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What will blockchain look like in 2022?

If you often read our articles, you will surely know that blockchain technology is one of the hottest trends on the market right now. The union of its decentralized nature with a clever data encryption mechanism makes it so that Web3 may be close to replacing Web2. 

Although the enormous potential of this new tool is clear to many, understanding its exact future applications is complex. When the internet came out, no one imagined that we would be able to book our holidays online one day.

Predicting the state of the world in 2050 appears to be truly impossible. For this reason, in this article, we will limit ourselves to making some logical forecasts for 2022. Nevertheless, the market shows several significant trends, which we expect to grow next year.

A green revolution

Although this was initially not clear, we are now all aware that blockchains can use a lot of energy and lead to high CO2 emissions. This was, for example, the main reason why Tesla Inc. suddenly stopped accepting Bitcoin payments earlier this year. Therefore, in the next year, we will likely see a growth in environment-friendly blockchains and cryptos

A futuristic technological system absolutely cannot afford to damage the environment. So, what can we do to move in this direction? Something that is currently under study is, for example, creating a less energy-intensive blockchain system.

You have probably heard of Ethereum’s grand plans, which, with the Eth2 project, aim to create an eco-friendly blockchain network. The switch would largely depend on its proof-of-work (POW) internal system to put this in technical terms. It has been demonstrated that proof-of-stake (POS) is a technology that requires far less energy to work.

The NFT fever

Selling a digital asset in 2021 has become a big business. The invention of non-fungible tokens (or NFTs) introduced the creation of a proof of authenticity of a virtual asset. As a natural consequence, we saw the opening of many marketplaces for NFTs exchanges.

There are so many examples of this new business. Let’s think about how the co-founder of Wikipedia was able to auction the first online edit on the virtual encyclopedia. Or what about the enormous impact of this technology on the world of art? Grimes, Kings of Leon, and Shawn Mendes, among others, have been releasing their music as NFTs.

NFTs in the gaming industry were another huge business in 2021, and we have no reason to think that their popularity will drop in 2022. Many games allow users to create NFTs (by minting any digital asset) with proof of authenticity and, in the end, a chance to access a large marketplace worldwide.

Do not forget about the fashion industry: Nike and Dolce & Gabbana, to mention two recent cases, have launched footwear and clothing items connected to NFTs.

Will other countries follow El Salvador?

You certainly heard how El Salvador became one of the first countries to adopt Bitcoin as an official digital currency. This really means what you think: you can freely use BTC to buy services and goods in the country, and if you are an employee, your salary may be in Bitcoin. 

With all due respect, El Salvador is a relatively small country (with six million inhabitants), and we may wonder whether other governments will follow this path. While we appear far from a future in which fiat currencies will disappear to be replaced by cryptos, this political choice certainly makes us wonder.

Will other countries adopt Bitcoin (or other cryptos) as legal currencies? And, if so, which ones may be the next government to move in this direction? While some candidates may appear, 2021 has seen many nations abruptly ban cryptocurrencies.

Think, for example, of the war that the Chinese authorities (government and central bank) are moving against the crypto universe. Russian policymakers, too, as of recently, have given signals of crypto-aversion.

While the IMF is calling for a global policy on cryptos, many countries are still confused about acting on the matter. As a result, we expect to see substantial changes in 2022, but the direction that will prevail over the next 12 months remains unclear.

The changes coming with IoT

The “Internet of Things” (or, simply, IoT) is one of the most exciting trends in the modern tech world. The way blockchain handles huge interaction and transaction records among machines seems to serve the purpose of IoT perfectly. 

The data-encryption mechanism of the blockchain technology can effectively create an appropriate security level in IoT’s ambitious plans. However, IoT success appears to rely largely on the 5G network propagation.

We are starting to see several interesting IoT projects on paper, and, as we know, it can easily integrate the blockchain system into this network. However, effective implementation cannot rely on the existing old data connection.

If, as many believe, the 5G network will become more popular in 2022, it will make sense to observe how blockchains and cryptos will integrate into the IoT business. In addition, by connecting reality and the Internet, the Metaverse is another application (specular to IoT) that will need to be monitored next year.

Can blockchain help the world improve its health system?

Making predictions on the progress of the Covid-19 pandemic is complex. Additionally, it does not fall within our sphere of competence. However, it is no reason to exclude that this issue will also be present in the world in 2022.

Think, for example, of one of the main problems of recent times: tackling the creation of fake vaccines and certificates. This problem, apparently impossible to solve entirely, can find a simple solution in the traceability of blockchain technology.

Furthermore, many vaccines live thanks to the so-called “cold chain”. This supply chain is vital, as problems in this area can render a vaccine useless. In this case, a blockchain system can guarantee the correct execution of each step.

We are not talking about science fiction: IBM, for example, already applies blockchain technology in this area. Therefore, we may expect the trend not to slow down in 2022.  On the contrary, it will most probably lead to new inventions in the health industry.

Crypto 2022 – What can we expect from the future?

Things will get interesting soon between eco-friendly inventions. For instance, new countries may fall in love with Bitcoin. Alternatively, they can use the blockchain to monitor vaccination from Covid-19. Above all, it appears certain that in 2022 we will hear even more often about blockchain.

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Although many still struggle to understand the enormous potential of this technology, history teaches us to be patient. Web 2.0 was not immediately accepted by everyone as technological evolution, and, therefore, we believe that Web 3.0 too will take some time to enter our daily life.

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