Cryptocurrencies are strongly associated with blockchain technology. Blockchain is a distributed and encrypted type of database that exists across networks and caters to a wide variety of issues. Over time, blockchain use-cases have expanded across various industries such as logistics, supply chain management, international payments, secure information exchange, etc. The possibilities of blockchain technology are more comprehensive and developing along with DeFi, Metaverse, NFT, and CBDCs. In 2022, it is expected that several trends will impact the cryptocurrency landscape.
In 2021, the total market capitalization of cryptocurrencies exceeded the $2 trillion mark. International Data Corporation’s annual global expenditure on blockchain solutions reports a new all-time high of almost $11.7 billion in 2022. In essence, it is expected that the global blockchain market will grow at more than 69% CAGR between 2019 and 2025.
With all of these fascinating statistics, wondering what blockchain technology brings us this year? Let’s explore that.
DeFi Security Boost
This year might bring about some significant changes to DeFi (Decentralized Finance). By 2025 the global economic loss from cybercrimes is predicted to hit $10.5 trillion, and more than $600 million has been stolen from DeFi ecosystems in 2021. 97% of all cryptocurrency stolen in the first three months of 2022 has been exploited from DeFi protocols. All of this led the global FinTech industry to enter the market for providing solutions to address these challenges and pay special attention to decentralized finance.
Metaverse is Everywhere
Blockchain predictions focus mainly on big tech companies’ potential technological support for the Metaverse. One of the goals of the metaverse is decentralization, which enables transparency and seamless access to the metaverse that also relies on blockchain capabilities for ensuring user governance privileges alongside verifiable provenance. Most importantly, blockchain infrastructure increases connections for the crypto economy. Adopting metaverse games and newly developing blockchain projects would highlight 2022 and lead to forming inline communities. Individuals will get personal social and investment opportunities, enhance parallel economics and share new content experiences.
Non-fungible tokens, or NFTs, became one of the most demanded phenomenons in the blockchain industry in 2021. The world could not stop discussing NFT-trading since one of them was sold for $69 million in 2021. The growth of the Metaverse keeps evolving NFTs’ challenges for ownership of digital assets. Virtual experience creates a wide range of NFTs — from virtual property and artworks to digital passes and play-to-earn games. Tokenisation and gaming open new possibilities for community growth. In-game assets would be sold at NFT marketplaces for profit.
Why 3rd and 4th generation blockchain solutions
More and more countries are adopting cryptocurrencies. The 3rd and 4th-generation blockchain solutions created to tackle issues surrounding the speed and scalability of networks without decentralization are fast on the rise. Third-generation blockchain platforms allow for cheaper transaction costs and faster speed. Fourth-generation systems will promote trust in easy-to-consume ways and reconfiguration of business networks.
These generations of blockchains will simplify the interaction of blockchains at the lowest level with simple interfaces that will facilitate the implementation of the technology across various industries and governments.
For example, interoperability platforms like Teleport Network provide infrastructure and framework support for building cross-chain applications, abstracting way all complexities and arduous processes involved in blockchain operations, particularly in DeFi.
Technologies can be a disaster for the environment, and Bitcoin is one of them.
Blockchain technology has an environmental impact resulting from the enormous energy consumption required by the most popular blockchain protocols. We will see an increased focus on implementing more eco-friendly algorithms like Proof-of-Stake.
The demand for Blockchain-as-a-service is growing. By 2027, it is expected that the global BaaS market size will reach 25 billion dollars.
The cloud-based solution allows customers to collaborate with blockchain to create digital products without delay. Companies such as Microsoft, IBM, and Amazon will offer users more and more BaaSsolutions, building infrastructure, and configurations. Leading players will adopt efficient growth strategies to create products such as smart contracts and decentralized apps and expand their presence in the market.
Web3 enables the next generation of the internet to create a decentralized paradigm to open public blockchains. The possibility of ownership and selling content through NFTs has become a massive revolution. World Wide Web technology will give us back control of data through decentralized applications. Every byte of data will be encrypted. The idea of Web3’s future where participants now own what they do is coming. In contrast to Web 2.0, where big corporations such as Facebook are paid for Ads, on Web 3.0, money goes directly to users.
IoT, 5G, and AI integration
We see a growing trend of blockchain integration with Big Data, Artificial Intelligence, the Internet of Things (IoT), and 5G. Blockchain is potentially the most efficient way to 5G IoT solutions and will help them solve problems around security and speed of information transfer between machine-to-machine transactions. By 2025 its capitalization can reach more than 1.6 trillion dollars. 5G networks will be able to transfer Big data while Artificial intelligence will use the blockchain to create the virtual programs and spaces for the Metaverses.
Every day we see how the crypto world changes and expect the development of innovative blockchain solutions. The new technologies are growing with the rise of cryptocurrency market demands, and the trends listed above will keep going on their journey in the crypto world for years to come. We took a look at eight of the biggest blockchain trends of 2022 and predicted how they would shape a blockchain space this year. Always follow the smart trends.