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Top 5 Blockchain Trends To Watch In 2022

Blockchain technology is the talk of the town. This is due to the fascinating features it offers as well as the timely answers it provides to a variety of organizations, both offline and online. Blockchain technology is a huge part of the digital world, and it's just getting bigger every day as new features are introduced. In this article, we are going to understand what Blockchain actually is on top of sharing the top 5 trends in the Blockchain industry that you should watch closely in 2022. So, without further ado, let’s dive into it!

What is Blockchain?

In simple terms, the Blockchain is a decentralized, public, and unchangeable database that enables real-time transaction processing and tracking across a network of enterprises. The application of Blockchain technology is not restricted to monetary transactions and cryptocurrency only; in fact, it can also be used to track actual assets. For instance, real estate, automobiles, insurance, and several other commodities can all be tracked using Blockchain. Most importantly, it also enables you to track intangible assets such as copyrights, voting records, certifications, patents, and trademarks while retaining their accuracy and legitimacy.

Technically, the term "Blockchain" refers to an immutable database that is distributed across a network of computers. All the data sent over the network is organized into blocks, which store the data until they are completely full. When a block is full, it is closed and linked to the next block that stores the upcoming data, and this process keeps on going to store new information in the Blockchain. From the very first to the very last block, the blocks are linked together like a chain. The beauty of Blockchain technology is that it allows a transaction/record to be added to the database only after the consensus of all the nodes in the network, and once it’s in the database, it cannot be altered.

Top Blockchain Trends Shaping 2022’s Market Landscape:

2022 is shaping up to be an amazing year for the Blockchain industry. Cryptocurrencies are a worldwide success, and we're witnessing considerable growth in a variety of other market segments. As the Blockchain becomes more integrated into everyday life, 2022 is the year for innovators to think about switching to Blockchain technology. Considering this, let’s take a look at the top 5 trends in the Blockchain industry in 2022 that will shape the market landscape.

1- The Growth of Blockchain Gaming:

The gaming industry has profited from the COVID-19 in a big way and has been on an absolute tear. According to reports, the gaming industry generated around $90 billion in revenue, with more than 2.5 billion players in 2020 alone. Furthermore, studies show that the gaming industry will reach the $256.97 billion landmark by 2025. However, with the rise of the gaming industry, the demands of the players are also increasing. This pushes the developers and companies to come up with new and effective ways to optimize the user experience. That’s where Blockchain comes in.

Blockchain technology is revolutionizing the gaming industry and paving the way for major improvements in online interactions and online economies to enhance the overall experience for gamers. Most importantly, Blockchain is setting the foundation to take VR gaming to a whole new level with the introduction of Metaverse.

Typically, online games come with a marketplace where you can purchase different items and resources using the game currencies to enhance your gaming experience. However, the problem is that you don’t actually own any of these exotic items or game resources. As a result, players who invest their precious time into the games get nothing but personal satisfaction from their gaming experience, and that too for a limited time. Eventually, you would most probably quit the game as well.

So, what would happen with all the game currency you had earned with sheer hard work and dedication? Also, what about all the exotic and rare resources you have collected in the game? It’s all going to be wasted. Now, what if I tell you that you can cash in your game currency along with all other game resources/assets you own? Yes, you read that right, and it’s all possible with the Blockchain. Integrating Blockchain in online games can actually help gamers earn money by doing what they love, i.e., playing games. With Blockchain, you can develop a native cryptocurrency for your games to replace the traditional game currency.

Introducing native cryptocurrency in online games will allow gamers to exchange their currency with any other major cryptocurrency like Bitcoin, Ethereum, etc., on top of allowing them to withdraw their earnings in any real-world currency like USD. Moreover, introducing Blockchain in online games can transform your traditional game assets into Non-Fungible Tokens (NFTs), giving them the value of a truly digital asset that can be minted, traded, bought, sold, or even mutated to enhance their value.

Lastly, Blockchain can help verify the true ownership of any asset on top of keeping a record of each and every transaction happening within the game. All in all, Blockchain can take the gaming experience of online games to a whole other level. There has been a lot of work going on in the Blockchain gaming sector, and 2022 will definitely set a new foundation for the modern gaming era.

2- Central Bank Digital Currencies:

Central Bank Digital Currencies (CBDCs) are here to stay, and there is no doubt about it. Basically, CDBCs are digital tokens, similar to the cryptocurrency issued by central banks. Over 50 countries worldwide are looking into ways to transition to CDBCs. Some have even implemented them. CDBCs will allow individuals, businesses, and nearly everyone in the private sector to open a digital wallet or bank account with their central bank directly.

CBDCs would allow the central bank to directly stimulate and communicate with individuals, something that is currently not possible. Many people in the United States and other countries do not have access to financial services. CBDCs' primary goal is to provide privacy, transferability, accessibility, simplicity, and financial security to businesses and consumers. The US government openly acknowledges working on CBDCs. However, CBDCs are currently the subject of several questions that include:

  • How is credit created?

  • What is the role of central banks and governments?

  • How will the banking system operate once CDBCs come to play?

  • How are transactions processed?

There is constant work going on in the Blockchain industry to revolutionize the traditional banking system, and hopefully, these questions will be answered effectively later this year. All in all, it’s clear that Blockchain would have a huge impact on the future of CBDCs as well as the future of global finance in general.

3- The Metaverse and Entertainment:

Currently, Metaverse is one of the hottest topics that everyone is talking about. Most of us know Metaverse as a technology that would allow individuals to create their own personalized virtual worlds. While it’s true that Metaverse allows you to create a virtual world that uses Blockchain technology and cryptocurrencies to provide an immersive experience, it’s important to highlight that this is just one of the many use cases of Metaverse technology. Now that we’ve shaken up your concepts about the Metaverse, let’s set them straight.

In its most basic form, Metaverse is an economic ecosystem of a decentralized application. In simple words, it’s about having a native currency and marketplace in a decentralized application where users can utilize their tokens to purchase different items, sell their items to get tokens, as well as trade their items with other resources. It won't be wrong to say that the ability to utilize the native currency of the platform within the platform on top of having the means to generate/earn the native currency from the same platform is what Metaverse is all about. Having said that, Metaverse is one of the deepest industries having limitless potential.

Metaverse has shaken up a lot of industries with the introduction of AR and VR. For instance, the music industry is utilizing Metaverse to arrange virtual concerts. Similarly, Metaverse is enthusiastically embraced by software and game developers from a variety of industries. The gaming industry is using Metaverse to allow its players to make their own virtual worlds. Sandbox is a prime example of the Metaverse in the gaming industry.

Basically, Metaverse provides gamers an immersive virtual world where they can be represented by avatars. It also allows players to roam around and interact with one another and create in-world landscapes and objects. Users can purchase, sell, and trade digital real estate, items, avatar accessories, and more in the Metaverse. All this is possible with Blockchain technology.

Blockchain technology not only enables the smooth transaction of tokes and digital assets within the Metaverse, but it also ensures their security by using diverse security mechanisms, including consensus methods, cryptography, cryptoeconomics, etc. In short, Metaverse has a lot of use cases, and the possibilities of integrating Metaverse into more industries are rising with each passing day. Giant companies like Facebook and several medium to small size businesses are already investing heavily in the Metaverse, and this interest is going to keep rising in 2022.

4- Sustained Interest In NFTs:

NFTs (non-fungible tokens) skyrocketed in popularity in 2021, bringing cryptocurrencies and Blockchain technology into the spotlight. Basically, NFTs are essentially tokens on a Blockchain that represents ownership of a unique asset. These assets can be avatars, weapon skins, artwork, or even land in the Metaverse. An important point to note is that each NFT is unique, and its value depends on its usage and popularity. So, NFTs cannot be replaced with another identical token. If you want to learn more about NFTs, make sure to check our detailed article on “What are NFTs and how do they work?”.

NFTs have shown the potential to change the gaming world. For example, your in-game avatar can be your unique NFT, and you can trade or swap them for profit. You can also make money from NFT games using a newer, play-to-earn paradigm. Play-to-earn NFT games allow players to generate an income stream while they are having fun. With the rising interest in Blockchain gaming and the Metaverse, it's safe to assume that people will sustain interest in NFTs in 2022. As a result, you can expect to see countless new NFT collections in the market.

5- Insurance Sector To Adopt Blockchain

The insurance companies are actively adopting the Decentralized Autonomous Organization (DAO) model using Blockchain. It’s because there have been a lot of cases related to fraud, false claims, and contract violations throughout the world in the insurance sector. Before Blockchain, there was no definite way to address these issues. However, the introduction of Blockchain in the insurance sector has changed it all. The essence of using Blockchain technology in insurance companies comprises the following benefits:

  1. Blocks false insurance claims

  2. Reduces administrative costs through automated verification

  3. Innovation for digitally savvy customers

  4. Enables enhanced customer experience

  5. Builds transparency between insurance providers and holders

Blockchain has made insurance processes and programs clearer and quicker to use. Blockchain technology is a peer-to-peer machine that operates on a decentralized ledger. This digital ledger records premiums paid by each insured along with other applicable information about the trade. For this reason, the insurance holder has the honor to choose and further decide upon a final claim agreement when a claim has begun. All this makes the process transparent and incredibly effective with a well-secured premium collection, administration, and claim payment.

Moreover, Blockchain has created an immutable storage system for every information or data in the insurance sector by delivering a digital ledger that records deals and trades between the insurance company and its holder. The Blockchain network enables more secure and traceable data records than traditional centralized storage systems. You can check our detailed article on the Benefits of Decentralized Storage Systems to get a better idea about this.

With Blockchain, insurance companies can use smart contracts that enable insurers and holders to access information in a flexible and smooth online space. Most importantly, users can transfer finances on the Blockchain using its electronic cash system, which runs faster than other payment approaches.

All in all, Blockchain is already running riots in the insurance sector, and it will continue to expand as more insurance companies adopt this technology. Moreover, the Blockchain industry is experiencing continuous growth and development. This means Blockchain will keep on offering new and more exciting features in the future. Considering this, it's possible that Blockchain will change the entire business model of insurance companies in the near future.

Final Thoughts:

In conclusion, Blockchain has shown capable abilities to transform and improve the way businesses conduct their day-to-day activities. That’s precisely why many businesses are willingly accepting Blockchain technology to improve their customers' experience and ensure operational productivity. We hope these trends give you a better understanding of the developments going on in the Blockchain industry on top of informing you about its highly sought-after use cases. If you are a business owner and still haven't incorporated Blockchain into your business, it's high time you take the initiative and adopt this technology before your competitors leave you behind. This is where we can help.

Here at IIInigence, we stand proud as the best Blockchain Development agency in the USA, offering a wide range of services, including Blockchain consultancy as well as cryptocurrency, smart contract, dApp, Decentralized Marketplace, and Metaverse development. We have been into Blockchain development for 10 years, and we have successfully completed several massive projects in diverse sectors, including insurance, real estate, gaming, etc. You can check out our portfolio and testimonials to get a better idea of our expertise as well as the quality of our work. Simply contact us today, and schedule a call with one of our experts to discuss the possible use cases of Blockchain technology within your industry and see how we can help you adopt this innovative technology.