From the rise in blockchain applications to using NFTs and increasing business models, 2022 is marked as a potential year for blockchain technology. Although the year was no less than a battle for crypto holders, it still held a remarkable increase in the blockchain world.
Putting aside the crypto gains and losses, 2022 was filled with blockchain trends and new improvements in the decentralized network. Whereas some analysts predict the blockchain healthcare industry will rise to $5.61 billion by 2025.
However, the digital world seems promising and uncertain about what will happen in the future. Would the blockchain market level up from its previous records or further bottom out in 2023? Let’s have a detailed discussion in this article below.
Blockchain Evolution: A Look Back at 2022
At the end of 2021, we saw major changes in the infrastructure of blockchain, including the multibillion-euro investment plan by European Unions. As soon as blockchain technologies entered the first half of 2022, the crypto market faced a sudden crash of 50% – their all-time down in the history so far.
Did the crypto industry come out from this crisis in the next half of 2022? How did other blockchain models evolve under such conditions? Continue reading to get highlights of the blockchain evolution and some top blockchain trends in 2022.
1- Upscaling of the Lightning Network
Blockchain technology runs on three major principles of scalability, efficiency, and transparency. Therefore, a lightning network was introduced into the bitcoin framework to further strengthen its security and micropayments. No doubt, 2022 remained the best year for managing this transaction mechanism and making the lightning network faster. Enlisted below are some developments that show massive growth of the lightning network in 2022:
- In 2022, the liquidity increased from 1,058 BTC to 4,771 BTC.
- The number of lightning channels increased by 80% from previous years.
- In 2022 alone, there was a 88% increase in the total number of lightning nodes, from 8,295 to 15,636.
2- The Rise of W2E NFT
The concept of wear-to-earn NFTs has recently been added to the digital fashion world and taken a progressive shift in 2022 with new W2E projects coming in blockchain technology. In the first half of the year, the total NFT sales increased dramatically, with almost 7,447,473 sales in the market.
Moreover, the total trading volume of the non-fungible tokens also increased to 13.25% in the two-quarter halves of 2022. That brings a number of high-dollar sales in the world of the W2E NFT marketplace. The best point was more fashion brands started introducing their virtual garments through augmented reality. Popular brands include Nike, Adidas, Burberry, Gucci,and similar other fashion brands in the commercial market.
3- US Regulations
In 2022, there has been a great beginning for the US regulations related to the use of crypto assets. As per the US improvised rules and regulations, the government has now allowed the residents to not only invest in crypto but also permitted the banks to sell and accept these digital currencies as means of payment.
Due to this upgrade, blockchain technology gained more popularity with increased usage all over the world. Besides this, here are some other US crypto regulations that are implemented until 2024:
- Customer Verification
Prior to the US regulatory act, there was no identity verification rule for crypto holders. But, the US Financial Crimes Enforcement Network made it compulsory to identify your customer ID before making any investments in blockchain technology.
- AML Regulations
Whether investing in fiat currency or cryptocurrency, you will face security risks on all virtual platforms – specifically crypto money laundering. According to a recent survey, there has been a 30% increase in money laundering cases in the last year, with 8.8 billion dollars of money being laundered by cybercriminals.
To cope with such criminal activities, the FATF (Financial Action Task Force) has legislated updated AML (Anti-Money Laundering) regulations for crypto firms. These regulations not only handle crypto scandals but also improve customers’ trust.
4- Ethereum 2.0
To upgrade the blockchain consensus mechanism from proof-of-work to proof-of-stake infrastructure, the Ethereum merge was introduced on September 6, 2022. The much-awaited Ethereum merge is finally at its completion now, even though it has been working under blockchain technology.
You might be wondering why a new software upgrade was needed in the form of this newly updated merge. Well, the plan behind its launch was to speed up traditional transactions and make the platform more sustainable.
Blockchain Technology and a Glimpse into 2023
Till now, you have seen the major upgrades and changes that happened in 2022. Some of which proved exceptional for the blockchain industry, and some caused major disruptions.
Leaving all that behind, the incoming year of 2023 holds a lot more for the blockchain market. What would be the future of this digital world, and what do experts predict? Let’s have a quick look below.
1- Blockchain and Web 3.0
One of the major upgrades would be the rise of web 3.0 technology into the world of blockchain. In just 2022, 65% of all web developers joined the community. This shows the rapid growth rate of this highly advanced web 3.0 internet technology.
With its increasing use and hype over the internet, Web 3.0 is going to be a new innovation for future technology. There is no doubt that Web 3.0 has provided great accessibility to its users. In 2023, it will further strengthen the technical world by enabling apps, websites, and other browsing services to open conveniently and make them easily clickable.
Not only this, with the help of Web 3.0 internet access, you will be able to customise the websites and different software to fit into your mobile or android screen. In addition, it also eases internet users by enabling websites and different applications to run their data smoothly and more meaningfully. So, users can get the search results immediately.
2- Blockchain and NFT Marketplace
Generally, an NFT project is a unique collection of non-fungible tokens stored in blockchain technology. Unlike a simple NFT, these NFT projects in 2023 will be produced on a large scale and thus hold more significant potential in the investment industry.
With every passing minute, the number of NFT users is skyrocketing. According to non-fungible.com, thousands of NFT sales are made each day and currently range from 15,000 to 50,000 per week. In blockchain technology, NFTs will play a major role in revolutionising the world of gaming and the tech industry in the upcoming years.
3- Ethereum Merge
As discussed above, the newly introduced Ethereum merge will bring record-high changes in the world of digital assets. Here is what you’ll get with this Ethereum merge mechanism:
- It will reduce the transaction fee and make payments quicker.
- The proof-of-stake mechanism will be converted into the proof-of-work consensus mechanism.
- It will consume less energy and make the system more eco-friendly.
To sum it all up, no one can accurately predict what will happen in the upcoming days, especially in the digital world. The blockchain industry is constantly changing and evolving into new forms, with more developments every year. Therefore, you should always have 5% crypto assets in your portfolio and not solely depend on your crypto investments.