The blockchain and crypto market has grown exponentially over the past few years. Trends and adoption driven by the blockchain and crypto market are predicted to continue growing at a rapid pace in the coming years.
The Asia-based market research company, Tailor Insight, has released a report on ‘Main Trends of Blockchain and Crypto in 2022’. The booming of De-Fi in 2022, as well as the growth of NFT, is unexpected. Furthermore, a growing number of traditional financial institutions are entering the crypto market, increasingly believing that crypto is here to stay. The blockchain industry is changing in several interesting ways.
Blockchain Technology To Tackle 5G IoT Challenges
Due to blockchain’s automated encryption and immutable nature, it can potentially solve many security and scalability related issues. The year 2022 will likely bring more pilot projects and use cases in this area.
Metaverse application is another top blockchain trend in 2002
Metaverse is the emerging world where ‘immersive’ experiences are possible using new technologies such as blockchain, augmented reality, and virtual reality. The Metaverse would be incomplete without blockchain technology, because everything would be stored in a centralised network.
Using blockchain, a new generation of social networks could emerge that are bigger and better than the current ones that are now synonymous with the term social media. In 2022, blockchain platforms will run on Metaverse and offer NFTs and cryptocurrencies. The new digital economy is powered by cryptocurrencies, as well as assets such as NFTs that define ownership in the Metaverse.
CBDCs is becoming popular
According to the Bank of International Settlement, 80% of the world’s central banks are exploring Central Bank Digital Currency (CBDC) projects in 2021, indicating that 2022 will mark a further milestone. Cryptocurrencies are here to stay, and governments are introducing CBDCs to ensure their monetary systems remain relevant to consumer demands, not necessarily to eliminate Bitcoin and other private cryptocurrencies.
There is a rapid rise in the use of De-Fi as a transparent and permissionless way for users.
As of this year, De-Fi’s assets totaled more than $180 billion, and it is expected that this figure will continue to rise in 2022. As there is an increasing need to replicate physical item properties, such as uniqueness and ownership proof, we will see the De-Fi market continue to grow as well as more De-Fi applications appear. In the longer term, regulations to come and the increasing acceptance of crypto may lead to more convergence between traditional or centralised finance (CeFi) and decentralized finance (DeFi).
The Innovative NFTs
2022 is expected to be another year of significant growth for the NFT market. As more and more items are becoming digital, there is an increasing need to replicate physical properties such as uniqueness, ownership proof, and scarcity. In addition to the Metaverse concept previously described, there are many other ways NFT can be used to innovate.
Several new use cases have emerged in the NFT market such as games, music, ticketing, social media posts, etc. This is due to the various benefits and potential profits.
There will be regulatory intervention, however, due to the risks and challenges this market faces. As a consequence, a non-fungible token regulatory body is vital for its better regulation and legalization. The outcome could have a profound impact and will determine the future of NTFs. The way forward is still uncertain.
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