Blockchain can currently be among the top anticipated technologies with an exciting future for various usage scenarios. It is essentially an encrypted, distributed, and distributed database variant that can address various issues related to security online and trust.
Although many are familiar with blockchain about cryptocurrencies such as Bitcoin, it also has different applications to manage supply chains. Protection against identity theft and logistics, as well as in developing smart electronic contracts.
So, many tech enthusiasts are interested in identifying the most prominent blockchain trends of the coming year to determine how blockchain technology will evolve further.
What will be the next applications for blockchain? Do we expect to see a major impact on blockchains in 2022 due to technological advancement?
How Is the Blockchain Technology Market Growing?
Blockchain solutions are a huge part of the global economy. Has reached $6.6 billion in 2021. Blockchain technology is awaiting further investments in the many billions of dollars. The blockchain market is expected to show an average annual growth of 56 percent between 2022 and 2029.
Another positive development is the fact that European Union is planning a multibillion-dollar investment in technological advancement, with blockchain as a component.
Businesses from various industries engage in blockchain technology, with the financial services, banking, and insurance industries being the leaders. The entertainment business, as well as healthcare, are also two sectors of technology interest.
Because blockchain technology is most popular within the financial services industry (FSI), we suggest we look at the most popular uses.
A majority of financial institutions employ the blockchain platform as a base for the launch of digital currencies. Still, it is also used for secure data exchange and digital identity.
Existing Position of Blockchain
The most effective way to begin to think about the future of blockchain in 2022 is to review an outline of the stats expected for the blockchain industry.
Based on the Worldwide Semiannual Blockchain Spending Guide published by the International Data Corporation in 2019, The annual global spending on blockchain technology will be close to $11.7 billion by 2022.
Enterprises are looking for new uses instances of blockchain, with applications in various sectors, including the healthcare sector, gaming, and the management of identities.
With more than 70 million blockchain wallets in use today, it’s plausible to anticipate many more positive future blockchain-related predictions in the coming years.
But most importantly, the global blockchain market will grow at a rate greater than 69% over the period between 2019 through 2025.
As one of the most technologies that will disrupt the world and be a major disruptor in the year 2021, blockchain tech is set to enter 2022 with lots of excitement. What is the outlook for the blockchain industry? Perform in 2022? Let’s find out!
Top Blockchain Trends to See in 2022
1: Central Bank Digital Currencies (CBDC)
Blockchain technology is revolutionizing how traditional banks operate. One of the newest developments in the field of blockchain technology is the use of digital currency by central banks from diverse nations. This suggests banks are likely to create digital currencies similar to fiat currency.
According to recent figures and the latest statistics, the governments of 87 countries have already expressed an interest in CBDC.
These factors drive this enthusiasm: digital currency is cheaper than cash. CBDCs have lower transaction costs, and digital currencies can encourage financial inclusion.
2: Eco-friendly Blockchain
One of the biggest obstacles to a promising blockchain future is the need for massive amounts of energy. Because of this, blockchain technology can also bring the dangers of constantly increasing emission levels.
Tesla President, Elon Musk, announced that the company would never accept Bitcoin as a payment method for Tesla cars by 2021. Thus, the blockchain’s future in 2022 will concentrate primarily on introducing a more sustainable blockchain.
Innovative approaches to blockchain, like carbon offset, are developing as solutions to these issues. However, carbon offsetting serves more as a rehabilitative procedure for an event that shouldn’t have occurred in the first place.
A different approach to introducing an eco-friendly blockchain within blockchain-related trends in the coming year is to focus on less energy-intensive blockchain models.
For instance, blockchain networks may transition from proof of work models to proof of stake models to achieve consensus. One of the largest blockchains, Ethereum, is likely to adopt a Proof-of-stake consensus model by 2022.
There is also an instance of the trend toward environmentally friendly blockchain networks, such as the hedge fund with a tech focus Ark Invest.
The more sustainable operating models of blockchains, such as Ark Invest, could drive blockchain expansion in the future. How? The models suggest that the growing energy demand could increase investment in renewable energy generation to run blockchain operations.
3: Blockchain-as-a-Service (BaaS)
BaaS is among the most prominent blockchain technology trends of 2022. Companies such as Microsoft as well as Amazon have already adopted BaaS in the past.
Blockchain-as-a-service will act as a cloud service where users can create digital products using blockchain fundamentals.
Hyperledger Cello is one of the BaaS projects. The platform comprises applications and tools that allow for the development of digital products based on blockchain.
4: Blockchain in Real Estate
Blockchain-related trends in real estate cover a range of applications, ranging from investor and tenant identification to property and asset management.
By utilizing this technology, firms can improve data accessibility and make sure that they are transparent, increasing the efficiency of processes through automation.
Forbes states it is the reason for the future of real property transactions. Mainly, this pertains to the automated processing of transactions and smart contracts in real estate. Please find out more about the real estate blockchain and its use in our blog post.
5: Blockchain in FinTech
The financial sector is one of the most affected by blockchain technologies. The most recent developments include the creation of tokens for assets and the introduction of digital currency. However, other prominent applications are data security and using smart contracts.
Blockchain is a great chance to change how we think about the financial system. Transactions will be free of intermediaries because of peer-to-peer networks.
The speed of transactions will improve substantially, and blockchain will guarantee the security of financial transactions.
6: Blockchain in Healthcare
Security of data is essential in the field of healthcare. That that’s why the blockchain is so in demand in this area. But the security of medical records isn’t the only trend on blockchain in healthcare.
Blockchain technology can also help establish supply chains for pharmaceuticals.
Blockchain technology will probably help in confirming the qualifications of medical professionals.
This practice isn’t yet widespread; however, the U.S. firm ProCredEx may have already launched an application based on R3 Corda. R3 Corda blockchain protocol.
Blockchain is, without a doubt, among our time’s leading sophisticated digital technologies. It improves security and transparency, as well as the ability to change data and accessibility compared to traditional networks.
Although blockchain has been instrumental in generating many positive changes across different industries, however, it is still in its development.
Thus, keeping a close eye on the latest developments in the blockchain is crucial to getting through the intricate details of the blockchain world.
The characteristics of blockchain show its capability as a futuristic technological innovation. In the same way, the developments in blockchain in 2022 show how it changes every year.
The major trends that are likely to have an impact in 2022 on blockchain technology include the shift towards green blockchain networks. Additionally, the growing applications of NFTs are likely to be the main events of 2022.