Blockchains are shared, permanent records, databases, or ledgers that store information so securely that it is almost impossible to alter, tamper, or cheat the system and people using it. For a technology gaining increasing traction and popularity, you would think a large population of persons would readily understand the concept of blockchain. However, statistics from North America, where the technology is pervasive, show that about 98% do not understand the basics of blockchain and related coins. However, blockchains have more to come, and the future has so much to offer. The section below examines the four next significant innovations in the blockchain.
What are the Next Big Innovation Areas that Blockchain has to Offer
In less than two decades since its inception, blockchain has come a long way and offered various technological developments. Blockchains still have a lot to offer, and the parts below show the different ways the technology can bring innovations in the soonest future.
1. Sector Transcending
Non-fungible Tokens (NFTs) are unique virtual identification of physical or online assets. NFTs were traditionally centred on selling and acquiring art, which has taken off in a big way. NFTs are usually built on an already established blockchain, e.g., Ethereum. But more than that, blockchain is now being used to create NFTs to permeate all sectors, including education, health, infrastructure, real estate, and several others. We may see blockchains used for various vital functions across industries through NFTs.
2. Green Blocks
By their very nature, blockchains require very high energy concentration for production, especially for coins that rely on the Proof-of-Work system. As perfect as blockchain technology may seem, a lingering reservation from widespread use is its energy-intensive nature and the grid power expended to utilize the technology. Subsequently, it is expected that there will be intensified efforts to ensure that blockchain use is pretty green. Steps have already begun to switch from the Proof-of-Work System, which is very energy intensive, to the Proof-of-Stake system. Regardless, what matters is that blockchains are set to go green sooner or later.
3. The Metaverse and Web 3.0
The Metaverse has been a product of blockchain for a while now. However, just like a diamond in the rough, it offers enormous potential if placed in a suitable habitat for growth. The technology can be used as a virtual representation of physical assets ranging from arts, real estate, music, and many more. Even now, companies have begun to recruit employees globally using the Metaverse.
4. Wide Spread Cryptocurrency
It is common knowledge that the popularity of blockchain and Distributed Ledger Technology is on an incline, with no plans to move down the slope anytime soon. Now, countries and organizations are beginning to recognize blockchain as a legal tender and accept it for official transactions. In 2021, El Salvador joined the list of countries to accept Bitcoin as a formal legal tender. It is also projected that several African countries will join the league soon.
Conclusion
Blockchain presents a whole new world to explore. Many countries have jumped on the train of exploration while others are a tad bit reluctant. Regardless, the recent acceleration of the technology is proof of a long-lasting innovation that cannot be rebutted.
