Staying up to date with everything that’s going on in blockchain and crypto can be challenging. With so many innovative technologies making their way into public use, it’s easy to get lost in the Web3 space. Furthermore, since the introduction of Bitcoin in 2009, the face of the industry has changed somewhat. However, staying on top of the hottest Web3 trends is still essential for investors and anyone working in the industry. Understanding the narratives that move the markets can help when developing investment strategies. Plus, it could help you to identify job opportunities in Web3 as the industry continues to expand. As such, we’ve collated the biggest narratives and most prominent Web3 trends of 2022.
In this article, we’re going to dive deep into the hottest Web3 trends of 2022. We’ll explore the key narratives helping to shape the Web3 landscape. Plus, we’ll explore some of the high-utility technologies that dominate the Web3 space.
The Hottest Web3 Trends in 2022
The Web3 landscape is broad and varied. With so many different use cases for blockchain, smart contracts, and NFTs, it can be challenging to keep up to date with everything that’s going on. Furthermore, understanding the narratives that shape the industry is essential for any investor or person looking to work in Web3. Below, we take a closer look at some of the hottest Web3 trends in 2022.
Non-Fungible Tokens (NFTs)
The first of our hottest Web3 trends in 2022 is NFTs. Non-fungible tokens (NFTs) have been one of the biggest drivers of Web3 adoption in recent years. Demand for NFTs has surged, and its innovative technology has become an essential marketing tool for businesses and celebrities. Also, NFTs play a crucial role in Web3 gaming and metaverse applications by giving users verifiable ownership of in-game items. Moreover, platforms such as NBA Top Shot combine NFTs with sports and entertainment. However, the utility of NFTs expands well beyond collectibles and gaming.
NFTs empower artists and musicians by democratizing the distribution process. Releasing music as NFTs allows artists to take a larger share of royalties. Plus, it removes unnecessary intermediaries. Additionally, NFTs help to prevent ticket touting and create frameworks for regulating secondary markets. Plus, they create new audience engagement opportunities and enable artists to bundle multiple mediums into one product.
M2E, or move-to-earn, is one of the hottest Web3 trends of 2022. It takes influence from the popular play-to-earn (P2E) gaming model, which facilitates value creation by completing gaming activities. Furthermore, M2E platforms use elements of decentralized finance (DeFi) to incentivize users to move and stay active using cryptocurrencies. However, these platforms require participants to engage in physical activities and sporting competitions rather than playing computer games.
Also, M2E platforms help increase transparency in sporting events, thanks to the use of blockchain technology. All scores and results are immutably recorded on the blockchain, making them tamper-resistant and resistant to manipulation. Moreover, M2E platforms allow anyone in the world with an internet connection to participate in sports tournaments and events, regardless of their geography.
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Decentralized Autonomous Organizations (DAOs)
Decentralized autonomous organizations (DAOs) have already shown us that thriving communities can self-regulate without the need for a central authority. The DAO model relies on governance tokens, the holders of which have the chance to vote on proposals to make changes to the corresponding protocol or the future direction of a project. Moreover, rather than relying on a small handful of powerful individuals to make crucial decisions on behalf of an entire community, DAOs democratize the decision-making process and allow stakeholders to have a say in how a platform is governed.
Throughout 2022, the utility of DAOs has become increasingly evident. Automating the decision-making process allows decentralized communities to thrive in a trustless environment. Plus, DAOs can help remove many inefficiencies associated with traditional governance mechanisms. Moreover, the full extent of the DAO model’s utility is yet to be realized.
Layer-2 Scaling Solutions
Layer-2 solutions take computations off the main chain (layer-1) to prevent network congestion and reduce fees. These scaling solutions have become a crucial part of the Web3 landscape by enabling developers to build and deploy decentralized applications (dapps) on Ethereum with minimal costs. What’s more, many popular Ethereum dapps now support layer-2 solutions, including Polygon and Optimism. Furthermore, layer-2 solutions promote interoperability, which is currently one of the key narratives in 2022. When developers build dapps with cross-chain functionality, they provide greater utility to users.
Bitcoin Lightning Network is another exciting layer-2 solution. It’s helping businesses to adopt Bitcoin payments globally, and several prominent payment applications now support Bitcoin Lightning Network. As a result, it’s putting crypto payments at the fingertips of millions of people through legacy financial services such as Cash App.
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In the early days of blockchain, developers had to build everything from scratch. Proprietary technology was the norm, which meant Web3 projects were often reluctant to share their technology. However, a significant amount of technology in Web3 is now open-source. As such, building cross-chain dapps and integrating Web3 features is easier than ever.
These days, you don’t need to be a programming guru to implement Web3 functionality into your app. Also, you don’t have to spend a lifetime writing backend code, thanks to blockchain-as-a-service (BaaS) platforms such as Moralis. Moralis saves developers an average of 87% on development time. This creates more time to focus on developing amazing user experiences. Plus, users gain access to a modular toolset that enhances productivity while lowering the barrier to entry for Web3 development.
The power consumption of the Bitcoin network is around the same as an entire country like Sweden or Argentina. Furthermore, the proof-of-work (PoW) consensus mechanism that underpins the number one cryptocurrency is extremely energy-intensive. Thus, the Web3 landscape is undergoing a shift towards sustainability to safeguard the future of the industry and the planet. One example of this was seen as Ethereum switched to proof-of-stake (PoS), which significantly reduces the amount of energy required to confirm transactions on the Ethereum blockchain.
Moreover, several prominent mining firms are looking for green and renewable energy sources to lower the environmental impact of PoW mining. Examples include solar, wind, and hydroelectricity. Also, some mining firms are using energy from excess fossil fuels to mine Bitcoin. One of the biggest concerns about the longevity of Bitcoin is its electricity consumption. Nonetheless, as more mining firms transition to greener energy, the Web3 industry is becoming more sustainable.
Artificial Intelligence and Machine Learning
Artificial intelligence (AI) and its subset, machine learning (ML), are both crunches of computer science and use computers to simulate the human decision-making process. Both AI and ML are becoming essential tools sector-wide. However, the adoption and development of AI technologies rely on robust auditing frameworks to ensure they pose no danger to humans.
Moreover, because blockchains provide an immutable ledger of records, AI and ML practitioners often rely on them to ensure that all data and variables are recorded and stored securely. Furthermore, the tamper-proof record of events makes auditing AI and ML projects more reliable and transparent.
Cross-chain interoperability has become an important narrative throughout 2022, becoming one of the most significant Web3 trends to date. Once upon a time, blockchain communities were siloed. If you built a dapp on one blockchain network, you were likely building it with the quirks of that network in mind. However, cross-chain communication is becoming commonplace in Web3, as are cross-chain dapps.
Furthermore, many popular dapps are now built with interoperability in mind. This is particularly beneficial for DeFi protocols, as it allows them to access more liquidity and reduce price slippage on decentralized exchanges (DEXs). What’s more, cross-chain interoperability helps galvanize the Web3 community and minimize tribalism.
Airdrops are promotional activities that incentivize new users to emerging platforms by depositing free tokens into their crypto wallets. Users must often complete tasks to qualify for airdrops, such as social media interactions and community engagement. However, some prominent airdrops have seen tokens distributed retroactively to anyone using a Web3 platform.
For example, Ethereum Name Service (ENS) and Uniswap conducted retroactive airdrops for anyone who used each platform during a specific window. These airdrops played an essential role in establishing the airdrop model. Since then, airdropping tokens has become a go-to marketing tool for new and emerging Web3 projects.
For Web3 and blockchain to truly achieve mass adoption, it has to be accessible to all. As such, the industry requires a robust and unified regulatory framework. The institutional adoption of Web3 is helping to establish this framework. Without it, most companies wouldn’t go near blockchain and Web3. However, thanks to the surging interest from financial institutions, Web3 is on its way to becoming adopted industry-wide.
Also, thanks to the growing number of prominent companies turning to NFTs and the metaverse for marketing opportunities, Web3 is no longer an alien concept to many consumers. From using crypto payments online and in stores to collecting NFTs with your fast food, the mainstream adoption of these technologies has accelerated throughout 2022. Moreover, despite the bearish market conditions throughout 2022, Web3 adoption continues to grow on several fronts.
The final entry in our hottest Web3 trends list is education. Today, it’s easier than ever before to gain access to high-quality educational material covering Web3 and blockchain. This surge in education is increasing awareness around Web3 while empowering the next generation of Web3 professionals. Plus, it clears up much of the misinformation around Web3 spread by mainstream media outlets.
If you’re a developer looking to transition from Web2 to Web3, the Moralis YouTube channel has a wealth of free educational content to help you get up to speed. Also, if you want to learn how to write smart contracts, use oracles, or learn about the basics of Web3, Moralis Academy has got you covered.
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The Hottest Web3 Trends in 2022 – Summary
Web3 trends often come and go. However, it’s important to keep an eye on these narratives, as some of them could become defining characteristics of the Web3 industry in the months and years to come. The utility of Web3 is becoming difficult to ignore. What’s more, blockchain and smart contracts are helping to optimize business practices sector-wide. In turn, this is helping promote Web3 adoption from some of the biggest companies in the world, including IMB, Coca-Cola, Microsoft, and Amazon.
Moreover, the hottest Web3 trends of 2022 could become the defining technologies that help cement Web3 in the public consciousness in years to come. While some of these trends may seem relatively obscure or insignificant, it’s difficult to ignore just how far the industry has come in such a short time.
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