Exciting Developments in Blockchain Technology That You Should Be Aware Of

Blockchain technology has evolved significantly, from a digital currency used for payments to digital assets and blockchain games. Let’s look at some exciting developments in the blockchain industry this year.

Central Banks Digital Currencies (CBDCs) Gain More Traction

Cryptocurrencies can potentially revolutionize how businesses pay their workers, which is already accepted as payment for various products and services worldwide. However, the rising costs of sending money internationally and general inflation are likely to be the primary impetuses behind accepting cryptocurrencies as legitimate forms of payment in the future. Therefore, another potentially fruitful area for the development of blockchain technology would be the introduction of the idea of national cryptocurrencies.

These government-controlled digital tokens are known as Central Bank Digital Currencies (CBDCs). The concept of CBDCs revolves around central banks producing their digital coins rather than opting for decentralized currencies to use as a medium of exchange. This trend seems to be gathering steam too. 

In June 2022, Taiwan announced plans to create its own CBDC, joining a long list of countries creating their digital currencies. The Bank of Thailand is also planning to test its retail CBDC by the end of this year. As a result, users may soon be able to carry out financial transactions using government-regulated digital currencies, which could, in theory, replace cash as legal tender in the future. 

Non-Fungible Tokens (NFTs) are Still Hot

One of the most significant innovations to the blockchain ecosystem in 2017 was non-fungible tokens or NFTs. Since gaining popularity in 2021, NFTs have been a recurring topic of discussion in the mainstream world. NFTs have sold millions in auctions, and the technology is still hot in 2022. 

Non-fungible tokens are unique blockchain tokens that aren’t interchangeable with each other due to their uniqueness. This led developers to link these tokens to unique art pieces like Bored Apes and real-world assets.

NFTs, like blockchain technology, have much more significant potential than the initial use cases that have drawn attention to them. For example, ticketing platforms are exploring using NFTs to create digital tickets to combat fraud and ticket scalping. Crypto gaming is another popular avenue for NFT technology. Play-to-Earn games like Axie Infinity have helped to bring NFT gaming into the limelight. 

P2E games work by users earning tokens for completing missions or battling other players, with Axie Infinity, for example, rewarding its players with Smooth Love Potion (SLP) for taking part in battles. Battles are fought using NFT creatures known as Axies, and the P2E initially gained popularity in countries like the Philippines. However, there is now a negative sentiment due to poor experiences by players. Despite this, experts still believe that P2E gaming has a lot of room for growth. In fact, the NFT market is predicted to reach a value of $231 billion by 2030.

Conclusion

The blockchain industry continues to grow, and new innovations and developments come with this growth. I can’t wait to see how new developments are brought into space over the next few years.