challenging our perception of the ownership of digital assets and is expected to provide new ways to share and experience virtual experiences. The expanding Metaverse will allow for an array of NFTs ranging from cosmetics and memorabilia to digital property, virtual passes, and others.
Another aspect to take into consideration is gaming. To date, the NFTs’ attempt to enter traditional gaming has received an outrage from gamers that’s not unexpected considering how unorganized the initial attempts to incorporate the technology were.
To allow NFTs to be successful in gaming, the technology must create something more than an entirely new kind of collectible.
Continued DeFi evolution
The DeFi industry continued to grow in 2021, with the major players taking their game to the next level by enhancing their technology and using scaling techniques to boost efficiency.
The second half of the year witnessed the beginning of the “DeFi 2.0 narrative fueled by the growing popularity of the new products, including Olympus DAO, Rari, and Tokamak.
Although there is some debate over how the defi 2.0 name is a good idea, it is, nonetheless, an indication of the constant growth of the DeFi industry and the technology behind decentralized financial services.
The trend in 2022 will likely continue as technology advancements allow developers to develop new products and more efficient liquidity models. It is also possible to witness the first major efforts to move the industry beyond its self-contained bubble to connect it to the wider economy.
We’re also likely to see an increase in the use of DeFi products on other chains than Ethereum. Its success with Pancakeswap on the Binance Smart Chain last year proved that, while Ethereum is undisputed the market leader, it’s not the only game on the block.
Ethereum Scaling and Layer 2
The efforts to expand Ethereum will continue until 2022. In the last year, we witnessed substantial progress in this regard, with Polygon becoming popular with a vengeance and the roll-up technique moving forward in a big way.
The quest to increase the size of Ethereum by using Layer 2 technologies such as roll-ups is expected to remain one of the top blockchain trends soon.
Interoperability and multichain
As we’ve mentioned, the dominance of Ethereum has not been unchallenged. The competition from new and promising Layer 1 protocols such as Solana, BSC, and Avalanche is expected to grow soon.
It is expected that more dApps opt for the multichain a. A few of the most popular dApps, like the giant of DeFi Aave, have already made the switch to multichain. Another LimeChain client, MatraDAO, has also advocated the multichain model.
A greater concentration on multichain support will facilitate the development of interoperability solutions like blockchain bridges.
Blockchains that are eco-friendly
One of the main critiques of blockchain technology is the environmental impact of blockchain technology due to the massive use of energy that many of the most well-known blockchain protocols need.
Particularly, protocols rely heavily on Proof of Work, as this algorithm requires validators to do an enormous amount of computational work by design.
By blockchain trends 2022, you’ll see a greater effort to address this issue, particularly through eco-friendly algorithmic systems like Proof of Stake.
For example, Ethereum’s decision to adopt PoS is largely motivated by the desire to enhance the eco-friendly aspects of the platform. Sustainable.
What are the major issues Blockchains face today?
The biggest issue associated with blockchain is the inadequacy of knowledge about the technology, particularly in other areas than banking. There is also an overall ignorance of the way it functions. This hurts investment as well as the exploration of new ideas.
What happens when blockchain becomes too large?
When the Bitcoin blockchain grows too large, the bottleneck of transactions can have a huge impact on UTXO RAM requirements and memory. To put it in the context of a single transaction, more than 2 000 transactions per second could need more than 25 TB every year.
What are the problems blockchain can solve?
- Peer-to-peer (P2P) transactions can remove intermediaries.
- Verify and record all transactions using the blockchain network. This will minimize the risk of managing funds and credit.
- Fast settlement of transactions with smart contracts.
Blockchain is among the top modern digital technologies of our time. It provides better safety, security, and transparency, as well as the immutability of data, as well as accessibility as compared to conventional networks.
Although blockchain has been instrumental in driving numerous changes across various industries, however, it is still in its development.
So, a keen eye on trends in the blockchain industry is vital to understanding the complexities of the blockchain world. Blockchain’s attributes prove its potential for being a future-oriented technological intervention. However, the blockchain trends in 2022 show how it changes each year.
The major trends that are likely to have an impact in 2022 on blockchain technology include the shift towards green blockchain networks. Furthermore, the increasing uses of NFTs are likely to be the main features of 2022. In addition, introducing cryptocurrency as a legal currency will be a major event for the blockchain ecosystem in 2022.