Bitcoin (BTC), NFT, metaverse: Challenges for 2022 to continue to grow the ecosystem

Once all the highlights of the year have been developed, let’s look at the challenges we still need to work on to continue to have a good ecosystem and build a new version of our society.

Big challenges to overcome

First of all, the security challenge. Thanks to the encryption mechanism and decentralized infrastructure, the blockchain has one of the most secure technology frameworks available. However, errors in the code smart contracts, malicious actors, or simply poor security practices, can lead to poor outcomes with negative consequences. Securing your tokens using a hardware wallet, doing your own research before investing, avoiding clicking on questionable links, or sharing a private key with others are some examples. of good security practices that are easy to do and should be done. .

Second, the regulatory challenge. Even if it is to protect blockchain users, but also to increase the level of trust within the sector, regulation is essential for a sector to be fully structured and professionalized. Undoubtedly neglected in the beginning, regulatory issues has become a worldwide priority. This is the case with the SEC in the United States, the European Commission in the EU but also the AMF in France with improvements in the PSAN situation for example.

Source: World Economic Forum

Regulation should help the sector thrive without disrupting innovation, and in this sense players like ADAN in France are helping ecosystem projects thrive.

Other challenges such as Intellectual property of blockchain projects may arise, even if they are contrary to the model open-sourcethis helps protect the work of developers.

Also, customer loyalty and sustainability are at the center of projects, especially in NFTs. If the sector wants to grow, all costs must consider the user base as a top priority, and nurture it as necessary. It will also promote greater adoption by the general public.

In the end, the fake news who tried to corrupt and misrepresent the blockchain and in cases of its use.

It is important to provide as much educational information to the general public as possible. This will reduce the number of incorrect assumptions that lead to a negative outlook across the industry.

And in particular, to look different the final challenge is to shift in nature where blockchain and cryptocurrencies may play a role, as evidenced by the latest announcements from Tezos or Solana in this area.

In fact, if this is true the consensus mechanism Proof of Work (PoW) used in blockchains such as Bitcoin or the first return of Ethereum is far from energy efficient, this consensus mechanism is less and less used due to its operational drawbacks such as low speed and low scalability . Almost the entire spectrum of DApps now relies on other consensus mechanisms such as Proof-of-Stake and Proof-of-Authority, among others, that are more energy efficient. It is therefore an exaggeration to say that NFTs, games and other cases of blockchain use are harmful to the environment.

2021 proves that the blockchain industry is one of the most exciting sectors

Thanks to the euphoria created by avatars and NFT, the general public has finally realized the power of this technology. Rising demand for NFT, bolstered by $ 22 billion in trading volume, is just the tip of the iceberg. The potential of these assets is enormous and beyond the monetary impact within the industry.

Even if all eyes were turned to the NFTs, the play and the metaverse, DeFi continues to grow and consolidate. Ethereum needs to develop in the right direction when it comes to Proof of Stake.

And although many challenges remain, adoption seems closer than ever, especially given the traditional financial situation and inflation that has led to a rethink of our current monetary system.

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Karen Jouve

Enthusiastic about new technologies, and blockchain! Digging into new trends, the latest market developments, and ecosystem nuggets, I’m happy to introduce you to this universe in all its colors.

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