Blockchain, which was once merely a bold experiment, has now evolved into a breakthrough technology that is constantly evolving. Blockchain has the potential to disrupt practically every business as it improves the security, transparency, trust, and traceability of shared data.
Financial, supply chain, logistics, automotive, health care, retail and consumer products, and government are some of these industries. Although most of us are familiar with blockchain technology because of cryptocurrencies, this is only one of its applications. Blockchain technology has so much more to offer.
So, in this article, we’ll explain what blockchain is, what blockchain developers do, and what the top blockchain technology developments to watch in 2022 are.
What Exactly Is Blockchain Technology?
Blockchain is a distributed, unchangeable ledger that simplifies the process of recording transactions and tracking assets in a business network. Because blockchain decreases associated costs and risks, it may be used to track, record, and sell virtually anything of value.
The term “blockchain” refers to a chain made up of data blocks. When new data is added to the network on a regular basis, a new data block is formed and added to the chain.
And it is because of the manner in which these new nodes or blocks are formed that blockchain is seen as highly secure.
You may wonder why.
Before new data can be added to the ledger, the majority of nodes must check and certify its legitimacy. Cryptography is used to secure each transaction on the blockchain (a method to protect information and communication from unauthorized access using encryption codes).
Blockchain technology is useful for sectors that require the date and value of a transaction to be securely recorded.
Aside from that, blockchain can be used for procedures that entail tracking data transfer between different parties, such as logistics, trading, and supply chain management.
With its instantaneous, transparent, distributed and unchangeable ledger that can only be accessed by authorized network users, blockchain is suitable for information delivery. A blockchain network allows you to track production, payments, orders, accounts, and many other things.
What Is the Role of a Blockchain Developer?
A blockchain developer is someone who is in charge of creating and optimizing blockchain protocols, architecture, smart contracts, and web apps using blockchain technology.
There are two categories of blockchain developers:
– Core Banking Developers — These individuals are in charge of blockchain architecture and protocol development.
– Blockchain Software Developers – They design decentralized apps using architecture and protocols developed by core banking developers.
Simply defined, a blockchain developer is in charge of inventing protocols, creating network architecture for decentralizing or centralizing data, creating back-ends and front-ends, and creating and monitoring smart contracts.
They want to come up with innovative solutions to difficult challenges. As a blockchain developer, you must also undertake the design, programming, complicated analysis, testing, and debugging of blockchain-based applications.
Top Blockchain Technology Trends
Now that we’ve covered the fundamentals of blockchain, let’s get to the meat of the matter: the top trends in blockchain technology. Here is a list of the top blockchain trends to watch in 2022, so let’s get started.
ERC, or Ethereum Request For Comments, is a document created by smart contract programmers on the Ethereum network. The ERC whitepaper specifies the regulations that Ethereum tokens must follow.
ERCs are Ethereum application-level specifications like name registries, token standards, and library/package formats. ERC standards define a collection of functions that must be present in a token type in order for smart contracts and applications to interface with tokens.
ERC-20 (standard fungible token), ERC 721 (standard non-fungible token), ERC 223 (Protecting users from Accidental Contract Transfer), ERC 777 (Operator Based Token Standard), ERC 1155 (Multi-Token Standard), and ERC 1337 are some of the most popular ERC tokens (Recurring Subscription Standard).
ERC Tokens have been a popular trend in blockchain technology because they provide pre-written standardized for Ethereum-based applications and smart contracts. They make the process easier for developers because they don’t have to write these standards themselves.
Ethereum is an open-source and decentralized blockchain platform. It is used to design an alternative protocol for developing decentralized apps, providing a distinct set of trade-offs that is extremely beneficial for large decentralized systems.
Etherium’s focus remains on circumstances where security, rapid development time, and successful interaction across diverse applications are critical.
Ethereum, with its built-in automata programming language, enables anyone to create applications and smart contracts. Simply said, Ethereum allows a developer to declare the function of transition and construct their own transaction forms as well as arbitrary ownership rules.
Because of its universality, simplicity, agility, modularity, non-discrimination, and non-censorship, Ethereum has become a trend in blockchain technology.
NFTs, or Non-Fungible Tokens, are tokens that indicate ownership of one-of-a-kind objects. Non-fungible is an economic word that refers to things such as arts, music files, or collectibles that are not interchangeable with others due to their distinct features.
As a result, NFTs allow us to tokenize these objects and provide security via the Ethereum blockchain while only permitting one official owner at a time.
Because everything has gone digital, there is a growing demand to recreate physical object qualities such as uniqueness, ownership evidence, and scarcity. Simply put, an NFT can be created from a single copy of a digital item and then sold, bought, or collected. It is vital to highlight that NFTs cannot be copied, and as the name implies, an NFT must be unique.
An NFT might be anything from GIFs to video clips, pieces of art to collectibles, concert tickets to a social media post. Needless to say, NFTs have grown in popularity in blockchain technology, since they are changing our view of digital work rights.
Blockchain-as-a-Service, often known as BaaS, is a cloud service that is used to build and execute smart contracts and decentralized applications in blockchain technology. BaaS is based on the software-as-a-service model and functions similarly.
The emergence of BaaS represents tremendous progress and is an important milestone in the blockchain ecosystem, as it will expedite the adoption of blockchain technology across organizations.
BaaS is a third-party cloud-based infrastructure that allows developers to effortlessly design, operate, and administer blockchain-based applications. BaaS also makes back-end operations for the blockchain platform easier. Microsoft, Amazon, PayStand, and R3 are some of the key companies in BaaS.
Stablecoins are non-volatile cryptocurrencies. They share many similarities with Ethereum (ETH), but have a more stable value, similar to existing currencies. Stablecoins are designed to be tied to fiat currency or cryptocurrency or to function as exchange-traded commodities.
Stablecoins are a mix of fiat currency and cryptocurrencies that provide the advantages of both real and digital assets. The value of a stablecoin is fixed at a 1:1 ratio to traditional currencies such as euros, rupees, or dollars.
Furthermore, Stablecoins can be supported by commodities such as oil, metal, or gold. Stablecoins will be a prominent trend in the blockchain industry since they are always expanding and, unlike other cryptos, do not crash frequently.
Decentralized Finance (DeFi)
Decentralized Finance (DeFi) is a cryptocurrency-based open alternative to established financial systems such as exchanges and banks. DeFi is a mechanism for making financial goods available on a public decentralized blockchain network.
DeFi, in particular, refers to a system in which blockchain software allows sellers, lenders, purchasers, and borrowers to speak with one another or with a completely software-based middleman rather than an institution or firm facilitating those transactions.
DeFi platforms, which have the potential to beat banks in insurance, loans, and currency exchanges, have become a trend in the blockchain business. Another reason for DeFi’s appeal is the opportunity it provides for users to engage with one another without the need for intermediaries to demand their shares.
Central Bank Digital Currency (CBDC)
CBDC, or Central Bank Digital Money, is a virtual fiat currency type created for a certain region or nation. It is a digital token of the official currency that is powered by blockchain but is issued and regulated by monetary authorities.
In India, for example, the government has submitted legislation to create its own digital currency, while the Central Bank of Nigeria is planning to establish a CBDC trial on the Hyperledger Fabric blockchain.
Other countries, like Thailand, England, China, Sweden, Canada, and Uruguay, are interested in experimenting with CBDC, making it an essential trend in the blockchain market.
Verifiable Credential (VC)
A verifiable credential is a piece of information that a third party can digitally confirm. A virtual credential (VC) can represent the same information as a real credential.
Someone’s identity information is kept on a public blockchain and can be securely exchanged with the desired individual via cryptographic keys. A verifiable credential may comprise information such as identifying the individual, issuing authority, credential type, credential limits, and more.
With the use of technology such as digital signatures, VC becomes more tamper-evident and dependable than its physical counterpart. It enables a person to share their verifiable credentials while maintaining their anonymity. Because a user can revoke credentials at any moment, no firm or institution can keep or manage information centrally with VC, making it a significant trend in the blockchain industry.
Self Sovereign Identity (SSI)
Self-Sovereign Identity (SSI) refers to digital identities that are managed decentralized. The public identifiers of identification in SSI are recorded in the blockchain and are managed by many independent servers that safeguard persons from tampering.
SSI enables users to self-manage their digital identities without relying on a third-party supplier. With SSI, it is simple to create confidence in interactions by presenting credentials to other parties, who can then verify whether the credentials originated from a trusted issuer or not.
Hybrid blockchain combines the advantages of both private and public blockchains. With hybrid blockchain, one can use a public blockchain to make the ledger visible to the public and a private blockchain running in the background to control access to changes in the ledger.
A hybrid blockchain can aid with smart contracts, auditability, and improved efficiency while also offering transactions for increased verifiability and transparency. The hybrid blockchain member has control over who can participate in the blockchain and which transactions are made public.
Blockchain Technology Is the Future
Based on these top blockchain trends, it is easy to predict that the future year, 2022, will be a crucial moment for the adoption of blockchain in numerous sectors.
As a developer, it is critical that you understand these trends in blockchain technology and prepare yourself for the changes. Furthermore, mastering some of these trends will help you advance your career as a blockchain engineer.
Source: Simple Programmer
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