Predictions for the blockchain industry in 2022

In recent weeks, cryptocurrencies have been on a rollercoaster ride: the rise of Decentralized Autonomous Organization (DAO), the rise of decentralized finance (DeFi) against traditional financial services business models, and the valuations of some NFT assets that seem to defy logic. So what does 2022 hold for the blockchain industry?

While we can’t predict the future exactly, we can make educated guesses about the many developments that will shape this space for years to come.

The predictions in this article are based on past industry trends, customer questions, and extensive research into this emerging technology ecosystem. This article explores the trends that will shape the blockchain industry in the coming year.

  1. Governments will embrace blockchain technology

Blockchain technology can enable governments to conduct their business more efficiently. As they recognize blockchain technology’s potential for efficiency and public trust, governments will take advantage of its many possibilities.

In recent years, some governments have experimented with blockchain technology in a variety of activities and services, including land registry, accreditation for education, healthcare, procurement, food supply chains, and identity management.

For example, Australia Post has announced plans to use blockchain technology for local votes, Estonia is using it to strengthen the integrity of its tax and business registration systems as well as medical records. electronics, and the UK is exploring this technology to track the distribution of social benefits.

As the adoption of blockchain by governments increases, many governments are trying to solve the problem of trust. As a result, the World Bank has proposed a three-tier design and implementation framework to avoid any issues between technology and intended use. These same guidelines for blockchain adoption can also be used by businesses.

  1. A greener blockchain could help save the planet

Blockchains are often criticized for the enormous energy requirements needed to maintain their security. That’s why Elon Musk cited changes in his view on bitcoin auto payments in January 2021. We’re likely to see a lot of effort to make blockchain technology greener and offset its carbon footprint throughout the world. year 2022. This could be done in several ways:

Carbon offsetting is one approach. For example, crypto-tokens that are solely intended to acquire clean energy could give organizations the ability to demonstrate that their business operations are climate-neutral compliant.

Another approach is to use less power-consuming blockchain technology, which typically uses proof-of-stake algorithms rather than proof-of-work. When cryptocurrencies go green, blockchain technology can help address climate change.

  1. More countries will adopt cryptocurrencies as legal tender

El Salvador was the first nation to adopt bitcoin in 2021 as legal tender; several nations are expected to follow in 2022.

Developing countries are more likely to embrace cryptocurrencies in the near future, due to global inflation and rising remittance fees borne by intermediary financial institutions that facilitate money transfers foreign workers.

Another area where we will see significant development in 2022 is central bank-controlled cryptocurrencies rather than embracing popular decentralized currencies. Many of these initiatives envision a digital currency that would work in tandem with the country’s fiat currency.

  1. The NFT market will continue to grow, but with a caveat

The NFT market is expected to continue to grow as more and more things move from physical to digital. The NFT market offers users the opportunity to assert their ownership rights over a digital asset.

I think the NFT 2.0 model will be less about art and more about utility, gaming, social sharing, and access to hyper-exclusive communities. The metaverse concept alone will provide a wealth of new use cases for inventive NFT applications.

The risks and challenges facing the non-fungible token market will require regulatory intervention, which will be critical for the future of NFTs.

  1. Blockchain will be the most in-demand skill

The year 2022 will see a greater demand for blockchain and crypto skills.

The growing popularity of cryptocurrencies, the growing importance of blockchain in various industries, and the potential for growth in the blockchain industry are all contributing factors to a higher demand for blockchain and crypto skills.

Blockchain is now at a point where large corporations and governments, not just a tiny hyper-technical community of IT experts, are beginning to understand its potential for improving people’s lives and building organizations. more resilient. Therefore, businesses need blockchain experts who can help them apply blockchain technology to achieve their business goals.

An overview

The technology landscape is constantly changing, and we don’t know exactly what will happen in 2022 or beyond. One thing is certain though, the future is blockchain. This is probably the technology that will revolutionize the way we do things for decades to come. So it’s time we started thinking about incorporating it into business models.

Article translated from Forbes US – Author: Sani Abdul-Jabbar (Chairman of the Board of Directors of VezTek, a Los Angeles-based provider that provides start-up support and on-demand technology talent for scale-ups and enterprise IT teams.)

<<< Also read: Art Can Die: the power of new blockchain, NFT and DAO technologies at the service of art >>>

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