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Exciting Blockchain Technology Developments You Should Be Aware Of

Central Bank Digital Currencies (CBDC) Gain traction as central banks produce their digital coins rather than opting for decentralized currencies to use as a medium of exchange. Taiwan announced its intention to create its own CBDC in June 2022, joining a long list of countries creating their digital currencies. Non-fungible tokens (NFTs) have been a recurring topic of discussion in the mainstream world since 2021. The NFT market is expected to reach a value of $231 billion by 2030.

Gabriel Mangalindan

In technology, AI, startups and blockchain

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

Central Bank Digital Currencies (CBDCs) Are Growing in Popularity

Cryptocurrencies have the potential to revolutionize the way companies pay their employees, which is 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 main drivers for the acceptance of 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 be used as a medium of exchange. This trend also seems to be gaining momentum.

In June 2022, Taiwan announced its intention 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 always hot

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

Non-fungible tokens are unique blockchain tokens that are not interchangeable with each other due to their uniqueness. This has led developers to tie these tokens to unique artworks such as Bored Apes and real-world assets.

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

P2E games work when users earn tokens for completing missions or competing against other players, with Axie Infinity, for example, rewarding its players with Smooth Love Potion (SLP) for participating in battles. Battles are fought using NFT creatures known as Axies, and P2E first gained popularity in countries like the Philippines. However, there is now a negative sentiment due to bad player experiences. Despite this, experts still believe that P2E gaming has plenty of room for growth. In fact, the NFT market is expected 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 will be introduced to the space over the next few years.

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