A lot of people are into the blockchain craze and it is here to stay.
Blockchain assets such as cryptocurrencies and non-fungible tokens (NFTs) are starting to gain more popularity as more people are starting to get into blockchain applications.
According to Professor Salil Kanhere from UNSW School of Computing Science and Engineering, blockchain has just started to take off.
What is next for blockchain? Let’s discuss.
Metaverse
One of Prof. Kanhere’s predictions is that virtual properties in the metaverse will become a big hit. Facebook recently shifted its branding to Meta. The metaverse is a network of 3D realms where its users can interact, collaborate, and socialise. People can access the metaverse through virtual reality.
Why would people want to acquire virtual properties anyway? Prof. Kanhere stated that “buying and selling virtual land is possible through blockchain because you can pretty much tokenise anything in the metaverse and sell it on the NFT market,”
He added that virtual land is all about location as well.
“Areas in the metaverse where people congregate will have a lot more value for advertisers and retailers to get access to the virtual crowd.” the professor said.
Prof. Kanhere also predicts that NFT avatars will go big as more people are starting to get into NFT collectibles, NFT avatars are vital in establishing a sense of community in the metaverse and these avatars also give owners access to certain virtual places that are considered special.
Gaming
Access to virtual reality and live streaming has helped developers provide a new gaming experience. With the involvement of blockchain, things could get more interesting for gamers.
Prof. Kanhere calls it a play-to-earn model as players can earn tokens by accomplishing tasks or acquiring elements within the game.
One of the examples of this is Axie Infinity.
“Tokens are created on a blockchain, and we’re seeing a lot more cases where users either earn tokens for how much time they spend in the game, or if there are virtual battles or quests in the game users earn tokens if they win,” Prof. Kanhere stated
The NFTs earned can also be traded for real money.
Environmental Issue
As blockchain continues to grow big, the discussions about its environmental footprint are also starting to draw more attention.
Cryptocurrencies like Bitcoin require a total amount of energy greater than Singapore and Portugal’s energy consumption.
Prof. Kanhere is optimistic that blockchain will eventually become more eco-friendly.
“Blockchain uses a lot of energy because it runs on a decentralised network to guarantee the fidelity and security of data,” he says.
“And unlike a centralised network, where all the information is stored in one place, a decentralised network relies on all the nodes in the network to agree with each other on what the source of truth is – and this requires executing complex algorithms which use a lot of energy.”
“Cryptocurrencies, such as Ethereum, have managed to change their algorithm which reduces the energy consumption. It’s a good step in the right direction but we’re going to need to make bigger moves if we want to get serious about reducing its carbon footprint.”
The professor also mentioned that more work is needed for blockchain to be aligned with climate change goals.
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