New blockchain technology trends
Checkout new blockchain technology trends in 2022 below.
Since the inception of Bitcoin, the Proof-of-Work (PoW) consensus mechanism has been the fundamental basis for network security. The necessary conditions were achieved at the expense of computing power. With the growing popularity of cryptocurrencies, the energy consumption of digital networks has increased. The University of Cambridge estimates that around 130 TWh per year is spent on BTC mining in 2022. This represents 0.1% of the world’s electricity consumption.
Transactions in the Ethereum network also cause great damage to the environment. In 2022, it is the largest PoW ecosystem with thousands of dApp projects of various sizes. A transaction on the Ethereum blockchain consumes 238 kWh, which is equivalent to the consumption of energy by one person in developing countries in 20 days. The network consumes about 87 TWh per year.
However, the true cost of dApp operations is much higher. For example, the life cycle of an NFT is not limited to minting and selling an asset. There will be many more transactions between investors and traders. As a result, the carbon footprint of each NFT will be about 2.38 MWh (almost 1477 kg CO2). A citizen of a developed country consumes the same amount per month.
In 2022, developers are focusing on less power-intensive network models. Some projects may move to the Proof-of-Stake (PoS) algorithm . In this mechanism, not computing power is used to confirm blocks, but staking coins provided by validators. In particular, Ethereum plans to complete the transition to PoS before the end of the year. Other successful examples of the implementation of the algorithm:
- Binance Smart Chain.
Emergence of New NFT Strategies
Specifically, non-fungible tokens have been one of the drivers of the cryptocurrency market in 2021. In spite of this, ever since digital artist, Beeple sold a collage of images for $69 million. Furthermore, the world hasn’t stopped talking about NFTs. Moreover, Tokenized art sells at auctions for a huge amount of money, and developers offer new ways to use the technology.
In addition, many famous musicians have released tracks as NFTs (Grimes, Snoop Dogg, Lindsay Lohan). moreover, Quentin Tarantino auctioned off 7 tokenized scenes from Pulp Fiction. The first of these, Royale with Cheese, was sold in early 2022 for $1.1 million.
However, the potential of NFTs goes far beyond the original strategies. For example, William Grant and Son sold 46-year-old Glenfiddich whiskey with a digital token to identify each bottle. Yet, Fashion brands Nike, Dolce & Gabbana have created virtual shoes and clothes in the form of NFTs.
In 2022, the Play-to-Earn gaming direction continues to develop. In popular blockchain games (Ember Sword, Crabada), users can mint characters and equipment. Moreover, digital items are used to upgrade accounts and are sold on marketplaces. In addition, it is worth waiting for the emergence of new use cases for NFTs in the metaverse .
Blockchain integration with the Internet of things
Here, the decentralized technology is compatible with the IoT concept. Furthermore, blockchain is great for capturing interactions between machines. In addition, this integration will solve the IoT’s security and scalability issues with an encrypted and immutable data ledger.
Blockchain can be used for machine-to-machine transactions, allowing one device to buy the service of another through cryptocurrency micropayments. On the hand, the synergy of NFT and the Internet of Things will be able to connect reality and the metaverse, offering ownership of physical assets.
On the other hand, innovation in this area is linked to the ongoing rollout of 5G networks. The table shows examples of blockchain and IoT integration in 2022.
|PROJECT||SCOPE OF APPLICATION||WHAT DO THEY DO|
|Filament!||Software development||They are creating a software and hardware complex that will allow any connected devices to take advantage of blockchain technology. Encryption of financial documents is available in the current implementation.|
|HYPR||cyber security||They use decentralized solutions to protect devices from hacking. Make IoT projects invisible to hackers.|
|Xage Security||cyber security||Create a comprehensive blockchain platform for IoT. The service is able to manage billions of devices in logistics, energy, industrial production.|
Growth of the Metaverses
Accordingly, for years, virtual worlds were only available in science fiction novels. Blockchain has turned the concept of the metaverse into a reality. In the virtual world, users can interact with each other, create objects and landscapes using digital avatars.
The most popular projects in 2022 attract a huge audience of users. Moreover, settlements within the platforms are carried out in native cryptocurrencies. Here, the table shows the largest metaverse tokens by capitalization in June 2022.
Blockchain opens up great opportunities for the development of metaverses:
- Provides transparency and seamless access to virtual worlds.
- Creates management privileges for users.
- Provides a verifiable origin of the property.
- Links the platform economy with the cryptocurrency market.
Accordingly, the largest technology companies are showing an active interest in the concept of metaverses. Facebook, Microsoft, Epic Game, and other giants are developing their projects. According to experts, in 2022 the metaverse is still far from becoming a fully functional digital parallel of the real world. However, it already has promising applications that are popular.
Distribution and tracking of vaccines
In a word, In 2022, the delivery of medicines to remote regions remains a priority. In spite of, blockchain technology can offer several ways to distribute and track vaccines:
- First, verifies the authenticity of shipments to prevent the sale of counterfeit drugs.
- Controls transportation to designated locations.
- Provides security at every point in the supply chain.
Moreover, one of the leaders in the application of digital solutions for working with vaccines is IBM. Accordingly, in 2022, the company will coordinate the interaction between healthcare authorities and organizations responsible for the distribution of drugs. The Blockchain-based system combines documented vaccination data from various platforms.
The pilot project demonstrated the potential of decentralized technology for rapid drug identification and product recall. In addition, such attachments would be useful in identifying a batch of vaccines that causes an unreasonably high percentage of side effects.
In a brief, in 2022, blockchain will be in use in many areas: economy, healthcare, automotive industry, and others. Also, as digital projects prove their usefulness, new solutions emerge to facilitate technology adoption. To push the blockchain to ubiquity. Thus, it is necessary to solve current problems – reduce energy consumption, create regulations, improve usability for developers. It must be admitted that this technology is still at an early stage of development. And the market is just beginning to approach a state where the blockchain will become necessary for everyone