Top 5 Blockchain Trends in 2022

Blockchain is one of the most exciting tech trends at the moment. It is a distributed, encrypted database model that has the potential to solve many problems around online trust and security. Many people know it as the technology that underpins Bitcoin and cryptocurrencies in general. However, its potential uses are far broader, encompassing digital “smart” contracts, logistics and supply chain provenance and security, and protection against identity theft.

Environment-Friendly Blockchains

One of the most key problems levelled at blockchain technology has been its environmental impact, which results from the high energy consumption required by some of today’s most popular blockchain protocols. Protocols that operate on Proof of Work, in particular, because this consensus process needs validators to perform a significant amount of computing work by design.

In 2022, we’re expected to see higher attention on addressing that issue, particularly through the introduction of more environmentally friendly algorithms like Proof of Stake. For example, Ethereum’s decision to use PoS is motivated in part by a desire to make the network more ecologically friendly.

NFT

Non-fungible tokens were one of the most significant additions to the blockchain ecosystem in 2021. In February 2021, one NFT sold for $69 million, and the world hasn’t stopped talking about them since. For obvious reasons, non-fungible tokens are one of the key highlights in responses to the question “what is the future of blockchain?” The concept of unique digital tokens on blockchains was presented to the world through NFT paintings, which sold for exorbitant sums in auctions.

Surprisingly, the concept of NFTs has recently discovered some potential applications in the field of music. Many well-known artists, including Grimes, Kings of Leon, and Shawn Mendes, have released NFTs of their songs. However, the promise of NFTs, same as blockchain, extends far beyond the initial use cases that grab attention.

Another potential use case for NFTs that has been highlighted in blockchain predictions for 2022 is NFTs in gaming. The use of NFTs in gaming has been clearly demonstrated in popular play-to-earn games such as Axie Infinity. The NFT games enable users to ‘mine’ their own NFT animals, known as Axies, and enter them into competitions. Axie Infinity has about 300,000 active players, demonstrating that NFTs can be more than just digital art.

The adoption of NFT in fashion would be one of the key highlights in blockchain future applications and use cases. NFTs have been used in the creation of footwear and clothes by well-known brands such as Nike and Dolce & Gabbana. Moreover, one can anticipate a significant increase in new and inventive NFT use cases in the metaverse.

GameFi

Consider playing your favourite game while making money. GameFi is the combination of DeFi with the gaming industry or the combination of profitable financial decisions and enjoyment and innovation. Blockchain technology has advanced in recent years, giving birth to plenty of new blockchain games. Here are a few examples:

• Axie Infinity (market capitalization – 10 billion $) is an Ethereum-based game in which users gather, breed, and trade imaginary creatures known as Axies, similar to Pokemon, in order to earn tokens. Because of its “play to earn” function, it is mostly popular among gamers in the Philippines and Venezuela.
• Players earn SKILL tokens in the CryptoBlades game based on Binance Smart Chain by killing foes, raiding with friends, and staking gains.

Most existing games are fairly simple and revolve around the incorporation of NFTs into games in the form of products or characters that can be traded in the game. There is a lot more potential in this area, and we can expect many popular gaming corporations to enter the market of other more real-world brands and start selling their products like clothes or food as NFTs in games as a next step.

The Metaverse

If 2021 saw an increase in metaverse conversations, blockchain advances in 2022 would strengthen the metaverse itself. For many years, the possibilities associated with virtual worlds were only seen in science fiction novels. The concept of the metaverse, on the other hand, has become an actual reality, with numerous popular platforms boasting large user numbers. The metaverse is essentially a shared virtual world with immersive experiences. Participants can use their digital avatars to interact with the metaverse. The avatars might assist in interacting with one another, as well as in creating in-world experiences, objects, and landscapes.

Notable names in technology industries, such as Facebook, Microsoft, Epic Games, and many others, are actively interested in the metaverse. Decentralization is an important feature of the metaverse’s design since it allows for transparency and smooth access to the metaverse. Aside from decentralization, metaverse relies on blockchain technologies to ensure user governance privileges as well as verifiable provenance. The usage of blockchain technology, most importantly, connects the metaverse economies to the wider crypto economy.

Experts believe that the metaverse is still a long way from becoming a fully working digital mirror of our physical world. However, there are numerous interesting applications in the metaverse that are currently gaining traction. In 2022, big tech corporations’ anticipated technological backing for the metaverse would dominate blockchain projections. Adoption of metaverse games like The Sandbox, as well as freshly growing blockchain initiatives in the metaverse, would emphasize 2022. Furthermore, one might hunt for metaverse games that provide distinct benefits such as social and investment chances.

DAO – Decentralized Autonomous Organization

While many believe DeFi will be the solution for the existing financial system and NFTs – the next digitalized generation of art, so-called DAOs (decentralized autonomous organizations) are increasing in popularity and may also be the successors to centralized enterprises or hierarchies.

DAOs are organizations where participants make investments and administer projects collaboratively in a decentralized manner, based on blockchain and smart contracts. This indicates that these groups lack defined structures, such as enterprises, and are not controlled by anyone. Instead, the governance is hard to change because it is embedded into the smart contracts. No one has to wait until a sufficient number of members vote on a choice. Everything is open to the public and transparent. In the future, the DAO tokens may even replace the companies’ shares, but they must first solve some legislative difficulties.

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DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.

VinceH

Coincu Ventures