In recent weeks, cryptocurrencies have been on a roller coaster: the rise of the Decentralized Autonomous Organization (DAO), the rise of decentralized finance (DeFi) versus traditional financial services business models, and the valuations of some NFT assets appearing defy logic. So what does 2022 hold for the blockchain industry?
While we can’t exactly predict the future, we can make educated guesses about the many developments that will shape this space in the years to come.
The predictions in this article are based on past industry trends, customer questions, and in-depth research on this emerging technology ecosystem. This article explores the trends that will shape the blockchain industry in the coming year.
- Governments will embrace blockchain technology
Blockchain technology can enable governments to conduct their businesses more efficiently. As they recognize the potential for efficiency and public trust of blockchain technology, governments will benefit from its many possibilities.
In recent years, some governments have experimented with blockchain technology in a variety of businesses and services, including land registry, accreditation for education, healthcare, procurement, food supply chains, and management of identity.
For example, Australia Post has announced plans to use blockchain technology for local voting, Estonia is using it to strengthen the integrity of its tax and commercial registration systems as well as electronic health records, and the UK is exploring this technology to monitor the distribution of social benefits.
With the rise in the adoption of blockchain by governments, 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 problems between the technology and its intended use. These same guidelines for blockchain adoption can also be used by companies.
- A greener blockchain could help save the planet
Blockchains are often criticized for the huge energy requirements needed to maintain their security. That is why Elon Musk cited changes in his view on automatic bitcoin payments in January 2021. It is likely that we will see many efforts to make blockchain technology greener and offset its carbon footprint around the world in the year 2022. This could be done in several ways:
Carbon offsetting is one approach. For example, crypto tokens intended solely for clean energy procurement could give organizations the ability to demonstrate that their business operations are climate-neutral compliant.
Another approach is to use less energy-consuming blockchain technology, which typically uses proof of participation rather than proof of work algorithms. When cryptocurrencies go green, blockchain technology can help tackle climate change.
- Other 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 incurred by intermediary financial institutions that facilitate foreign workers’ money transfers.
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 involve a digital currency that would work in tandem with the country’s fiat currency.
- 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 enforce their ownership rights on a digital asset.
I think the NFT 2.0 model will be less about art and more about utility, games, social sharing and access to hyper-exclusive communities. The metaverse concept alone will provide a wealth of new use cases for imaginative 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.
- Blockchain will be the most requested skill
The year 2022 will see increased demand for blockchain and cryptographic skills.
The growing popularity of cryptocurrencies, the growing importance of blockchain in various industries, and the growth potential in the blockchain industry are all contributing to an increased demand for blockchain and crypto skills.
Blockchain is now at a point where large corporations and governments, not just a tiny hyper-tech community of IT experts, are beginning to understand its potential to improve people’s lives and create more resilient organizations. Therefore, companies need blockchain experts who can help them apply blockchain technology to achieve their business goals.
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 likely the technology that will revolutionize the way we do things for decades to come. So it’s time we start thinking about incorporating it into business models.
Article translated by Forbes USA – Author: Sani Abdul-Jabbar (Chairman of the Board of VezTek, a Los Angeles-based vendor providing startup support and on-demand technology talent for enterprise IT teams at scale- up.)
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