5 TRENDS ON BLOCKCHAIN & CRYPTO IN 2022: ALL YOU NEED TO KNOW
The invention of Blockchain technology has shown great impact on the domain of digital transactions of currencies called Cryptocurrencies and is predicted to grow more by multiple billions shortly to come. This technology not only creates a new path of economic development in the world but also gives much higher security over the vulnerabilities of data breaches for many organizations. Blockchain technology is completely decentralized, well encrypted, and comprises multiple nodes that make it impossible for any hackers to hack into the system. Thus for many reasons blockchain is on the trend and so let’s try to look at some of the 5 trends of Blockchain & Crypto in 2022!
- Crypto may grow exponentially
Since 2020, Cryptocurrencies like bitcoin have shown a tremendous rise in the market, and as per the recent prediction from some experts, the bitcoin price will rise to over $100,000 per bitcoin in the coming years. As of 2022 March, 11 per bitcoin is 38,802.90USD.
The recent Covid pandemic might have been the reason for a sudden drive in crypto like Bitcoin for many investors in the market as the pandemic has caused lots of losses to many sectors. For the Investor or Businessmen, the intervention of the Government adds another burden, thus the Crypto and Blockchain eliminate this external factor as it is completely decentralized with no intervention from another source. Also, as the protocols of Covid are implemented in a different parts of the world, payment or transactions using cryptocurrencies could prevail.
2. The blockchain market will exponentially grow globally
With almost everything going digital in this modernized world there is a huge spike in interest in implementing Blockchain technology by various sectors across the Glode. Many Businesses or companies are opting for this technology for getting better output as it has shown great deals in security and efficiency. As per the recent data from Google, the Blockchain market size globally was predicted to go up from USD 3.0 billion USD in 2020 to 39.7 billion USD by 2025 which is a great spike in the market. What’s more exciting is that by the end of 2021, about 25 percent of the Forbes Global 2000 started implementing Blockchain technology.
3. DLT dominating by Non-bank financial companies (NBFCs)
One of the less talked about or discussed trends we are about to see during 2022 and in the year to come is the growth of NBFCs using the Cryptocurrencies based banking system. With Crypto, institutions will not require to go through the hassle process of getting a Bank license or other documentation works. This will not only increase the growth of different organizations but also drive as many customers into using the online mode of transactions and other financial services through Blockchain. With Crypto and blockchain, there are options for non-bank services for many and will completely decentralize the Banking Financial system.
4. Upcoming trends on DEFI
DEFI or so-called Financial service is an alternative to doing business or doing financial transactions through applications that runs over the Blockchain system. DEFI could directly remove the intervention of Banks, brokers, etc from doing any business or financial contracts with various clients. This implementation is a smart contract for financial services, for instance, you can create a contract with someone else who will pay you one bitcoin if he loses the bet, and you pay him 1 bitcoin if you lose.
According to certain data on the internet, the DEFI services is growing impressively and have claimed to even cross worth USD 10 billion in the past year and is growing rapidly in 2022 with more spike expected in the future.
5. Retaining of Private Blockchain
Last but not least trend you should know about the Blockchain is that the privatization of Blockchain will be more dominant and private blockchain will fill up a maximum of the Global Blockchain market and will continue to be the largest this year. Private Blockchains are more beneficial when it comes to dealing with B2B as they are capable of delivering better efficiency, security, Data protection, reliability, and more. The best part is the security provided to the private blockchain in the form of a private key which will be authorized and provided only to the owner of any Organization.
These are some of the TRENDS ON BLOCKCHAIN & CRYPTO IN 2022 you may see but it does not end this way. With the rise of digital financial banking using Blockchain technology, the Government is inevitably going to implement and execute certain rules and regulations with a strict approach toward Fintech. The only reason why the Government is procrastinating on the implementation of rules and regulations over Fintech is due to the ongoing catastrophe caused by Covid. Nevertheless Crypto and Blockchain Technology will revolutionalize the world we see today in the coming future.