by Nikola Sekulic on March 3, 2022
Blockchain technology has been revolutionizing businesses and entire industries for over a decade. Given the vast number of use cases for the blockchain and the fact that it is being widely adopted in the private, civic, and governmental sectors nowadays, it’s important that we stay on top of the latest trends in the sector.
For one, it’s important to keep in mind that the blockchain is evolving rapidly, and understanding the latest trends can help investors invest in new ICOs and innovative solutions and products. In the government and civic sectors, on the other hand, the blockchain opens numerous doors for cryptocurrency development and trade, and a completely new digital experience.
Let’s talk about this in more depth and take a closer look at the blockchain trends you should follow this year.
Investing in NFTs will continue to soar
In 2021, NFTs (non-fungible tokens) experienced a boom in popularity and market value. As a unique digital token on the blockchain, an NFT can amass a lot of value very quickly. There are many factors that feed the value of an NFT, but the fact that it cannot be reproduced and that every NFT is one of a kind is one of the key price drivers. Probably the most popular and most expensive NFT ever sold is Beeple’s EVERYDAYS: THE FIRST 5000 DAYS, which sold for $69.3 million in January 2021.
Ever since NFTs entered the digital marketplace in 2021 in such a big way, people and investors have been looking for different ways to invest in NFTs and monetize their tokens as much as possible. In 2022 and beyond, we are going to see a massive diversification in NFT investments, though, ranging from NFT games (more on that in a bit) all the way to NFT collectibles, funds, designer products, stocks, and fine-art pieces.
Bitcoin as an inflation-resistant asset
Taking a break from NFTs for a moment, let’s talk about cryptocurrencies and specifically Bitcoin as a safe financial asset. You probably never heard the words safe and Bitcoin in the same sentence before, which shouldn’t be a surprise given that Bitcoin is typically labeled a volatile asset class. However, there are certain benefits to investing in Bitcoin that go beyond the high-risk-high-reward concept.
For one, the current Bitcoin prognosis tells us that in 2022 this cryptocurrency might become a safe investment for those looking to protect their assets against inflation. We can thank the COVID-19 crisis for weakening the global economy and driving inflation up in the last couple of years, making it imperative to invest in assets that are immune to inflation.
As a digital currency, Bitcoin is one such asset.
The rise of pay-to-earn NFT games
Circling back to NFTs, there’s no denying that there are many ways to invest in, create, and monetize a non-fungible token. One of the most popular emerging NFT trends right now are NFT games and play-to-earn models in the blockchain space. Essentially, an NFT game is another way to sell your NFT to a collector playing the game, or to collect NFTs through a play-to-earn system.
There are many popular NFT games out there, including Axie Infinity and CryptoKitties, all revolving around a monetization model using in-game NFTs for trading. For example, when you level up a character in a game or collect numerous in-game NFTs, you’re able to sell those “NFT assets” to another player or a collector for cryptocurrency, which you can then exchange for fiat money.
Alternatively, you can use your crypto earnings to invest in other cryptocurrencies or in-game NFTs. The concept is new for many, but there is no denying that NFT games will become a powerful monetization strategy for NFT collectors and traders in 2022.
Pushing towards Eco-friendly blockchains
Blockchains and the whole concept around mining cryptocurrencies have been in the public spotlight for years now, and not in a positive one when it comes to energy consumption, environmental impact, and the availability of raw materials. We can’t deny that for all the benefits it brings, the blockchain is consuming vast amounts of energy, which has pushed some leaders in the industry, like Ethereum, to start investing in Eco-friendly solutions.
Carbon offsetting, although frequently mentioned as an Eco-friendly example, is more a temporary remedy than a solution. A more long-term solution might be investing in the less energy-demanding blockchain networks. By adopting a proof-of-stake model instead of retaining the proof-of-work model, blockchains can reduce energy consumption and the time it takes to approve transactions.
Blockchain technology and the metaverse
In case you’re unsure, you can think of the metaverse as a network of virtual applications we use to achieve social connection and interaction. From PokemonGo to Roblox, Facebook’s Meta and beyond, companies around the world are creating immersive 3D virtual experiences where we can connect with others and “live” a virtual life.
Needless to say, there’s no better place to build a safe, sprawling metaverse than on blockchain technology. Because of its decentralized nature, the blockchain is able to grant safe and seamless access to the metaverse, free of cybersecurity and fraud risks, or poor user authentication.
But aside from privacy and security, the blockchain also connects the metaverse to the crypto economy, making it ideal for companies to invest in in 2022 and the years to come.
Wrapping up
The blockchain is a revolutionary technology that can bring innovation to every industry in the world and transform the modern way of life. Whether you’re an investor, a business leader looking to branch out into the blockchain sphere, or an enthusiast looking for the new big thing, you need to follow the latest trends. In 2022 and beyond, we can expect these trends to turn into lucrative investment opportunities in the business, government, and private sectors.
Collected at: https://datafloq.com/read/5-blockchain-technology-trends-to-follow-in-2022/