Blockchain is, without a doubt, the most exciting technology trend in years. Although most people think it only powers what is behind cryptocurrency, the truth is that blockchain is offering both developers and creators new opportunities to offer new kinds of products across the digital spectrum.
Blockchain is valuable for any decentralized transaction that must be securely recorded, whether it is financial services, tracking data movement, or logistics. Let’s take a look at some of the trends that will impact blockchain development for the next year.
1. NFT: from mainstream to stardom
NFTs are certainly trending right now, and we expect it will be a key factor in the digital economy next year. They started as certificates of ownership for collectors of digital images and have evolved into much more, from code to music to game tokens. The introduction of Meta’s Metaverse will inspire digital mavens to aggressively pursue NFT for future value, positively impacting its development throughout the next 3-5 years. Analysts predict that the NFT economy will count for USD 100 billion in 2022, with mainstream players such as Electronic Arts, Disney, and the entire music industry entering the arena looking for new revenue streams.
2. National cryptocurrencies
In 2021, El Salvador became one of the first nations to adopt Bitcoin as legal tender. Through the Chivo Wallet, you can pay for goods and services, and companies are paying salaries in Bitcoin. Analysts predict that in 2022 we will see other countries follow suit.
Alexander Hoptner, CEO of crypto exchange BitMEX, predicts that at least five developing countries will start accepting Bitcoin next year, fueled by global inflation and rising remittance fees from financial “middleman” organizations targeting foreign workers who send money to their home countries.
While the Nayib Bukele government adopted Bitcoin, countries like Tunisia and Ecuador are working in national cryptocurrencies controlled by their central banks. These projects generally involve digital currencies operating alongside existing traditional currencies, allowing central banks to maintain control of the circulating supply and keeping the token’s value linked to the value of the national currency. If these attempts succeed, we will likely see an explosion of national cryptocurrencies in the upcoming years.
3. Ecological Blockchain
Mining bitcoin uses up significant amounts of electricity due to the necessary computing power. Critics argue that Bitcoin’s energy use attempts against sustainability, and it is not justifiable. Reports have estimated that the Bitcoin grid uses as much electricity as entire countries like Denmark or Ireland.
Green blockchain projects are already becoming relevant and gaining traction worldwide, like Solar Token, powered by solar energy, or Greenb2e, which is currently working on a project to monetize earth-bound CO2 emissions. In 2022, we expect governments to generate incentives for these types of projects to lower energy consumption while complying with the Paris Agreement on Climate Change.
4. Not enough blockchain professionals
Blockchain is also affected by bottlenecks caused by a shortage of experienced workers in emerging technologies. While colleges and universities are trying to keep up with this rapid development, breakthroughs only highlight the skills of those proficient in blockchain solutions.
As what is happening with artificial intelligence, there simply aren’t enough workers with blockchain proficiency to keep up with all the projects moving around the industry. Add in the 2019-2020 pandemic accelerated the blockchain technology skyrocketing salaries for those who can handle these types of implementations.
