Computers and Technology

Top 10 Blockchain Trends To Get Ahead of the Curve in 2022

Blockchain technology has advanced rapidly since its debut in 2009, even making its way into mainstream media and many business leaders’ and entrepreneurs’ vernacular. 

However, there are still many myths and misunderstandings surrounding blockchain technology and its potential benefits, which could hold businesses back from adopting it sooner rather than later. 

To help you get ahead of the curve, we expect to see ten major blockchain trends in 2022—and how they’ll affect business both now and in the future.

Top 10 Blockchain Trends to Look Out For in 2022

1) ICOs Are No Longer Mainstream

A year ago, ICOs were all over Twitter, Telegram, and mainstream news. Nowadays, they’re nowhere to be seen as token sales are finding it harder and harder to get funding. 

For example, in 2017, Bancor raised $153 million in three hours; since then, its market cap has dropped significantly. 

This demonstrates that investors are no longer interested in token generation events, which doesn’t bode well for most companies who sell tokens as part of their business model. Blockchain development companies in India or around the globe should take note of these trends before planning any new projects.

2) Regulations Around ICOs Will Increase

Many governments worldwide are looking to create and enforce regulations regarding initial coin offerings (ICOs). 

India is already taking steps toward creating rules that would require ICOs to register with regulators, and China has banned ICOs altogether. 

You can’t afford to have a blockchain development team if you want your company to survive into 2022. 

If you have a blockchain development team, they must keep up with trends in blockchain technology and regulation.

3) Cryptocurrency Payments Will Become Mainstream

Businesses are beginning to accept cryptocurrency as a payment method almost everywhere you look. It’s not hard to see why. Crypto payments offer instant transfers and significantly lower transaction fees than credit card companies. 

As cryptocurrencies continue to become more stable and trustworthy, expect more businesses around you to begin accepting them—even if they are starting with a single digital currency, like Bitcoin or Ethereum. 

If your business could benefit from being able to process cryptocurrency transactions, consider investing in a crypto-friendly point-of-sale system now before it becomes too late.

4) Hybrid Protocol Tokens Will Emerge

Right now, there’s a lot of money in blockchain technology. It seems like every company is adding Blockchain to its name to attract investors and bring in cash. 

This leads to a massive inflow of capital into blockchain businesses, but it also means that many companies are deploying more capital than they can use efficiently. 

To combat these problems, hybrid protocols will emerge. These protocols will link existing blockchains to one another. They’ll be able to send tokens from Ethereum smart contracts to Bitcoin addresses without requiring any action on behalf of users. 

They’ll let blockchain startups spend their money more effectively while increasing overall liquidity in cryptocurrency markets. 

5) There’ll be a Rapid Rise in The Number of Cloned Projects

Many experts predict that Blockchain, as a technology, will revolutionize virtually every industry. This will lead to more startups and organizations creating their blockchains with different rules and functions. 

The process will become much easier thanks to blockchain application development software coming out in 2019-2022. 

While most businesses are still trying to figure out what blockchains can do for them in general, it won’t be long before they start creating their own from scratch.

However, it’s not all good news – there are bound to be a lot of failed projects along the way. Still, some people have already managed to get ahead of things by creating clones (often called forks) of existing blockchain projects. 

6) Smart Contracts Will Lose Their luster

We already have issues with smart contracts that have been deployed in 2017 and early 2018. Bugs, un-audited code, and issues with token price fluctuations mean that most blockchain developers are wary of developing smart contracts.

As more time passes, there will be less interest in them. Exchanges won’t want to hire blockchain developers to build smart contracts; they’ll want to use an existing solution, which means they’ll need fewer blockchain developers on staff. 

And customers? They’ll find it easier to buy tokens directly from ICOs than through a centralized exchange. This will reduce the demand for blockchain developers as well.

7) Scalability Issues will Continue to Plague Blockchains

Scalability issues are a major issue in blockchain technology, especially with cryptocurrency blockchains that need to handle transaction loads on an industrial scale. 

These issues will plague blockchains through at least 2022. Many businesses that hire blockchain developers will be stuck waiting for solutions as they look to implement blockchain technologies into their operations. 

If you can’t provide your customers with scalability, there are likely others who can—and if you’re unable to meet customer needs, your business could quickly go under.

8) Better Architecture Solutions

Blockchain has evolved from a niche, experimental technology to a revolutionary concept poised to change every aspect of our lives in recent years. 

As more developers incorporate Blockchain into their projects, more architectural solutions will be proposed that take full advantage of its unique features. 

9) Alternative Consensus Algorithms Will Emerge

Bitcoin and other cryptocurrencies use Proof-of-Work (PoW) to create consensus—but PoW isn’t perfect. In fact, it comes with several problems. 

Most notably, it is slow and costly. As a result, many alternative consensus algorithms are being created and tested in anticipation of their widespread adoption in a few years. 

These new algorithms will be faster and cheaper than PoW, meaning that they will be more scalable. 

Some notable examples include Proof-of-Stake (PoS), Delegated Byzantine Fault Tolerance (dBFT), and Practical Byzantine Fault Tolerance (PBFT).

10) Increased Government Regulation Will Spur Development

The blockchain space is a regulatory Wild West. According to Jeremy Allaire, founder, and CEO of Circle, which offers digital payment solutions to facilitate transactions between fiat currencies and cryptocurrencies, regulation will spur development.

Recently, two members of Congress introduced legislation that would establish a framework for state regulation of virtual currency businesses at both the federal and state levels.

Read Also: 10 Facts You Should Know About Block Chain

Conclusion

So these were the top blockchain trends to look out for in 2022. The blockchain ecosystem is still in its infancy, but it’s already becoming clear that we’re about to see some serious developments. 

Blockchain developers are out there (and you can even hire blockchain developers in India if you need to), so keep an eye on what’s happening with projects like Ethereum and Hyperedge. 

The future is here, and things will only get more interesting from here on out.

Blockchain technology is just one-way startups will be able to make money off emerging technologies—think self-driving cars or robots taking over our jobs. It’s not too late for your business—but it might be soon if you don’t start getting ready now!

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