The 5 Biggest Blockchain Trends In 2022
Blockchain is one of the most exciting tech trends at the moment. It is a distributed, encrypted database model that has the potential to solve many problems around online trust and security. Many people know it as the technology that underpins Bitcoin and cryptocurrencies in general. However, its potential uses are far broader, encompassing digital “smart” contracts, logistics and supply chain provenance and security, and protection against identity theft. There are countless others – blockchain evangelists say it can potentially be used to improve security and integrity in any system that involves multiple parties sharing access to a database.
During 2022, spending on blockchain solutions by businesses is forecast to hit $11.7 billion. Here are some of the trends that will be driving this and some thoughts on how this will impact more and more lives over the course of the next year.
Green blockchain initiatives
Blockchains can potentially use a lot of energy and create high levels of carbon emissions – this fact was behind Tesla CEO Elon Musk’s decision to temporarily stop accepting Bitcoin in payment for his cars earlier in 2021. For this very good reason, during 2022, we are likely to see a great deal of emphasis on attempts to “greenify” blockchain. There are a few ways this can be done, including carbon offsetting, although many people consider that this often equates to simply patching up a wound that shouldn’t have been caused in the first place. Another is by moving to less energy-intensive models of blockchain technology – typically those that rely on “proof-of-stake” algorithms rather than “proof-of-work” to generate consensus. Ethereum – the second best-known blockchain after Bitcoin – plans to move to a POS model during 2022. Another route to a greener operating model is the one championed by Cathy Wood, CEO of tech-focused hedge fund Ark Invest. This posits the view that growing demand for energy will lead to greater investments into generating renewable energy, which will then be used for other applications as well as operating blockchains.