In 2022, the world is a very different place. The US had finally abolished the penny, and Solana—the new cryptocurrency of choice for online transactions—had already reached a $3.5 billion market cap. In fact, it was becoming so widely used that some people were complaining about transaction fees going up on popular streaming apps like Netflix and TwitchTV.
In case you’re wondering what SOL is, Solana was created by Solana Labs as a scalable blockchain for dApps, especially for video-streaming applications—hence its popularity with streamers and their fans. It uses “Proof of History” to verify transactions through an append-only log rather than through mining like Bitcoin.
This means that transactions can be processed in parallel without any miners approving the process. The name “Solana” is a portmanteau of “solar” and “expedite”; Solana Labs chose this name because they wanted to create an energy-efficient cryptocurrency.
Though not impossible to predict two years out, many industry experts were surprised at how quickly cryptocurrency came into prominence. Only made possible by Bitcoin’s introduction in 2009, cryptocurrencies became mainstream overnight in 2022, thanks to the proliferation of online streaming services like Netflix and Amazon Prime Video.
In fact, crypto exchanges began offering rewards programs for regular users who made purchases with cryptocurrencies (sometimes at discounts). Cryptocurrencies have officially become part of everyday life.
Here are six advantages and disadvantages you should know about when considering using cryptocurrencies in your everyday life in 2022.
By 2023, the cryptocurrency ecosystem will look much different than it does today. After a decade of explosive growth, the world’s top cryptocurrencies by market cap will have become household names. These types of digital currencies will take over as the standard form of payment for billions of users worldwide.
Digital currency technology has been gaining traction for years, with Bitcoin leading the charge and showing that there is real value in a decentralized financial system that doesn’t rely on banks or credit card companies to facilitate transactions. But even after more than ten years, this technology is still very new, and many people don’t understand how it works.
Blockchains have been one of the most controversial technological innovations in history. However, as these decentralized networks continue to grow and evolve, their uses will only become more impressive. Cryptocurrencies that run on these blockchains present superior security benefits over fiat currencies controlled by banks or governments.
Cryptocurrency transactions are fast and secure because they are held on the blockchain. All transactions are peer-to-peer, so there is no middleman to slow down a transaction or compromise its security. Cryptocurrency users can also avoid chargebacks and fraudulent credit card charges since the original currency cannot be returned to its issuer after it has already been spent.
The blockchain is also highly encrypted within cryptocurrency wallets, with many different levels of encryption protecting each new level of wallet security. The next time you buy something with your bank debit card, consider that there’s a good chance your credit card information is being stored on numerous unprotected servers around the world (many of which aren’t even owned by your bank).
With cryptocurrencies like Bitcoin, this isn’t an issue because all of your information is fully under your control; if you lose your password or encryption key for accessing one particular wallet, you can simply create another one without worrying about identity theft or fraud concerns (assuming no other breaches occur).
Cryptocurrency transactions are fast becoming irreversible as well. If a bad actor were able to take advantage of a security breach and steal from multiple wallets at once—perhaps by hacking into a centralized exchange—you’d still be able to recover much of what was lost because it would not be possible for him to spend those funds in other transactions before you could react and get them back yourself!
In 2022, it may be commonplace to see pseudonymous transactions. This is a word you will likely hear more often in the future. It is used by cryptocurrency users as a catch-all phrase for transactions that are done outside of traditional banking or financial institutions. Since there is no centralized institution to process these transactions, they are carried out on a peer-to-peer network. This can take place through multiple cryptocurrencies and through many different methods of sending and receiving money.
Cryptocurrencies have been steadily increasing in popularity over the past few years. They were initially seen as something used only by those who were interested in an alternative form of currency—but their utility has grown beyond that into a whole new way of doing business online, making them both practical and appealing for those who use them. The ease with which pseudonymous transactions can be completed makes cryptocurrencies one of the most convenient mediums for purchasing goods or services online for everyone, from businesses to individuals, resulting in greater usage by 2022 than what we see today.
One of the most appealing characteristics of cryptocurrencies is their lightning-fast capabilities. Through the use of advanced blockchain technology, transactions can be completed in seconds and verified with a single confirmation. For comparison, traditional payment methods such as Visa or SWIFT typically take 3–5 days to finalize; Bitcoin and Ethereum can take up to 1 hour.
This advantage has made cryptocurrencies an appealing option for those who are interested in paying for goods and services online or otherwise; however, by 2022, this advantage will become a non-factor as the speed of SOL makes it irrelevant. By then, it will no longer be a deciding factor when choosing between cryptocurrencies or conventional methods.
Lower Transaction Fees
Dramatically lower fees may be the most tangible advantage of using cryptocurrencies for everyday purchases in 2022. As more and more merchants begin accepting SOL, consumers will be able to use their cryptocurrency of choice with little to no added fees.
Many cryptocurrencies have transaction fees that average less than one percent, while some of the largest payment processors charge upwards of three percent when a credit card is used. The benefits are significant: saving money every time you make a purchase can add up, especially if you’re shopping online or buying groceries, clothing, or other essentials regularly.
By the end of 2022, many experts believe that online shopping will have overtaken brick-and-mortar shopping as the preferred method of shopping for most shoppers. This means that there will be greater demand for currencies capable of processing large volumes of transactions quickly and efficiently—especially since many large retailers now require merchants who want to accept credit cards for an account with them in order to facilitate the payment process between buyers and sellers.
Proof-Of-Stake Consensus Mechanism for Lower Electricity Consumption
By the end of 2022, cryptocurrencies are projected to account for 10% of the world’s electricity use. This is a scary statistic for two reasons: it means the sector will be using a large amount of energy, and it means the sector is projected to grow significantly. The number 10% might seem like a small fraction out of 100%, but keep in mind that 1% of anything is still one thing. Also, an increase from one thing (1%) to ten things (10%) is an increase by a factor of ten—that’s a lot!
A huge hurdle for cryptocurrency skeptics and believers alike has been the enormous amount of energy consumed in their creation, maintenance, and transactions. In particular, Bitcoin uses an inordinate amount of electricity because computers are constantly trying to solve cryptographic puzzles in order to “win” Bitcoins and create new ones. These puzzles can take months or even years to solve, so the Bitcoin network has more than 100 quintillion hashes per second going on at any given time—that’s way too many attempts at solving these puzzles!
Cryptocurrency is no longer just for engineers and technophiles. Cryptocurrency is one of the most secure ways to pay online because you don’t have to worry about someone stealing your credit card or identity data when you make purchases through cryptocurrency providers like Coinbase or Circle.
These services also offer protection from unauthorized charges, unlike when you swipe your credit card at a physical store (or an online store hacked online). You also don’t need to carry around cash because cryptocurrency providers can send funds directly into your bank account. And since cryptocurrencies are decentralized, there’s no threat of inflation eroding their value over time—unlike with fiat money.
Though it may take years for cryptocurrency to become the norm in our society, both consumers and merchants will benefit from its use if it does catch on with mainstream audiences, as we believe it will do in 2022!