Blockchain is hot at this moment. The business has an amazing Compound Annual Growth Rate of more than69% between 2019 to 2025. Blockchain is presently not simply applicable to cryptocurrency. Blockchain-based applications are arising to help numerous different situations that require decentralized data storage and openness. Let's have a look at the possible blockchain trends that are likely to occur in 2022.
Proceeded with Blockchain Investment
In the first place, we will probably see more noteworthy investment in blockchain innovation in the approaching year. The maximum part of the adoption will be seen in the case of finance since the use of blockchain in the finance sector will increase at a value of $22.5 billion by the year 2026. Be that as it may, outside of finance, blockchain investment will saturate imaginative areas too. For instance, spending on blockchain in healthcare will ascend to $5.61 billion by 2025.
The emphasis will be on cryptocurrency rules.
Controllers all throughout the world burned through 2021 concentrating on the financial ramifications of bitcoin.It is fair enough to claim that 2021 has undergone a whole lot of regulatory action. We have incidents ranging from El Salvador's adoption of bitcoin as a legal tender, all the way to China's prohibition with respect to crypto-related activities, and further down to India's assertion of a crypto regulation bill soon having a ban on all private cryptocurrencies. In 2022, the inclination is projected to proceed. It is likewise conceivable that a central bank digital currency (CBDC) will be in introduction.
The ascent of the NFT market is supposed to proceed.
NFTs have worked with admittance to decentralized funding opportunities for artists and creators. Thus, they have more leeway in funding its creation. NFTs are highly secure and assist with validating the responsibility for digital assets since they depend on blockchain innovation. On account of these benefits, NFTs are extremely popular among artists and creators. Thus, the crypto market projects to encounter an expansion in the NFT market's valuation.
Cross-border Payments
With the anticipation of reaching $39 trillion by 2022, cross-border payments are developing immensely. A majority of this development traces back to online businesses, borderless eCommerce, cross-border B2C payments, and global trade improvements. A significant blockchain trend to witness in the future, cross-border transactions leverage encrypted distributed ledgers that provide authorized real-time validation of transactions without the presence of intermediaries like correspondent banks. With blockchain technology, treasurers, beneficiaries, and their customers are experiencing a drastic change in cross-border payments experience.
Smart Contracts
Blockchain technology has various applications and smart contracts are amongst the most popular ones. These contracts are nothing but computer programs which the blockchain stores. This blockchain governs an agreement's aspects and runs when the set conditions or factors are met. They don't require the presence of an intermediary and prevent any time loss since they are self-enforcing and self-executing. Once the action takes place, update takes place in the blockchain and it's not possible to alter it. Additionally, people with permissions are the ones who can see it.
When the conditions get a tick-mark, the smart contracts get into automate state in the workflow triggering the next action. They serve as an automated and more secure alternative to the conventional contract law. Furthermore, it's much cheaper and quicker in contrast to the traditional methods. Speaking about smart contract use cases, they are nearly limitless and extend to almost any field of business where contract law is typically applicable.
Real-world examples of smart contracts usage are:
- Medicine supply chain and safeguarding
- Simplification of international trade
- Flight stalled insurance payments
- Voting tools
- Token-based smart contracts for crowdfunding
Identity Management
A problem since the late 2000s that still prevails is identity security. However, we have various use cases or applications of blockchain and identity management to deal with this. For instance, with blockchain, we can maintain voter information and ensure the proper functioning of the electoral process. In addition, blockchain is also responsible for the safe and secure transfer of user data across systems and platforms. Further, it plays an integral role in maintaining and protecting real estate ownership and titles. We can agree that we manage various digital profiles and passwords while we manage passports, licenses, government documents, or insurance, and the probability of online larceny of such identities is perpetual. To ensure tight and high-end security for such identities and empower self-sovereign identity, we leverage blockchain's independent verification process.
Final Words
These are just a few of the trends that we are yet to witness in the Blockchain domain. With such massive developments, it is certain that making a career in Blockchain won't be a bad idea either. So if you wish to go forth in this domain, don't hesitate but be sure to research properly and then take a step, as in if you want to become a self-taught blockchain professional or want the support and guidance of an institute. Skillslash is there for you in case you wish to seek guidance and support. We provide our Blockchain certification course and Data Science course in Bangalore with a 100% Job Assurance initiative to ensure that every individual gets placed and lives the dreams of their life. Good luck on your journey and keep learning.
