Blockchain development is a fascinating tech trend of 2022, and it would be interesting to witness how it transcends its current boundaries. The adoption of blockchain technology has been limited because of the complexity in understanding how it works. Still, there’s no denying the fact that this encrypted database model has the potential to solve several problems relating to online trust and security.
Due to its unconventional data storage methods, blockchain trends are expected to act as a reliable source of record-keeping in the future, as well as for financial transactions between sectors. Blockchain development technology is anticipated to provide scalability and interoperability to facilitate enterprise-level distribution.
Here are some blockchain trends to look out for in 2022.
Reduce Blockchain Carbon Footprint
In recent years, blockchains have proved to use a large amount of energy while creating unacceptably high levels of carbon emissions. We will likely see many companies paying greater stress on ‘greenifying’ blockchain. One of the ways to reduce the amount of carbon emissions is through carbon offsetting. However, many argue that this method isn’t as effective as eliminating the cause of emissions.
Another way of achieving this is through seeking “proof-of-stake” instead of “proof-of-work.” This could significantly reduce the excessive amount of energy required to generate consensus. The second best-known blockchain, Ethereum, is expected to switch to a POS model in 2022.
Social Media and Blockchain
It comes as no surprise that mainstream social media would work alongside blockchain technology to realize two major trends of identity verification and marketplace verification. We all know that a common problem that social platforms face is bots.
This is both a political and a marketing issue. Marketing agencies waste their resources on empty profiles, which further intensifies the need for authentic identity verification and smart contracts.
Additionally, marketplace verification is another hot blockchain trend of 2022 that will significantly increase a company’s potential for growth. By targeting verified vendors, marketing will become simpler and more effective. Another important aspect of blockchain technology is its ability to verify published data.
Internet of Things (IoT)
Blockchain can be a future enabler of IoT scalability, efficiency, and standardization by adding an added layer of security and accountability. It is expected to act as a facilitator of IoT applications like supply chain trace. In healthcare, blockchain-enabled IoT devices will let users control access to the data that is collected through these devices.
Blockchain technology will make devices more secure and resistant to cyberattacks and also provide a record of when an unknown party accessed the data. Additionally, smart contracts can automate payments against set parameters using blockchain-based systems in the supply chain.
Governance Will Use Blockchain
One of the significant blockchain trends to look out for in 2022 is practical government use. With the startling speed at which cryptocurrency has saturated markets and continues to grow, governments must prepare for the inevitable.
Government agencies have to maintain separate databases for their currency, making it challenging to gain information about others. In addition, they must comply with regulations which can make compliance difficult for global entities to achieve. For these reasons, virtual currency could greatly benefit governments.
Blockchain technology can also increase the functionality of how the government manages its data, making it easier to manage significant amounts of data.
The Scope of NFTs
Throughout 2021, Non-Fungible Tokens (NFTs) were the biggest trend in blockchain. Users were able to sell their artwork for substantial amounts making headlines and defining the scope of digital tokens in blockchain. NFTs weren’t limited to artwork but also expanded into the world of music, with artists like Shawn Mendez, Kings of Leon, and Grimes releasing their tracks in NFT format.
The scope for NFTs in 2022 is unlimited, especially in the gaming industry. Leading players like Axie Infinity allow players to “mint” their NFTs creatures to use in battle, and they currently have 300,000 concurrent players. Even leading apparel and footwear brands like Nike and Dolce & Gabbana have created products that come with their own NFTs.
Moreover, the metaverse concept has opened even more doors for innovative NFT use cases.
BaaS or blockchain-as-a-service is a cloud-based service that allows users to develop their digital products with blockchain. The idea is that businesses can rent rather than build a blockchain platform of their own. With BaaS, companies can experiment with applications and smart contracts while enjoying blockchain features such as data security and improved transparency.
BaaS allows companies to enjoy the benefits of blockchain without having to invest in expensive resources and in-house competencies. BaaS is a great option for small and medium-sized organizations (SMEs). Big companies, such as Amazon and Microsoft, have already invested in blockchain technology and also encouraged its use as a service.
Zero-Knowledge Proof (ZKP)
ZKP is when one party conveys the value of something to another party without disclosing anything other than the value. For example, through ZKP, a new applicant for a bank loan doesn’t need to share personal information that isn’t necessary to secure a bank loan.
They would need to send proof that they have maintained a sufficient balance over the required period of time. Traditionally, an applicant would have to send their bank statements that may reveal more information than what the applicant is willing to share.
In public blockchains, ZKP ensures the security and privacy of user information and is another trend to look out for in 2022.
Interest in blockchain technology and development continues to grow across the globe. Whether it is reducing risk in financial transactions, bringing transparency to a supply chain, or defining ownership and value of NFTs, blockchain is seen as much more than a Bitcoin database.
And as the world recovers from the COVID-19 pandemic, blockchain is reaching new momentum as businesses look for different ways of addressing new challenges.
Most companies dream of the ability to establish blockchain-enabled networks, decentralize information and data and bring transparency and verification to various kinds of data. The year 2022 is the year of endless possibilities when it comes to blockchain development.
OWlab is a digital product development company with a focus on developing robust secure fintech solutions.