Blockchain technology has been around for more than a decade, but it’s just now reaching the tipping point in terms of both technological advancements and widespread adoption.
Several blockchain industry trends will be critical to watch in the coming years as this technology reaches its full potential and continues to disrupt traditional business models across multiple industries.
Here are the top five blockchain industry trends you need to know about in 2022, as compiled by experts in the field.
1) The emergence of private chains
In the past few years, we’ve seen the rise of private blockchain development companies in India. These companies are developing permissioned blockchains that are tailored to specific use cases. In 2022, we expect to see more private chains emerge as businesses look to streamline their operations and reduce costs.
For example, Walmart is partnering with IBM to create a blockchain network for food supply chain management. They want to improve food safety and prevent contamination across various vendors.
As these projects increase, so will the demand for talent. That’s why leading IT firms like Infosys have started hiring blockchain developers in India. However, there’s still a shortage of qualified engineers in the country.
The industry estimates that only about 5,000 software engineers and programmers specialize in blockchain technology globally (about half of which live in the U.S.). We predict this number will grow to over 10,000 by 2022.
2) Cryptocurrency mass adoption
In 2022, we predict cryptocurrency will see mass adoption as more people invest in digital assets. The increasing trust drives this trend in cryptocurrencies and the decreasing trust in traditional fiat currencies.
In addition, the rise of blockchain development companies is helping to drive this trend forward. If you’re looking to get involved in the cryptocurrency space, be sure to hire blockchain developers in India to help you with your project.
A blockchain development company has the necessary resources to develop a robust product and can provide valuable insight into what will work best for your business. We believe that a partnership between the two parties will create an opportunity for success shortly.
3) Increasing demand for data privacy
In a world where data breaches are becoming more and more common, people are becoming more aware of the importance of data privacy. As a result, we expect to see an increase in the demand for data privacy in the blockchain industry.
The increased demand for data privacy may be seen in other industries, such as the banking industry, which is already gearing up to protect its customers from identity theft by issuing new credit cards with chips that generate a unique code every time they’re used.
We predict this trend will continue into 2022 when companies start offering biometric security and blockchain technology products. It’s not just the industry that will benefit from this trend; consumers will also need it.
People don’t have to worry about forgetting passwords or losing access to their accounts if something goes wrong because these accounts can be restored using fingerprints or voice recordings.
4) Deployment of smart contracts will boom
As the industry grows and more people become aware of blockchain technology, the demand for smart contracts will increase. This is because smart contracts offer a secure and efficient way to exchange information or conduct transactions.
In addition, they can be used to create decentralized applications (dapps). As a result, we expect to see a boom in the deployment of smart contracts in 2022.
We’ve already seen some dapps emerge, such as Cryptokitties. This game was built on smart contracts and allowed users to own, trade, and breed digital cats.
The way it worked was simple. The creator of a cat programmed certain traits into its code, for example, whether or not it would be born with a gene for white fur or if it could fly.
5) The rise of tokenization and security tokens
In the past year, we’ve seen a rise in the tokenization of assets and the creation of security tokens. Tokenization is converting an asset, such as real estate or art, into a digital token that can be traded on a blockchain.
This process allows for fractional ownership of assets and makes it easier to trade them on a secondary market. Security tokens are digital tokens that represent an investment contract and are subject to federal securities regulations.
The tokens typically have rights similar to traditional stocks or shares, including voting rights and dividends. The difference between the two is that security tokens do not offer any stake in company operations; instead, they give you access to capital projects (e.g., initial coin offerings).
For example, a venture capitalist might want to invest in multiple start-ups by buying equity in each company. But with security tokens, he could invest with just one of these companies and still get all the benefits.
The blockchain industry is constantly evolving, and it can be hard to keep up with the latest trends. But to stay ahead of the curve, it’s important to know what’s happening.
This blog discussed the 5 blockchain industry trends you need to know about in 2022. Make sure you don’t miss out on any point.