Blockchain Trends and Uses to Know in 2022
We know that blockchain is the innovative technology that powers cryptocurrencies and applications. It’s an exciting groundbreaking technology with worldwide spending on blockchain solutions projected to reach 19 billion dollars by 2024, up from 950 million in 2017(1).
Blockchain technology is a reliable way to store information on a database without relying on central entities and institutions, like regulators and accounting firms. Furthermore, blockchain provides a straightforward way for parties to trust one another.
Blockchain trends
Here are some exciting blockchain trends that can impact our lives and help shape integration trends, shape future architectures and research directions:
Blockchain-supported social media networks
New possibilities for decentralized trust in social networks exist thanks to blockchain tech. The technology works alongside social media and solves social media challenges like user identity, verified vendors and marketplace verification.
Blockchain in retail logistics and the global supply chain
Blockchain in the worldwide supply chain market is expected to increase exponentially and rapidly. It will improve business for stakeholders with enhanced traceability, enabling digitization. International supply chain management success centers on controlling four flows: product, process, information and cash.
Blockchain solves supply chain challenges with event tracking, cargo integrity assurance, dispute resolution, compliance, digitalization, trust enablement and securing the chain of custody. An irreversible, comprehensive audit trail with blockchain increases the confidence of product authenticity and quality.
Green energy models
We will likely see efforts to “green” blockchain since it uses significant compute power and creates high levels of carbon emissions. A shift to lower energy-intensive blockchain technology models and renewable energy will enable the blockchain industry to be green. Tax incentives and legal regulations play an integral role in creating renewable energy alternatives.
NFT’s art and copyright protection
Awareness of non-fungible tokens (NFTs) rose dramatically over the last couple of years, most notably due to NFTs in digital content transactions. These transactions include artwork that often sells for exorbitant amounts. NFTs were big news in the blockchain world in 2021 when music artists like Kings of Leon released music in NFT format.
NFTs are created for many types of content, like digital art, physical art connected to the digital token, videos, and memes. Open marketplaces enable NFT trading associated with any object or kind of work. Yet, NFT’s rapid growth magnifies copyright enforcement challenges.
National cryptocurrencies
This year we will see central banks create their own coins so users can conduct transactions and manage custody while maintaining control of the circulating supply. National cryptocurrencies will see growth in 2022 that will operate alongside traditional currencies.
The UK is due to release a government-backed Britcoin in the next couple of years, and other nations are expected to do so, like Japan, Russia, Sweden and Estonia. Some countries already have launched their own, including Singapore, China, Tunisia and Ecuador.
Blockchain: Beyond Crypto
Blockchain’s societal benefits
Blockchain goes beyond cryptocurrency in several ways:
Immutability and trust — Blockchain technology is trustworthy because the data it contains is unchangeable; no person nor company should be able to change or alter transaction history
Banking and payments — Looped in with immutability and trust, blockchain’s decentralized ledger technology provides a secure peer-to-peer mechanism for authenticating information
Emerging economies — developing countries are learning a widening array of blockchain applications, including innovative uses in banking and financial services, supply chains, agriculture and land titling in countries like India, Kenya, and other East African nations.
In eastern Africa, for example, blockchain’s application in lending benefits small businesses that don’t have a solid record of business ownership and operations or conventional credit histories. In 2018, vendors in a Nairobi, Kenya microfinance project helped build credit as they repaid micro-loans, then became eligible for larger ones(2).
Pharmaceutical applications benefit society, too, from monitoring the storage temperature of medicines and ensuring timely delivery. In pharmaceutical applications, sensors ensure storage temperatures of delivery trucks and deliveries are paid for if the drugs are delivered on time if the supply chain is logged in the blockchain(2).
Blockchain uses
Blockchain’s business benefits include payments and trust, just like they benefit society. Consider the following use cases and benefits of blockchain:
Internet of Things (IoT)
The IoT industry grows exponentially with billions of connected devices. Some estimates claim there will be 50 billion devices in use globally by 2030 (5). As numbers grow, so do vulnerabilities, as hackers can easily breach data through a single connected device. Integrating blockchain technology into IoT devices reduces the possibility of data breaches.
Cybersecurity — one of the examples of next-level cybersecurity is with smartphones. Using a highly secure FIDO token is the secret behind accurate passwordless authentication; decentralized credential solutions and biometric authentication make IoT devices almost tamper-proof.
Marketing — blockchain creates a sea change for marketers by transforming customer targeting, tracking customer data, and securing consumer information.
Applications for energy, transportation and manufacturing — Blockchain-based cybersecurity platforms for energy, transportation, manufacturing, etc., have billions of devices connected simultaneously. Blockchain extends zero trust identity, data security and local/remote access for physical and digital operations in OT, IT and the cloud.
Cryptography — blockchain technology applies to cryptographic keys to ensure users’ security, confidentiality, and privacy and their shared data. There are two types of keys, public and private, and each user has one of each.
The public key is the address or its hashed (shortened) version. A user can only access their wallet — a public key — and move cryptocurrency with a private key. The public and the private key combination creates that individual’s digital signature, thus allowing them to perform transactions on a blockchain. The digital signature distinguishes a user in the network and adds an additional layer of security to protect the data.
Smart contracts — Smart contracts blockchain-based contracts in real-time. These contracts are agreements between two or more parties without an intermediary; the contract exists across a decentralized and distributed blockchain network. Smart contracts are now basic in healthcare, real estate and government agencies.
Healthcare — Big Data-based smart contracts facilitate the transfer of sensitive medical data between patients and doctors. The contracts specify outlines and parameters for data sharing; they contain personalized health plans and other important information for individual patients.
Real estate — real estate platforms can use blockchain-based title registries that automate transactions for brokers, realtors and their clients. Blockchain technology makes title issuance instantaneous and allows for buying and selling properties with cryptocurrency.
Retail — online retailers often face several challenges in the payment process involved with ecommerce. For example, there’s the “abandoned cart” issue and consumer distrust over data security (consider all the data breaches in the news). Blockchain technology may be the innovation online retailers need.
Money transfer
Payment processing and money transfers are the best blockchain technology use cases; blockchain tech enables high-speed, real-time transactions. The BFSI sector is eternally transformed since it saves time and lowers costs by eliminating bank/financial institution transaction fees.
FinTech — fintech platforms, such as those who help people run and establish internet businesses, may offer several cryptocurrencies (Ethereum, Bitcoin, Monero, etc.) to process billions in cryptocurrency investments and exchanges.
FinTech/Cybersecurity — some platforms deliver blockchain data and analysis to entities like financial institutions and currency exchanges.
Use case: Therapoid
About Open Therapeutics™
Biotechnology firm Open Therapeutics™ is dedicated to global, open-source pharmaceutical research by crowdsourcing scientists. According to its LinkedIn page, it’s “an agnostic web portal service aimed at reducing the cost and risks of developing and deploying therapeutics” to enhance the availability of affordable lifesaving medications to underserved populations.
The mission
Societal impact
Medical device, diagnostic and pharmaceutical costs are thought to be out of range for many, especially in developing countries with underserved populations. Open Therapeutics’ offers an interdisciplinary open approach parallel to the profit-driven model, not a replacement. The multidisciplinary approach brings the public, students, scientists, clinicians and citizen scientists together to positively impact research.
Project: The Therapoid platform
To promote its mission of facilitating therapeutic (pharma, medical devices, and diagnostics) developments, Open Therapeutics™ needed a robust open platform for STEM researchers globally to collaborate on research. Scientists would be awarded ScienceCoins (a cryptocurrency) as a reward based on activities on the Therapoid platform.
For this project, the following aspects of scope needed to be considered:
• Build a collaboration platform for researchers
• Identification of blockchain
• Issue tokens to users
• Integration with user wallets
• In the future, the ability to trade ScienceCoins with other FIAT or Cryptocurrencies
The project included building the platform, a public blockchain, the underlying architecture to award cryptocurrency and the APIs to integrate ScienceCoins into Therapoid.
According to Open Therapeutic’s website:
Therapoid is an “open science platform that gives students and researchers free tools, intellectual properties, services and awards ScienceCoins tokens (similar to cryptocurrency) for research and development that advances scientific knowledge.
It’s important to note that Therapoid is not limited to the research community; as a matter of fact, for-profit businesses are welcome to join Therapoid too.
Business benefits
Therapoid delivers value to Open Therapeutics™ with:
· Identifying mechanisms to reduce gas fees (4) incurred for Ethereum blockchain transactions
· Security architecture on the smart contracts to prevent ScienceCoins loss, including:
· Integrating pre-print server capability for scientists to obtain feedback before publication
· Ensuring ADA compliance
· Identifying a better discussion forum
Value to the research community
To help create positive health and environmental outcomes worldwide, Therapoid’s collaborative environment lowers costs of research and development (R & D) and reduces risks. COVID-19 treatments and vaccines are excellent examples of open science.
The Therapoid platform enables researchers to governmental, business, institutional, nonprofit and public recognitions; this recognition leads to speaking engagements, employment, consulting and promotion opportunities.
Therapoid freely offers:
· Grants
· Equipment
· Intellectual properties
· A manuscripts server
· Career opportunities
· Discussion forums
· ScienceCoins tokens
ScienceCoins
ScienceCoins (similar to cryptocurrency) are especially helpful to economically challenged students and researchers who collaborate. ScienceCoins can be converted in cryptocurrency exchanges to purchase books, pay for open access charges (APC), journal subscriptions, consumables, and pay a colleague to translate papers.
Conclusion
Blockchain has definite benefits in that it removes the human factor in transaction processing, recording and management. In eliminating human involvement and relying on the computing power of millions of networks, blockchain’s information accuracy continues to improve.
Once the blocks in a chain are confirmed and linked, the information contained within is immutable; this permanence of the data prevents fraud; trust is no longer fleeting nor variable. Blockchain’s nature as a ledger keeps permanent, immutable and verifiable transactions, thereby making the trust of other parties redundant.
Blockchain’s immutability makes it an attractive option for a number of industries and has multiple applications — and it’s only the beginning.
Sources:
1 Global spending on blockchain solutions forecast to be nearly $19 billion in 2024, according to new IDC spending guide. IDC. (2021, April 19). Retrieved March 8, 2022, from https://www.idc.com/getdoc.jsp?containerId=prUS47617821
2 AfricaGlobal FocusIndiaNorth America. (2018, November 28). How the blockchain brings social benefits to emerging economies. Knowledge@Wharton. Retrieved March 8, 2022, from https://knowledge.wharton.upenn.edu/article/blockchain-brings-social-benefits-emerging-economies/
3 Open Therapeutics. (2022). A revolutionary open science platform! Therapoid. Retrieved March 8, 2022, from https://therapoid.net/
4 Gas fees measure exactly how much computational power any given transaction requires before it can be recorded on a blockchain network
5 Vailshery, L. S. (2021, January 22). Number of connected devices worldwide 2030. Statista. Retrieved March 14, 2022, from https://www.statista.com/statistics/802690/worldwide-connected-devices-by-access-technology/
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