Fintech 2022 Trends: Future of Cryptocurrency and Blockchain
Cryptocurrency and the blockchain are revolutionizing the fintech industry. We are going to talk about the trends that will shape these fields in 2022.
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Without a doubt, blockchain is one of the most transformative technologies in the world right now. Even though it has been popularized through the success of Bitcoin, we all know by now that there is much more to this new technology. The online community and the proliferation of new data on the subject of blockchain and cryptocurrencies have demystified these concepts to the general public, while the experts in the field are already aware that blockchain is going to continue to rise exponentially in the years to come.
In 2022 and beyond, we can expect blockchain to go far beyond Bitcoin and cryptocurrencies in general, and gain massive support in the nonprofit sector, fintech solutions in general, talent procurement, green transformation, and more. There’s no denying that the future is very bright for blockchain and cryptocurrency investments as well, and it's important for aspiring and established leaders in the sector to stay on top of the latest trends.
Today, we are going to talk about the trends that will shape the blockchain and crypto fields in 2022 and the years to come, allowing you to spot lucrative opportunities and ensure long-term success. Whether you’re a business leader or if you’re looking to kick-start a career in these sectors, here’s the information you need.
The Rise of Nonprofit Blockchain
There are many sectors and industries around the world where investors and developers can utilize the power of the blockchain to make a difference. One of these is, of course, the nonprofit sector, in which nonprofits that are accepting cryptocurrency donations can establish a secure way to get more donations while appealing to a younger generation of supporters.
Given the fact that cryptocurrencies are becoming increasingly popular among millennials and Gen Zers, accepting cryptocurrency donations in the nonprofit field is a viable way to expand and grow the organization. Because the blockchain transactions are secure and final, nonprofits are able to improve their cash influx while ensuring the data security and anonymity of their supporters.
On the other hand, given the fact that blockchain transactions avoid transaction fees and all the bureaucratic steps (sending money through a bank, withdrawing from a bank, converting it into local currency), there is no loss of value with each donation. If a backer donates $100 in cryptocurrency, the organization or the final recipient will receive that same amount.
This is why blockchain technology is transforming the nonprofit sector.
More Investments in Altcoins
While Bitcoin is definitely the most popular cryptocurrency in the world, and while the real value of using cryptocurrencies goes far beyond the monetary gains, it’s important to note that other cryptos and investments in innovative ICOs are on the rise. This should come as no surprise, as other cryptocurrencies such as Ethereum and Maker have achieved great success and have risen in value in 2021 alongside Bitcoin.
In 2022, aspiring investors and business leaders looking to invest in fintech startups within the blockchain space will continue to support rising cryptocurrencies but also invest in innovative ICOs. Following some of the key lessons from successful fintech founders, it’s important for investors to focus on delivering scalable solutions and a niche product that is specifically optimized for a core target demographic.
What’s more, given the fact that governments around the world are increasingly investing in their own cryptocurrencies, this opens yet another door for investors and startups to acquire government contracts within the crypto space.
Putting Emphasis on Blockchain Security
As you already know, the blockchain is a distributed, encrypted database model that is constantly being monitored and reviewed by a network of users around the world, making it extremely difficult to hack into. All transactions are anonymous and the data is never stored in a centralized location. Instead, the data is decentralized and spread across a network of computers to ensure security and minimize data leaks.
Still, this doesn’t mean that investing in blockchain security is not important. In fact, it is one of the imperatives for the industry moving forward. Developers transitioning to the blockchain system from cloud computing, for example, will need to invest in blockchain pretesting.
These developers can use similar basic principles that they learned in an AWS essential guide for pretesting to probe the blockchain system for code errors and identify and catalog potential security loopholes. This will become a necessary process in blockchain startups and will also give rise to blockchain security experts in 2022 and beyond.
Higher Demand for Blockchain Developers
Speaking of developers, it should go without saying that the rapid expansion of the blockchain industry and market has led to a rise in the demand for blockchain developers. The good news about this is that being a blockchain developer is a coveted position in the industry, and according to the latest blockchain developer salary data, these ex-pats earn between $125,000 and $175,000 in the United States.
The fact that blockchain developers are becoming so highly sought after in this space creates a highly-competitive playing field. There are numerous reasons why companies are hiring dedicated developers nowadays, and aspiring developers can expect the average earnings to rise in the years to come due to the higher demand for top-quality talent. This is coupled with the fact that startups are heavily focused on talent retention.
That said, we are yet to see if the influx of new developer talent will bring median salaries down, should the supply of talent manage to overtake the demand for highly-skilled developers. This is something we are yet to see throughout 2022.
Green Blockchain Is on the Rise
By now, everyone in the blockchain sector knows that this technology and its applications pose a great risk for the environment. The blockchain can consume vast amounts of energy and create high levels of carbon emissions — something that investors, business leaders, and consumers are not at all happy about.
This is why we can expect green transformation projects and initiatives to start booming across the blockchain sector in 2022 in an attempt to create a greener blockchain system. This will also help the brand-building process for new startups in the field, and it can be done via carbon offsetting, less energy-intensive models like “proof-of-stake” algorithms, and of course, investments in renewable energy.
That said, it’s important to note that the big problem remains: cryptocurrencies and blockchain, in general, are resource-intensive. There doesn’t seem to be a clear way forward for minimizing the energy consumption in this sector, and none of the possible solutions above are tackling the core energy challenges of running blockchains.
More Countries Adopting Bitcoin and Other Cryptocurrencies
In 2022 and the years to come, we can expect more countries to start developing their national cryptocurrencies using the right software development methodologies, but also to start accepting the existing cryptocurrencies on a national scale. Everyone in the industry knows that in 2021, El Salvador became one of the first countries in the world to accept Bitcoin. This means that people in El Salvador can pay for goods and services in Bitcoin, which is an unprecedented step towards currency and payment digitization on a national scale.
Throughout 2022, we can expect many more countries to follow in El Salvador’s footsteps, but we can also expect national banks to start creating their own cryptocurrencies. This is a natural step forward for the banking industry, as we can use blockchain and cryptocurrencies to improve the banking system as a whole.
Over to You
Cryptos and blockchain are on the rise across the globe, and in 2022, we are going to see a massive expansion in these key areas. Not only are more countries going to finally start adopting cryptocurrencies and even develop their own cryptos, but the blockchain model as a whole is going to benefit from more green and nonprofit innovation while pushing for more secure fintech solutions as well.
All of this goes to show the power and potential that cryptos and the blockchain have to transform the digital world, which is why you should look to capitalize on these opportunities.
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