Whether you’ve just joined or you’ve been in the cryptocurrency world for quite some time now, you have probably heard of the term blockchain.
This technology plays a huge role in how cryptocurrency works and accounts forthe difference between traditional currencies and this fully digital and non-physical currency. Cryptocurrencies are known to be decentralised, which means it is not in any way affiliated with third-party agents like the government or banks, so all the transactions in crypto are stored in this public ledger: Blockchain. Read on to know experts’ predictions regarding the future of Blockchain.
Understanding Blockchain
The technology behind blockchains is the foundation of trading cryptocurrencies such as Bitcoin and Ethereum. This constantly developing public ledger technology allows crypto traders and investors to access the blockchain. In simpler terms, a blockchain is the method of storing data of transactions in a manner that makes it complicated or impossible to change, hack or cheat the system.
Blockchain technology has constantly evolved and has been widely adopted where it is now used in the different sectors of businesses. Every business is looking for ways to take advantage of the decentralised structure and characteristics that ensure safe and private transaction processing. Looking back, blockchain has made an impact on the different industries, so it’s pretty exciting to think of what else it can do in the future.
While blockchain technology plays a crucial part in securing cryptocurrencies, it has no impact on the safety of crypto traders. The reason is that most trading occurs off-chain, usually through cryptocurrency exchanges or brokers. Sometimes it’s difficult to know which company is trustworthy, especially if they don’t provide proof of their licence. This issue is so pervasive that it has given rise to platforms such as Immediate Edge that exist solely to match traders with regulated brokers. Even so, you should be careful with any transactions that aren’t taking place on the blockchain.
Blockchain Predictions
The potential for blockchain technology to deliver the much-needed change in industries has been predicted by experts since 2011. However, over the years, the concept and its impact started to capture businesses’ attention. Thanks to the increase in the price of Bitcoin, which is the first example of blockchain technology, hype grew around encrypted and distributed ledgers in the different sectors. To know more, check out these blockchain predictions:
1. Blockchain will be the most in-demand skill
Experts predict that this year 2022, there will be greater demand for crypto and blockchain skills. The increasing popularity of cryptocurrencies, the potential growth in the blockchain industry and the growing acceptance of blockchain in various sectors all contribute to a higher demand for blockchain and crypto skills. Blockchain now reached the point where large corporations are starting to understand its terms and impact on improving people’s lives by yielding efficient organisations.
2. More countries will legalise cryptocurrency
El Salvador was the first country to legalise cryptocurrency in 2021, and experts predict that more countries will start to adopt it this 2022. Developing countries are expected to embrace cryptocurrency first, given the global inflation, and rising costs brought about by the middlemen financial institutions that facilitate the funds earned by foreign workers.
3. Save the planet with greener blockchain
With the environmental issues that are happening now, blockchains are often criticised as one of the main culprits due to their huge energy demands needed to maintain security. Due to these allegations, Elon Musk mentioned he changed his viewpoint on Bitcoin automobile payments in January 2021. With this, experts predict that huge efforts to turn blockchain technology more green and offset its carbon footprint throughout 2022 are possible.
4. NFT will continue growing
As things go from physical to digital, experts see the continuous growth of the NFT market. The NFT marketplace provides users with eligibility to assert their property rights over a digital asset. While NFT was more affiliated with art, it’s predicted that the NFT 2.0 model will be more about gaming, social sharing, utility, and earning access to exclusive communities. However, the risks that these non-fungible tokens face will need regulatory intervention.
5. Governments will embrace blockchain
Blockchain has proven its efficiency by allowing governments to conduct their business more effectively. As the government continue to recognise the potential of blockchain technology in terms of efficiency and public trust, governments may embrace it and take advantage of its numerous possibilities. Throughout the years, some country governments have been experimenting with blockchain in various activities, and it is expected that more will do so.
Conclusion
The world of technology and cryptocurrency is constantly evolving, and with the possibility of various factors entering the picture, we don’t know exactly what will happen in the next years. However, with all these unpredictable events, one thing’s for sure: the future is blockchain. This technology will positively impact how we do things, and it’s time to start thinking about incorporating this technology into your business model.