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- 5 Amazing Blockchain Trends We'll See In 2022
- The rise of NFTs
- The Evolution of Real Estate
- Supply Chain Improvement
- Increasing Safety for the Environment
- Development of Defi
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5 Amazing Blockchain Trends We’ll See In 2022
Blockchain is the technology that underlies the infrastructure of cryptocurrencies. Thanks to this tool, Bitcoin and Ethereum raised the cryptocurrency market to the $2 trillion mark. However, 2022 has shown that technology can be easily transformed and implemented in many industries: medicine, real estate, marketplaces, etc.
A blockchain is an open and censorship-resistant database model protected by encryption and decentralization. The system writes data in blocks to a shared ledger, keeping a synchronized copy of it in all systems participating in the network, thereby ensuring its immutability. High security allows the experts to take the blockchain to the next level. We will be the first generation to see these exciting developments!
The rise of NFTs
NFT technology opens our list of blockchain trends. In 2021, NFT projects enjoyed great success and showed users the potential of independent tokens. In 2022, we expect the technology to grow as developers work hard to advance and improve it. Two factors testify to this.
The first aspect is the growing prominence of the Metaverse. The platform has challenged the way we perceive ownership of digital assets. The system promises new ways to share and enjoy virtual experiences. Metaverse can be a good container for NFTs – from space items to virtual souvenirs, digital passes, etc.
The second aspect is games. If we compare traditional games with NFT, it becomes clear that this foray was unsuccessful and criticized by gamers. The first attempts to introduce the technology were very hasty and caused a lot of negativity. However, the developers did not stop there: having understood the blockchain, they plan to produce something more than just a new type of collectible item.
The Evolution of Real Estate
The real estate industry has many pitfalls and uncertainties. Until now, people cannot be 100% sure that the execution of financial transactions can be safe and transparent. However, according to blockchain for real estate, the situation will soon change. Experts are working on blockchain apps, thanks to which, in 2022, they will accelerate the processes of paperwork and transactions several times.
With the help of blockchain technology, you can create digital identifiers for any real estate asset, called tokens. Users holding these tokens can control and track ownership, transaction transparency, and compliance with regulations.
In addition, the blockchain can automate various financial processes. For example, you can trust the system to pay taxes, collect rents and pay dividends. Moreover, the transfer of ownership can be carried out without meeting with the interested parties.
The cherry on the cake is cost savings. Blockchain can save you from using third parties to conduct transactions. You will not have to pay brokerage fees and bank interest as you will be selling real estate directly to the client via the blockchain.
Supply Chain Improvement
The supply chain is another sector part of the blockchain trends 2022. Increasing globalization has led to more complex distribution processes, thus creating new challenges in the supply chain. Blockchain technology can increase transparency and automation of supply on a global scale.
The distribution of the Covid-19 vaccine has created stricter supply requirements due to limited quantities and the need to keep it refrigerated. This has led two hospitals in the UK to start implementing blockchain technology. As a result of the experiments, scientists were able to develop temperature sensors that showed minimal deviations from temperature and removed low-quality vaccines from the supply chain.
Another prime example of successful blockchain implementation is IBM. IBM has revolutionized healthcare by making data delivery faster and more transparent. The company uses blockchain technology to provide verifiable data on the Covid-19 vaccine. It is expected that in 2022 this technology will be adopted by the legal, academic, and business industries.
Increasing Safety for the Environment
Blockchains, like other technologies, have their drawbacks. Most of all, experts criticized the impact of popular blockchains on the environment. Blockchain protocols require a lot of energy to operate.
To understand the scale of environmental damage, consider the well-known mining. The production of bitcoins in a year requires as much electricity as an entire state consumes – for example, Denmark or Italy. For clarity, imagine how much electricity is required to watch a YouTube video for 51,000 hours. Did you submit it? This is the energy it takes to withdraw bitcoin from a BTC wallet.
The developers took into account the negative reviews and delved into the problems that damage the environment. In 2022, more environmentally friendly algorithms will be released, such as Proof of Stake.
Development of Defi
Today, decentralized finance is at the forefront of the crypto industry. Despite this, DeFi has a number of structural disadvantages: high commissions, security problems, instability of liquidity and income, problems connecting various resources, and an underdeveloped management system.
Most Defi protocols attract investors by offering them incentives through project native tokens. The “liquidity mining” mechanism works well in the short term, but the accelerated issuance of the token, which pays rewards to liquidity providers, puts pressure on its price. Sooner or later, the yield is reduced, creating the risk of a massive exodus of capital and migration to another protocol.
In 2022, the developers plan to release an improved version – Defi 2.0. In this version, developers will try to solve problems by forming a protocol reserve fund used to earn money in popular Defi applications. Alos, in addition, with the help of treasuries, Defi 2.0 projects will provide liquidity as a service (LaaS) to other Defi services. The result should be the creation of a permanent income that allows you to refuse too high a return by issuing a governance token.
Blockchain is a technology without borders. In 2022 we will see bright trends in the blockchain: the development of NFT and Defi, an improved supply chain, the evolution of real estate processes, and finally, protocols that will reduce the level of harm to the environment. These historical twists and turns can change the legal, medical, educational, and business industries. If you want to learn more about this topic, we recommend visiting Blockchain News and CoinDesk, which publish the latest news from the blockchain world.
Thank you for reading!