11 Emerging Blockchain Technology Trends to Follow in 2022
Due to its unique data storage methods, experts predict blockchain trends in 2022 will act as a reliable source of future record-keeping and financial transactions among sectors. Public blockchains were deemed too immature for enterprise-level distribution due to poor scalability and interoperability in recent years. However, future trends of blockchain technology will not overcome these issues but act as a key player in services across the globe.
- Governance will use blockchain applications
- Blockchain will increase in retail
- Banking and financial institutions will adopt blockchain
- The crypto space will use stable coins
- Big Tech will enhance using BaaS
- Social media will rely on blockchain
- Real estate will rely on blockchain
- Blockchain networks will enhance interoperability
- Hybrid blockchains
- Streaming will be more secure with blockchain
- NFTs will revolutionize digital art
What is blockchain technology?
Instead of a typical database, blockchain technology stores information in blocks. These blocks remain connected. As users enter new data, the block retains that information until it becomes full. Once full, it moves to the previous block position and the process repeats itself. Therefore, the chains occur in chronological order.
Blockchains can store any type of data. However, IT sectors observe the most common data stored thus far consists of transactions. All users thus collectively retain control of financial records in digital assets. Using Bitcoin as an example, all data entered is immutable. This means all transactions recorded cannot be reversed and thus visible to anyone.
Emerging blockchain technology suggests that global entities will depend on the trend much more in future years.
1. Governance will use blockchain applications
One blockchain technology trend consists of practical government use. As cryptocurrency saturates markets, governments must prepare for its inevitable takeover.
Moreover, governments can benefit from a virtual currency. Each governmental agency has a separate database making it difficult to gain information about other databases. Furthermore, governments must comply with regulations frequently. This makes compliance difficult for global entities to achieve.
However, the future trends of blockchain technology increase the functionality of effective government data management. Managing substantial amounts of data becomes more feasible for these agencies.
2. Blockchain will increase in retail
As a result of increased emphasis on transactions, blockchain technology trends in 2022 will impact the supply chain industry. Supply chains have become incredibly complex in recent years. Authorities face many challenges locating criminal activity due to the confusion of sending and receiving payments. Plus, inventory management between supplier, retailer, and manufacturer can also blur illicit activity. The middlemen in supply chain management post great uncertainty to not only the authorities but also the retailers in charge of merchant services and credit card processing companies.
Large-scale growth in the retail industry is predicted, so there will need to be efficient inventory management and supply chain processes put in place. Moreover, many expect blockchain to save retail long after the pandemic. With the rising need for traceable, scalable customer service and logistics, emerging blockchain technology will consume the retail space.
3. Banking and financial institutions will adopt blockchain
More people are putting their trust in blockchain rather than the banking system. Banks now implement blockchain as a measure to attract and maintain their customers’ trust and loyalty. Like retail, fast transactions and immutable service without human intervention serve as a necessity rather than a luxury to capitalize on.
4. The crypto space will use stable coins
Cryptocurrencies emerge as a side product of blockchain technology. Although they are not new, they will continue to saturate many blockchain technology trends. With stable coins, you can make peer-to-peer payments. Furthermore, users can use them on smart contracts to conduct automated payments.
People can also use stables coins regularly, similarly to Fiat money. For instance, you can use them like any other digital currencies when making online purchases.
5. Big Tech will enhance using BaaS
Big Tech can implement blockchain into their business. Moreover, Microsoft and Amazon already invested in emergency blockchain technology and pushes it as a service. BaaS or blockchain-as-a-service refers to a type of cloud-based service that enables users to develop their own digital products with blockchain.
Typically, these products exist as smart contracts or applications that function without any setup requirements in the blockchain infrastructure.
As if social media wasn’t mainstream enough, blockchain will begin to work alongside it. Two major social media-related blockchain technology trends in 2022 include user identity verification and marketplace verification.
It’s no secret that bots plague social platforms. Not only is this a political issue, but also a marketing issue. Marketers waste efforts on empty profiles, so the need for user identity verification using blockchain technology and smart contracts continuously grows.
Additionally, as another future trend in blockchain technology, marketplace verification will increase a company’s growth potential. This gives users the ability to market to verified vendors, making marketing simpler.
Lastly, the incorporation of blockchain into social media will help verify published data. It is thus untraceable and cannot be duplicated even after it has been deleted.
7. Real estate will rely on blockchain
Relying on an inherent system of trust serves as one of the reasons blockchain technology trends keep growing. Real estate companies require trustworthy systems, making blockchain technology ideal for smart contracts and transparent ledger abilities.
Blockchain will aid in bridging the many unclear intermediaries in real estate processes. This emerging blockchain technology will also enable fractional ownership of property opening the door for millions of investors.
8. Blockchain networks will enhance interoperability
Blockchain technology makes it easy for users to transact from one blockchain network to the next. Interoperability makes it possible for the user to both view and manage all data available to them through different networks. Furthermore, better interoperability increases multi-token transactions with multi-token wallet systems. As a result, multi-functionalities can act like cross-chain transactions.
9. Hybrid blockchains
A hybrid blockchain uses the most accurate part of both public and private blockchain solutions. It works by generating hashed data blocks from a private network, then storing that data in a public blockchain. Transactions thus occur very quickly, and their associated costs are much lower. Moreover, they protect over 50% of attacks as it blocks hackers from breaking into the network.
Streaming services also act as Big Tech. Popular services like Network, Hulu, and Amazon Video attempt to implement blockchain trends in 2022 to store user data in more secure formats. In addition to movies and TV, music streaming services also look to implement blockchain technology. After the many data scandals in the past couple of years, Big Tech looks to crack down on security breaches, including streaming companies.
11. NFTs will revolutionize digital art
NFTs or non-fungible tokens serve as an electronic ID that authenticates the existence of a digital asset in real-time. An NFT represents items such as paintings or music as digital tokens. [/fusion_text][fusion_text rule_style=”default” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” animation_direction=”left” animation_speed=”0.3″]
The software used to write most cryptocurrencies also encodes these same tokens. They are all unique in that the code’s owner also owns the original art.
Non-Fungible tokens are becoming popular across games, digital asset exchanges, and blockchain platforms. In-game assets can be digitized and exchanged using NFTs.
Blockchain Developers and Other Positions
The average salary of a developer is $154,550 per year and the top earners earn an average of $231,500. Experts are predicting that the blockchain market will grow by 82.4% per year from 2021 to 2028. Additionally, according to LinkedIn, blockchain is the #1 most in-demand hard skill in the United States, United Kingdom, France, Germany, and Australia.
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