Blockchain is a fast-moving and dynamic technology. What once underpinned bitcoin has now become a standalone solution in its own right. It is widely used throughout countless sectors, including payments, gambling, logistics, and travel. But what are the key blockchain concepts for the year ahead?
Blockchain and IoT
One of the most exciting blockchain concepts of 2022 is the convergence between blockchain and the internet of things. The two technologies are highly compatible, and each technology can solve problems the other faces. From scalability to facilitating machine-to-machine transactions and micropayments, the possibilities are endless. It might take some time for the full potential to trickle down to everyday users, but this will start next year. We expect to see many more pilot projects and proposals fuelled by the 5G rollout and increasing connectivity.
A non-fungible token, or NFT for short, is a unit of data that is entirely unique and cannot be interchanged. It is stored on the blockchain and is particularly useful in providing proof of ownership. This blockchain concept is often used for holding digital files such as photos, audio files, or 3D models. What sets NFTs apart from other kinds of tokens, such as cryptocurrencies, is that they are not interchangeable or fungible. They were a big deal in blockchain in 2021, particularly in the art and music world. But in 2022, we expect to see their use cases expand. Already, NFTs are used to verify the authenticity of whiskey, Nike, and Dolce & Gabbana.
More widespread adoption
In 2021, the adoption of cryptocurrency and blockchain concepts came on leaps and bounds. More businesses and individuals have embraced both technologies than ever before, and there is no reason why this will not continue. As eCommerce and online entertainment continue to thrive, there will be more room for alternative payment methods such as cryptocurrency. This, as well as more offline uses as crypto continues to be accepted in brick-and-mortar locations, will drive forward mainstream adoption. Furthermore, regular people are becoming more familiar with blockchain and cryptocurrency due to media and social media exposure.
Blockchain has received criticism for not being the most environmentally friendly technology. As it uses a lot of energy and is responsible for a significant level of carbon emissions, this is concerning in a world focused on reaching carbon zero. In the last year, some big names that have been using crypto stepped back over ecological concerns. But in 2022, we will most likely see sincere attempts to improve the eco-credentials of blockchain concepts and crypto. This can be done in various ways, including carbon offsetting, the use of proof-of-stake, and the use of renewable energy to run the technology. If blockchain continues its development, it needs to find a greener way of doing so.
In 2021, we saw Bitcoin become legal tender in El Salvador, and other countries move towards their own centralised cryptocurrency. According to some, more developing countries will adopt cryptocurrency as a form of legal tender or create a national equivalent. This becomes especially more likely in the context of rising global inflation. Countries including China, the US, Sweden, Japan, and Singapore create their own digital currency. In 2022, we will see countries launching their own cryptocurrencies and blockchain concepts, with more announcing plans to do so.
Over the last 24 years, we have seen the business world go through many changes. Furthermore, we have followed the evolution of blockchain to where it is today. This means our team is perfectly equipped to work with blockchain startups and entrepreneurs or those looking to integrate blockchain solutions. Fast Offshore cannot design a blockchain for you, but we can create the corporate structures you need to succeed. We offer company incorporation, structuring, payments, and compliance. In addition, we can take care of all ongoing obligations as well. For further information or to discuss your plans with the professionals, contact Fast Offshore today.
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