What’s in store for blockchain technology for the year 2022? Over the past few years, blockchain technology‘s applications across different industries were sort of like a crazy roller coaster ride. Certain applications and use cases caught on the market like a forest fire. At the same time, many use cases failed miserably simply because some founders wanted to ride blockchain’s hype to attract investors and in the process, compromised on the technology-product fit.
Out-of-the-box fundraising mechanisms like ICO & STO, Decentralised finance applications, Non-Fungible Tokens, etc caught the market attention and put the blockchain domain on steroids.
The driving force was primarily from the finance sector in the initial years, and sooner a wide range of industries started embracing the technology. Today, Blockchain technology plays a pivotal role in shaping the new digital paradigm that involves enhanced automation coupled with the amalgamation of the physical and the virtual worlds with AI and robotics.
Mass adoption of blockchain decentralized apps is inevitable and simply a matter of time. Forbes’ analysis on blockchain reveals that it will reach a whopping $11.7 billion in business expenditures by 2022. It also revealed the emphasis on greenifying the blockchain through carbon offsetting and minimal energy-intensive models of blockchain technology. Extensive changes are happening in the NFT space as well.
In this article, we’ll explore How to approach blockchain app development in 2022.
Given the market conditions, we can expect a few use cases of blockchain technology to go prominent over 2022. For example, the disruptions caused in the global supply chains on account of the pandemic have initiated the need of implementing blockchain-based supply-chain traceability solutions to the fore. The same applies to high-value retail, art and collectibles, and food products that can be effectively tracked and made secure with the help of blockchain-based traceability solutions.
In the retail sector, a jump can be expected in the implementation of crypto payment solutions and crypto loyalty programs as the demand for crypto-friendly retail is increasing across global markets. Blockchain technology will likely play a crucial role in the equitable distribution of vaccines, as it offers more traceability and transparency on how the vaccines are distributed. The technology possesses the ability to iron out the logistical transparency issues, also significantly enhance the validation process.
Developers can take a breath of relief from the fact that more and more government agencies are integrating blockchain into their processes, especially concerning certificate management. Not only will the agencies be able to manage their citizen’s data in a better way, but they will also benefit from the use of sophisticated encryption technology that uses two-factor authentication.
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The landscape of blockchain development has abruptly changed over the past few years. With the entrance of several new blockchains, some of them, like Solana had really good market acceptance, and with the entrance of Blockchain-as-a-service providers, the go-to-market options have widened.
Blockchain-as-a-Service a.k.a BaaS is based on the software as a service (SaaS) model, but for building blockchain-based applications. It allows entrepreneurs to use cloud-based solutions to build, host, and operate their dApps. The BaaS space has improved a lot over the past year, providing more options and flexibility for entrepreneurs and developers to launch and host blockchain applications.
With the entrance of tech giants, the BaaS space has amplified its offerings. Microsoft, along with ConsenSys introduced Ethereum blockchain-as-a-service on Microsoft Azure and Amazon, which has introduced Amazon Managed Blockchain. R3, a consortium of global financial institutions that produced a distributed financial ledger called Corda.
If you are planning to launch a blockchain application, make sure to consult with a blockchain development company to do a feasibility study for using BaaS for your business requirements.
If you are launching a blockchain application, you should spend some effort on its interoperability architecture. The ability to see, access, and share information across multiple blockchains or blockchain networks is becoming more essential.
Recently Cosmos blockchain has rolled out the Inter Blockchain Communication protocol. A similar protocol has also been launched by Polkadot. These protocols facilitate inter-blockchain communication.
If you are launching a new blockchain network, emphasize defining the interoperability protocols with prominent blockchain networks like Ethereum, Polygon, etc.
Decentralized Finance or DeFi applications have been greatly accepted in the market in the past couple of years. However, the market adoption of DeFi is not as prominent as compared to the market adoption of cryptocurrencies or other products of blockchain technology. A major reason for this hindered growth is the user-friendliness in the adoption DeFi applications. DeFi 2.0 is a movement trying to solve the problems and make the DeFi products more accessible.
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DeFi 2.0 offers many additional flexibilities, for example, in yield farming liquidity pool tokens can generate APY for its users and at the same time unlock new value opportunities. By reducing the complexity to understand and access DeFi tools and products, DeFi 2.0 practices and protocols can give a boost to the DeFi space in 2022.
Simply put, the concept of a wrapped token is that — a particular crypto token is wrapped by another crypto token so that it can be used in a non-native blockchain network. If someone wants to use crypto in a different blockchain network, they can do so by wrapping it with a token that works in the target blockchain. For example, if you want to use BTC in the Ethereum network, you can wrap the bitcoin to create a new type of token (WBTC) with ERC standard and use this token in the Ethereum network.
The major flaw in wrapping tokens is the requirement of a trusted custodian and the gas fees associated with the wrapping and unwrapping process. With further developments in this area, we can expect more appealing versions of wrapped tokens to go mainstream in 2022.
Read more on: Wrapped Tokens: How does it work?
Some 87 countries globally are seriously exploring the implementation of a central bank digital currency. Seven countries have already launched a CBDC and another seventeen, including some major economies, are running pilot projects as a possible precursor to a full launch.
The above provides the broad directions in which one can expect blockchain app development to move in 2022. Watch out for how things unfold going forward. We sure are in for exciting times ahead.