Key Predictions For Blockchain in 2022

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2021 brought many surprises to the blockchain community, thanks to NFTs, the metaverse, and rising crypto projects! 2022 is expected to be full of new updates and will bring many new contributions to our ecosystem.

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Less Volatility: Smaller Returns for Crypto

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Cryptocurrencies have brought significant average returns in the past decade and are now well known to the public. This prevalence in the marketplace is likely to reduce returns over time, providing a bit less volatility, but also less risk in the long run. With an approximate global market cap of 1.97 trillion, tokens are now well covered by mainstream media, and the majority of retail investors have shown some form of interest in digital assets. This new era is a great opportunity for investors with a smaller tolerance to risk, where Crypto ETFs provide a greater margin of safety for crypto enthusiasts.

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NFTs will Explode

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After a record breaking-year in 2021, NFTs will surely undergo exponential growth through 2022. With a growing demand from consumers, corporations have now leveraged the power of NFTs to build a loyal following around their brand. Major companies like Adidas, Louis Vuitton, Gucci, Coca-Cola, and McDonald’s took part in this movement by providing marketing incentives to their consumers. Thanks to the concept of Augmented NFTs, digital assets will now possess tangible utility in the Metaverse, where users will be able to use, showcase, and trade those assets in real-time. NFTs have proven through 2021 that they can hold real value and added utility beyond proof of ownership. This rising supply of Non-Fungible Tokens will be an inherent part of the metaverse, allowing individuals to share unique social experiences.

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Decentralized Apps are Here to Stay

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Decentralized Apps, also referred to as Dapps, are emerging through our ecosystem, providing real sustainable value to consumers. With an emphasis on decentralization, these applications are reinventing the meaning of ownership, opening new doors to developers, and industry stakeholders. Projects like Polkadot, Solana, and Polygon have gained enough attention and proved to be more than legitimate in the marketplace. Their presence will create a path for new projects to emerge, bringing additional value to our ecosystem. Dapps are expected to play a larger role this year, as cryptocurrencies are now established in the marketplace.

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DAOs will be Regulated

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Decentralized Autonomous Organizations (DAOs), favor decentralized governance where each and every stakeholder can participate in the decision-making process of the organization in accordance with their ownership, or rights. This new form of governance allows transparent and functional entities through alternative voting power. While showing many benefits for our ecosystem, DAOs are likely to undergo some form of regulation to guarantee and ensure the safety of all stakeholders. Such a type of governance is still in its infancy, and many changes and amendments should be conducted to bring this form of governance to maturity. Nonetheless, DAOs remain the future of our ecosystem, and should be regulated with industry stakeholders to provide value to all community members.

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Metaverse for Corporations

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The Metaverse is not only limited to gaming and NFTs and will provide many opportunities for corporations. Entertainment will likely remain a large portion of the ecosystem but will be shared with other fields. Companies like Meta Platforms and Microsoft are planning to make major contributions in Corporate Blockchain, with an aim to connect co-workers, resulting in exponential productivity. The recent Pandemic highlighted a need for corporations to communicate remotely, and more technologies will emerge to address this problem.

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More CBDC Trials to Come

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Central Banks conducted many trials for Central Bank Digital Currencies and showed great potential for our ecosystem. A great example would include the Project Jura, involving trials between Digital Euros and Swiss Francs. The head of innovation at the Bank for International Settlements (BIS) declared:

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“Project Jura confirms that a well-designed wholesale CBDC can play a critical role as a safe and neutral settlement asset for international financial transactions.”

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Many more trials are expected to be conducted in 2022, reinforcing the need to implement CBDCs for safer and faster transactions. Modern Banking needs innovation and will be reformed in the next decade. Governmental entities are actively trying to provide reliable financial alternatives to build the Finance of tomorrow.

‍Gain access to recurrent updates to help you develop an understanding of the blockchain technology in a practical setting! Should you be interested in NFTs, be sure to check out the Paris NFT Day, and our article on the Metaverse!

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