In the ever-changing landscape of finance, a remarkable phenomenon has taken hold: the rapid growth of decentralized finance, or DeFi. This ...
After the internet, Blockchain is considered to be one of the greatest disruptions of this era. Blockchain adoption is increasing at an exponential rate across various industries and this is mainly because this is one of the most immutable technologies that makes the operations more transparent. From coffee supply chains to digital currencies, this technology is doing wonders.
But what exactly is Blockchain technology? Blockchain is a system of recording information in a way that the information becomes nearly indestructible. Blockchain is majorly a transaction of digital ledger that is distributed across the entire network of nodes on a single blockchain. Each time a new transaction occurs, its information is added on the ledger. The database that is managed by a number of stakeholders is known as Distributed Ledger Technology or DLT.
Hence, Blockchain is a DLT in which transactions are recorded on a hash, which is basically a cryptographic signature.
So, without going into much technical details of this technology, this was the basic introduction of this amazing technology.
Moving Forward into 2022
Now we know what Blockchain exactly is, and how this technology is disrupting some of the major sectors of economy. So, what’s next? Where is this technology heading towards in 2022? You might be surprised after knowing what Blockchain might have in store for you! This section reveals some of the greatest Blockchain trends that are going to rule in 2022-
1. Blockchain as a Sustainable technology
After Elon Musk's decline in accepting payments in Bitcoin in 2021 due to the alarming rates of Carbon emissions, and environmental damage done by Blockchain, an initiative to make Blockchain more eco-friendly was started. Needless to say, this is one of the greatest trends that most organizations are keeping on the top of their charts.
The growing energy consumption of Bitcoin & Ethereum, the two largest currencies based on Blockchain, is attributed to the massive use of energy due to their dependence on the computer-intensive proofs-of-works.
A Bitcoin Energy Consumption Index was curated to provide insight to how much energy Bitcoin consumes, and to raise awareness around making Blockchain a more sustainable technology. The insight below clearly shows the trends in rising Bitcoin Energy Consumption for a time period of a one year.
Mending this for Bitcoin is nearly impossible, but with Ethereum, the plans are to shift this Blockchain to a more eco-friendly POS model in 2022.
2. The expansion of NFTs
Everyone, even those with a slight interest in digital currencies is well aware of the growing hype around NFTs. After Beeple's First 5000 Days sale for $69 million, the concept of unique digital tokens based on Blockchain gained great public precedence. The currency has also taken a great hold in the music industry as well as in the gaming industry. Shawn Mendes and some other big names in this industry are releasing tracks that are specially designed for the NFT format. You would be surprised to know that recently a 46-year-old whiskey was sold alongside NFTs. So, undoubtedly NFTs are paving their way in almost all industries.
3. An increase in the adoption of national cryptocurrencies
We all are well aware of the increase in adoption of the digital currencies over the year. More so, many countries have also started to legalize currencies based on Blockchain technology, making it a legal tender to be accepted for the trade of goods and services.
The adoption of Blockchain and cryptocurrency have rose exponentially over the past two years. 2021, was apparently called the year of cryptocurrency. As the numbers state in the insight below, the price of Dogecoin have increased by 7,555%, and that of maker by 760%. The numbers are huge, and the growth of Dogecoin in comparison to other cryptocurrencies is majorly due to its hype and ‘built-in-scarcity’ feature of Bitcoin.
Source: Chart: 2021: Year of the Cryptocurrency | Statista
Moving forward, El Salvador adopting bitcoin as legal tender, and China banning all cryptocurrency transactions, was some of the biggest news around cryptocurrency in 2021. Also, the global cryptocurrency market size is projected to reach $4.94 billion by 2030, growing at a CAGR of 12.8% from 2021 to 2030.
4. Blockchain for vaccine tracking
The COVID-19 global pandemic is still affecting major countries all over the world. So, using Blockchain in tackling the healthcare supply chains and vaccine tracking will still be on the top of this era’s trend. According to WHO, 1 in 10 medical products in low and middle-income countries is counterfeit, causing huge medical losses. Blockchain technology can help in shipment tracking and make the supply chains more transparent to reduce fraud.
The challenges healthcare is facing due to the pandemic are likely to sustain for longer periods, and Blockchain due to its power to transform supply chains, manufacturing, and management of vaccines is going to be in trend in 2022.
5. Integration of Blockchain and IoT
Both Blockchain and IoT are important digital transformation technologies, and when combined together they can do wonders. Blockchain, as we know, is a digital ledger technology and can help enable secure peer to peer transaction in combination with IoT. Many industries such as banking, automation, financial services are already implementing Blockchain with IoT across its operations.
Global Blockchain IoT Market is valued approximately at USD 59.42 million in 2019 and is anticipated to grow with a healthy growth rate of more than 90.33% over the forecast period 2020-2026. Although the concept of Blockchain and IoT integration is still in its infancy, but in coming years this combination can make a huge impact.
Blockchain is certainly one the greatest technology of this era. The trends above showcase how much this technology has evolved and going to transform in the upcoming years. Some of the trends that ruled in 2021 are still relevant in this year, majorly because our enterprises are still facing the same challenges. So, ending on this note, keep in touch to know what more about other fascinating technological disruptions Blockchain is bound to bring!