Exciting developments in blockchain technology that you should be aware of

Gabriel Mangalindan

Into tech, AI, startups and blockchain

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 bank digital currencies (CBDCs) are gaining more traction

Cryptocurrencies can potentially revolutionize how businesses pay their workers, which are already accepted as payment for various products and services around the world. However, the rising costs of sending money internationally and general inflation are likely to be the primary driving forces behind accepting cryptocurrencies as legitimate forms of payment in the future. Therefore, another potentially fruitful area for the development of blockchain technology will 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 instead of choosing decentralized currencies to use as a medium of exchange. This trend also seems to be gaining momentum.

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 also plans to test its retail CBDC by the end of this year. As a result, users may soon be able to conduct 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 popular

One of the most important 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 at auctions and the technology is still hot in 2022.

Non-fungible tokens are unique blockchain tokens that cannot be exchanged with each other due to their uniqueness. This led developers to connect these symbols to unique artwork such as 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 games are another popular avenue for NFT technology. Play-to-Earn games like Axie Infinity have helped bring NFT games into the limelight.

P2E games work by users earning tokens for completing missions or fighting other players, with Axie Infinity, for example, rewarding its players with Smooth Love Potion (SLP) for participating in matches. Battles are fought using NFT creatures known as Axies, and P2E initially became popular in countries such as the Philippines. However, there is now a negative feeling due to bad experiences from players. Despite this, experts still believe that P2E games have 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 accompany this growth. I look forward to seeing how new developments are brought to space over the next few years.