Blockchain is a complicated, but prominent topic that’s been mentioned a lot over the years. To put it simply, Blockchain is a distributed and secured database. Whenever two people agree on a transaction and verify it, the block is then closed and encrypted. Another block is then formed with the information of the prior block inside. The blocks are then chained together. Due to how secured blockchain is, every industry wants a piece of it for themselves.
Here are the top 5 trends happening within blockchain in 2022.
Web 3.0 is a concept that is very much so on the rise in 2022. We are currently in an era where Apple, Amazon, Microsoft, and others pretty much dominate our internet. What makes web 3.0 so interesting is that it’s the complete opposite. Web 3.0 is a decentralized internet where everybody can have the right to own and control. The combined market cap of the top web 3 networks is $27.5 billion. When you compare that to web 2 that’s pretty much a penny because with web 2 the market cap is $14.8 trillion. So, you might be wondering “where does blockchain fit into all of this?” Blockchain is basically the foundational technology for web 3.0.
Due to the nature of blockchain specifically with distributing identical copies of a database, this makes it hard for anyone to hack or cheat the system. That’s why it’s the power behind web 3.0.
NFTs on the Rise
When you think of NFTs you probably imagine people spending thousands of dollars on a simple digital picture of bananas, but it’s actually got more depth to it than that. NFTs became popular around 2021 but contrary to popular belief NFTs have been around since 2014. NFTs stand for Non-Fungible Tokens and is considered digital asset that can represent a real object like music, art pieces, selfies, videos, in-game items, etc.
As it pertains to Blockchain, Blockchain and NFTs have the possibility of colliding in several different ways. One of the ways is through music. Artists such as Shawn Mendes, Grimes, Nas, and many more have used this as an opportunity to release tracks and even albums through NFTs. The benefit of doing this is that it gives the artist the freedom to sell merch and music directly to their fanbase without a middleman
The World of Metaverse
We’ve seen the name plastered all over the place but honestly what is the metaverse and what does blockchain have to do with it? Metaverse is a 3D universe where users can play, communicate, and work together. Participants would interact in this universe by using their digital avatars. This includes creating in-world experiences and building objects/landscapes.
How does blockchain play a role in this? Through decentralization, user governance privileges, and connecting the larger crypto economy. Companies such as Microsoft, Meta, Google, Roblox, and even Shopify have invested large amounts of money specifically for their metaverse projects.
Blockchain within the Supply chain
Blockchain has really been a positive force within the supply chain industry. Transparency and traceability are the two systems impacted the most. With blockchain working within the supply chain, companies can be more transparent regarding materials being used and tracking them. The traceability would be increased to ensure that the corporate standards are being met. Corporate standards can include verifying where materials come from, where they go as they travel and who has access to them.
Decentralized Finance (AKA DeFi)
In a time where no one wants to wait anymore for transactions, blockchain has really been a force to help speed up the process and provide added security. The concept behind Defi is that the control is removed from the bank and institutions. Benefits of DeFi include being able to transfer funds in seconds/minutes and eliminating the fees that banks normally charge. Defi is a subject that is growing but there are still debates around vulnerabilities and regulations.
At Storm2, we work with the most innovative Blockchain companies worldwide. If you’re a blockchain business looking to hire a blockchain specialist to grow your team, we have specialized candidates ready for you to connect with. Get in touch with us!