The crypto world was booming and transforming in 2021 with its new blockchain trends and inventions, but 2022 will bring even more.
The crypto world was booming and transforming in 2021 with its new trends and inventions, but this is just the beginning. Blockchain technology has taken over many industries and given a start to new products. We have already seen some trends this year, and here is what to expect from the crypto universe in 2022.
No, it’s not only about Mark Zuckerberg’s new version of Facebook “Meta”, which will be the interconnected set of experiences straight out of sci-fi. While some imagine the metaverse to be something like the world from the Matrix or Ready Player One, it actually has some features. The metaverse has to:
- be a user-generated content powered by no-code world-building rather than a predetermined set of realities produced by a few people.
- be a fully functional economy so that all participants can trade goods and services that have some particular values.
- have content and the variety of experiences created either by individuals or enterprises like in the real world.
- be continuous, like a living experience for everyone in the real world, where users would be able to log in every moment.
- have the 3D expressions developed using Augmented Reality, Virtual Reality, Mixed Reality, or Extended Reality technologies.
While Facebook is about to create its metaverse, some companies are already implementing its features. For example, a company called Matterport is helping businesses to digitally capture a 3D image of their spaces and put it on the cloud. Customers could go to their favorite stores virtually and explore them by physically staying at home. The online gaming platform Roblox wants to give users and developers ways to create digital worlds. They even already have their own currency, Robux.
But what is the connection between the metaverse and the crypto world? Many new platforms running on blockchain technology use non-fungible tokens (NFTs) and cryptocurrency to build, own, and monetize innovative decentralized assets. Without blockchain technology, the metaverse would be incomplete because everything would be stored in the centralized network. Thanks to blockchain’s capacity of working globally as a digital source where crypto makes decentralization possible. The metaverse is unlike what the internet offers today.
The Decentaraland is one of the examples of blockchain metaverse. It is a 3D virtual reality decentralized platform using the Ethereum blockchain. Decentralization would give users protection and safety and allow them to own their data, while cryptocurrencies would make it possible to buy and sell goods in the metaverse.
Imagine playing your favorite game and earning money for it. GameFi is where DeFi meets the gaming sector or where profitable financial decisions meet fun and creativity. Blockchain technology has been experiencing progress in the last few years and gave a start to many new blockchain games. Here are some popular ones:
- Axie Infinity (market capitalization – 10 billion $) is a game built on Ethereum where users collect, breed, and trade fantasy creatures called Axies like pokemons and earn tokens. It is mostly played by gamers in the Philippines and Venezuela because of its “play to earn” feature.
- In the CryptoBlades game built on Binance Smart Chain players earn SKILL tokens by defeating enemies, raiding with friends, and staking gains.
Most of the existing games right now are quite simple and are about the implementation of the NFTs into the games in the form of articles or characters that can be traded in the game. There is much potential in this sector and as a next development step, we can expect many popular gaming companies to enter the market of other more real-world brands starting selling their products like clothes or food as NFTs in the games.
DAO – Decentralized Autonomous Organization
While many believe DeFi will be the replacement to the traditional financial system and NFTs – the new digitalized generation of art, so known DAOs (decentralized autonomous organizations) are gaining their popularity and might also be the successors for centralized corporations or hierarchies.
DAOs work on blockchain and smart contracts and are basically the organizations where participants make investments and manage projects together in a decentralized way. It means, these organizations don’t have any specific structures like enterprises and are not governed by anyone. The governance instead is coded in the smart contracts and hard to change. No one has to wait until a sufficient amount of members make a vote for some decision. Everything is public and transparent. The DAO tokens might even replace the companies’ equity in the future, but they will first need to overcome some regulatory issues.
Here are a few examples of well-known DAOs:
- The PleasrDAO and the Flamingo collect various NFTs and invest in other assets.
- The HerStory DAO collects and funds projects by Black women and non-binary artists.
- The Komorebi Collective DAO funds women and non-binary crypto founders.
- The MetaCartel Venture DAO is a for-profit business that invests in early-stage decentralized applications and is an attempt to build a venture-capital investment group inside a DAO structure.
Whether it’s a gaming, art, or investment sector, blockchain technology could be implemented almost everywhere. Virtual systems are becoming more and more popular and we see demand in them, so we should expect an active improvement of the system soon, especially when we have the opportunity to make it decentralized and independent.