In 2022, we’ll likely see an increased focus on alleviating that problem, especially through the implementation of more eco-friendly algorithms like Proof of Stake. Specifically, protocols that rely on Proof of Work, as by design, this consensus algorithm requires validators to perform a lot of computational work. One of the prevailing criticisms towards blockchain technology has been related to its environmental impact that comes as a result of the large consumption of energy that some of today’s most popular blockchain protocols require. One of LimeChain’s clients, MatraDAO is also a strong believer in the multichain approach.Īn increased focus on multichain support would accelerate the development of interoperability solutions such as blockchain bridges. Some prominent dApps such as DeFi giant Aave have already gone multichain. With competition from promising Layer 1 protocols like Solana, BSC and Avalanche likely to increase in the future, it’s to be expected that more dApps would go the multichain route. The success of Pancakeswap on Binance Smart Chain last year showed that while Ethereum is the undisputed leader in the space, it’s not the only game in town.Īs we mentioned above, the dominance of Ethereum has not gone unchallenged. This year we’re also likely to see an increased presence of DeFi products on chains other than Ethereum. We are also likely to see the first serious attempts to advance the sector beyond its self-contained bubble and make it more connected to the broader economy. In 2022 this trend is likely to continue, with technology improvements enabling developers to come up with new products and better liquidity models. While there is a debate on whether the DeFi 2.0 moniker is justified, it is, nevertheless, indicative of the ongoing evolution of the DeFi space and the technology behind decentralized finance. The latter part of the year saw the emergence of the ‘DeFi 2.0’ narrative, which was driven by the rising popularity of a new wave of products, such as Olympus DAO, Rari and Tokemak. The DeFi space continued to grow in 2021, with major players stepping up their game by refining their tech and utilizing scaling solutions to improve efficiency. In order for NFTs to succeed in gaming, the technology needs to produce something more than just a new type of collectibles. So far, NFTs’ foray into traditional gaming has been met with significant backlash from gamers, which is frankly hardly surprising given how rushed those initial attempts to implement the technology felt. The second factor we need to consider is gaming. A growing Metaverse can accommodate for a wide range of NFTs – from cosmetic items and mementoes to virtual property, digital passes and so on. The first one is the growing prominence of the Metaverse, which already challenges how we perceive ownership of digital assets, and promises to give us new ways to share and enjoy virtual experiences. We see two catalysts for a potential shift towards utility. And while art-focused projects are going nowhere, 2022 is also likely to bring an increased emphasis on utility, which would further boost the appeal of NFTs. In 2022, we anticipate that the market will continue to grow, as developers continue to advance the technology forward. The massive success that NFT projects enjoyed in 2021 gave us a taste of the great potential of non fungible tokens. So what about 2022? Here are the blockchain trends that we are likely to see this year. Twenty-twenty-one was the year of the NFT boom, of DeFi maturation and Layer 2 expansion. Meanwhile, Ethereum continued its transition to Proof of Stake and implemented important changes to its gas fee mechanism. A host of promising Layer 1 protocols, such as Solana, Avalanche, Polkadot and Hedera Hashgraph, burst onto the scene to claim their place into the spotlight. Major cryptocurrencies like Bitcoin and Ethereum soared to all-time highs, pushing the market past the $2 trillion mark for the first time ever. The blockchain and crypto sector enjoyed one of its strongest years on record in 2021.
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