Blockchain is one of the fastest growing technologies today, a target of large investments for its development and increasingly innovative perspectives to its uses. Initially, it became famous for being the platform responsible for enabling the creation and transaction of the most famous cryptocurrency so far invented, Bitcoin. However, being characterized as a database, with a decentralized network, encrypted and with strong inviolability, it allows its uses to go far beyond cryptocurrencies.
The indicatives reveal the understanding of Blockchain as a Service (BaaS), mobilizing the creation of new utilities of this technology, being Blockchain capable of welcoming new initiatives and large solutions in an agile and safe way, investments when using blockchain are lower and less complex. Although currently most corporations investing in these solutions are large, the trend is that more and more medium and small businesses explore this universe.
It is estimated that in the year 2022, 11.7 billion USD will be committed to blockchain solutions in companies, making use of their smart contracts, and solutions in logistics, security, and intellectual property, for example. Below we can follow some of its main trends for this year.
According to the history of its popularization itself, it is crossed by the emergence of Bitcoin, where the proof-of-work mechanism related to the mining of this cryptocurrency indicates a high level of electricity consumption, including confirmation of its transactions. In this way, initiatives that are capable of using alternative mechanisms, such as proof-of-stake, will gain prominence. And also other innovative solutions using Blockchain technology to act directly or indirectly in reducing carbon emissions across the planet.
One of the new trends in the blockchain and cryptocurrency universe is projects in the real world, offering services in exchange for a fee on the blockchain, generating revenue, and adding liquidity directly to the project pool. Initiatives with these ideals have taken place directly in Brazil and started a trend of great importance and usefulness for the crypto world, in addition to providing greater security and adding liquidity through services in the field of traditional businesses. Some successful projects we've had related to these themes are Nelore Coin, iMov, and Abacate Token, among others.
Metaverse is positioned as one of the great and most robust novelties promoted by Blockchain technology, integrating itself with the idea of virtual reality and augmented reality. And since it is a 3D universe constituted by the connection between several virtual ecosystems, where it is possible to dynamically interact with other users, cryptocurrencies are the foundation for the establishment of a digital economy. Companies such as Google and Microsoft have been developing initiatives in this direction, as well as Facebook's change to the name Meta reinforces the great interest of large corporations in the development of Metaverse, opening the way for future small and medium-sized initiatives.
In 2021, El Salvador became the first country to consider Bitcoin as a legal currency, being accepted for the payment of the most diverse goods and services. This is a trend in several other countries, mainly due to the advances in the debates about the regulation of cryptocurrencies. Brazil has been dedicated to creating specific legislation to regulate the cryptocurrency sector, in the Chamber of Deputies, bill 2.303/15 indicates the creation of a regulatory and supervisory body for exchanges that seek to develop their activities in the country. As well as nations around the world have been discussing the adoption of digital national currencies, such as China, Singapore, and Japan. These types of initiatives will become increasingly common, as regulatory mechanisms are gradually implemented.
In the year 2023, we will be able to witness further developments of what was presented to us by Gavin Wood, co-founder of Ethereum, as Web 3. The proposal is for a decentralized internet as a counterpoint to the current centralization framework, where the control of the content and information available on the network is concentrated in the hands of large corporations. Gartner proposes that most of the largest companies (+40%) on the planet will use a mix of technologies such as Augmented Reality, Web3, and digital twins, in Metaverse development with a focus on revenue generation.
A proposal for greater integration between Blockchain technology and the process Internet of Things (IoT) is capable of proposing a diversity of services related to the automation of processes and transactions between machines carried out in digital processes, for example. And with a larger 5G network, one of the greatest potentials for connectivity between devices, a great potential of connected networks between devices, one of the interconnected computing networks, and the possibility of huge implementation, benefiting from the level of security and scalability integrated with immutability, encryption Blockchain database. In addition to data transmission speed, Artificial Intelligence has one of the biggest advancement factors in the IoT area and has been anticipated in its AI results.