Blockchain, once just a brave experiment, currently has turned into revolutionary technology that continues to grow. As blockchains improve the security, transparency, trust, and traceability of shared data, it has the potential to disturb almost every industry.
Some of these industries include finance, supply chains, logistics, automotive, health care, retail and consumer goods, and the government. Even though most of us know Blockchain technology because of cryptocurrency, it’s just one of its implementations. Blockchain has so much to offer.
So in this article, I will offer the Blockchain basics, what is done by Blockchain developers, and what is the top trend in blockchain technology to watch in 2022.
What is Blockchain technology?
Blockchain is a distributed and eternal ledger that facilitates the process of recording transactions and asset tracking in business networks. Almost everything that is valuable can be tracked, recorded, and traded using Blockchain because it reduces the costs and risks related.
The term “Blockchain” refers to a chain consisting of data blocks. When new data is added to the network regularly, the new data block is created and added to the chain. And the way this new node or block is made is the reason why Blockchain is considered very safe.
Blockchain is ideal to provide information immediately, transparently, distributed and changed so that it can only be accessed by authorized users of the network. With blockchain networks, you can keep track of production, payments, orders, accounts, and so much more.
What do Blockchain Developers Do?
A developer who is responsible for the development and optimization of blockchain protocols, architecture, intelligent contracts, and web applications using the technology is the developer blockchain. Blockchain developers are categorized into two types:
Banking core developers- They are responsible for blockchain architecture and protocol development.
Blockchain Software Developer- They are using architectures and protocols developed by the core banking developers to build decentralized applications.
Simply put, the developer is responsible for designing blockchain protocol, developing a network architecture that will be used for decentralization or centralization of data, developing back-ends and front ends, and developing intelligent and observable contracts.
They aim to develop creative solutions to challenging problems. As developers, we must also do the design, development, complex analysis, testing and debugging of software running on blockchain technology.
Top Trends in Technology Blockchain
blockchain 2022 Now that we have a basic understanding of blockchain, let’s move to the important part: the top trends in blockchain technology. Here is a list of top trends blockchain to be followed in 2022, so let’s get into it.
ERC Token
ERC or Ethereum Request For Comments is a document written by the programmer Ethereum platform using an intelligent contract. The ERC document provides rules that Ethereum tokens must comply with.
ERC is a specification for Ethereum application level, such as the registrant name, standard tokens, and format library / package. ERC standard outlines a set of functions required for the type of token that enables intelligent contracts and applications to communicate with a token.
Some token ERC popular are ERC-20 (standard mark equivalent), ERC (token standard non-equivalent) 721, ERC 223 (Protecting users from Accidental Transfer of Contract), ERC 777 (Operator-Based Token Standard), ERC 1155 (Multi-Token Standard), and ERC 1337 (Recurring Subscription Standard).
Token ERC has become a trend in the technology blockchain, because they offer a standardized pre-written for intelligent applications and contracts Ethereum built using the platform. They simplify the process for developers, because they do not have to write this standard alone.
Ethereum
Ethereum is a platform based on the open-source blockchain and decentralization. It is used to create a replacement protocol for developing decentralized applications, offering a different set of trade-offs that are very useful for large decentralized applications.
Etherium emphasis remains on a situation in which security, fast development time, and effective interaction between different applications is very important.
With Blockchain having the default Automata programming language, Ethereum allows anyone to write smart applications and contracts. Simply put, Ethereum allows developers to declare the transition function and make their transaction format and arbitrary ownership rules.
Ethereum has become a trend in blockchain technology because of universality, simplicity, agility, modularity, non-discrimination, and non-sensors.
NFTs
NFTs or non-fungible tokens are tokens that represent the ownership of unique items. Non-fungible is an economic term that describes products such as art, song files, or colors that cannot be exchanged with others because of their unique nature. So, NFTS allows us to strengthen these items and provide security by Ethereum Blockchain while allowing one official owner at a time.
Blockchain-as-A-Service (BAAS)
Blockchain-as-A-Service or Baas is a cloud service used to design and execute intelligent contracts and decentralization applications in Blockchain technology. Baas was built as a model-as-service model and worked too.
The emergence of BAA means significant progress and is an important milestone in the Blockchain landscape because it will accelerate the adoption of blockchain technology throughout the business.
In simple terms, BAA refers to third party cloud-based infrastructure that will help developers to build, operate, and manage blockchain-based applications easily. Baas also facilitates back-end operations for the Blockchain platform. Some important players in Baas are Microsoft, Amazon, Paystand, and R3.
Stablecoins.
Stablecoin is Cryptocurrency that is not fluctuating. They have many similarities with Ethereum (ETH) but with stable values ??similar to traditional currencies. Stablecoin is intended to be pegged as fiat or cryptocurrency money or to work as a commodity traded exchange.
Stablecoins is a fiat and cryptocurrency hybrid that offers the benefits of real and digital assets. Stablecoin values ??are pegged at a ratio of 1: 1 for traditional currencies such as euros, rupees, or dollars.
In addition, Stablecoins can also be supported by commodities such as oil, metal, or gold. Because Stablecoins grew continuously and, unlike other Crypto, don’t often fall, they will be a popular trend in the Blockchain room.
Finance decentralization (defi)
Financial Decentralization (DEFI) is an open alternative for traditional financial systems such as exchange and bank through Cryptocurrency. Defi is a system that provides financial products on the Blockchain network that is decentralized publicly.
In particular, defi refers to the system where blockchain software makes it worthy of sellers, lenders, buyers, and borrowers to communicate colleagues to peers or with stiff software-based intermediaries, not institutions or companies that facilitate these transactions.
With the potential to outperform banks in insurance, loans, and currency exchange, the DEFI platform has become a trend in the Blockchain industry. Another reason behind defi’s popularity is the ability to offer to users to interact with each other without intermediaries demanding their shares.
Digital Currency Central Bank (CBDC)
The central bank’s digital or CBDC currency is a virtual fiat currency format designed for certain regions or nations. This is a digital token of official currencies powered by Blockchain but is issued and governed by monetary authorities. For example, in India, the government has introduced a bill to begin its digital currency, while the Central Bank of Nigeria proposes to launch the CBDC pilot on the Blockchain of Hyperledger Cloth.
Verified credentials (VC)
The 2022 Blockchain trend of verification credentials is part of the information that can be validated by a digital third party. VC can represent the same information as physical credentials.
One’s identity information is stored in a public blockchain and can be shared safely with the desired person with a cryptographic key to access information. Verified credentials can include information related to identifying subjects, issuing authorities, types of credentials, obstacles to credentials, and more.
With the addition of technology such as digital signatures, VC becomes clearer and reliable than its physical equivalent. This allows users to share verified credentials without releasing their privacy. With VC, no company or institution can save or control information centrally, because users can revoke credentials at any time, making it a significant trend in the Blockchain industry.
Hybrid Blockchain.
Hybrid Blockchain is the merger of the benefits offered by private and public phockchains. With blockchain hybrid, one can use public blockchain to make ledger accessible publicly accessible and personal blockchain that runs in the background that controls access to modifications in the ledger.
A hybrid blockchain can help increase intelligent contracts, auditability, and better performance while providing transactions to increase verification and transparency. Hybrid Blockchain members can determine who can take part in Blockchain or which transactions are published.
Blockchain is the future
Seeing this top trend in Blockchain, you can easily guess that the next year, 2022, will be a significant period for the adoption of blockchains in various sectors.
And being a developer, it is important for you to learn about this trend in Blockchain technology and prepare for change. In addition, learning some of these trends will be useful to improve your career as a Blockchain developer too.
