The term blockchain refers to a network typically, which uses the implementation of what is known as blockchain technology. Blockchain technology is an implementation of computer science in which Programmers, Developers and Engineers create a digital network structure which uses the principles of cryptographic science to encrypt the open-source, publicly accessible digital platform. Blocks are records which are preserved on the blockchain, or chain of blocks.
The blockchain uses nodes in most cases, to verify peer-to-peer transactions being sent along the network by individuals utilizing cryptocurrencies as the store of value. These nodes are also referred to as blocks in some cases. Nodes are rewarded in most models, for their work in verifying various aspects of transactions and keeping the network safe and efficient.
Different Blockchain Consensus Mechanisms
Proof-Of-Work (PoW) and Proof-Of-Stake (PoS) are the most common forms of consensus mechanisms used to validate transactions and reward validators on the various blockchain networks. While these two are the most common, other models like Proof-Of-Concept exist as well. This is especially true now that PoW is largely being moved away from, as greater energy efficiency becomes increasingly important.
Recent 2022 Blockchain News
The global crypto market has taken significant hits in total market capitalization and even trade volume over the majority of 2022. Most of the year has been seemingly saturated with blockchain news riddled with information about ecosystem crashes, uncertainty around regulatory pressures and anticipated changes still largely unclear, sudden bankruptcies of well established platforms, and not to mention – a massive industry-wide downtrend which has led to what many are calling an official extended bear market.
With all of these factors hanging in the balance, there have been bright spots for the crypto market and outlook also. In times of great uncertainty, what is actually certain will persist and become clearly evident. That has seemed to hold true in the case of the digital assets market, as cryptocurrencies have expressed evidence of evolution and growth in an extended season of persistent market challenges.
The Resilience of Crypto and Blockchain Technology
To any individual remotely tuned into recent news in the financial sector, it is clear that all global markets have suffered throughout most of 2022. With a recession in the conversation for weeks now, and growing uncertainties around the near and distant future landscape and expectations within the global economy, the cryptocurrency industry did something it has never done prior to this season.
A July Rally In The Crypto Market
In July, the digital assets market experienced a surge. While a rally and price surge is nothing new for crypto, it is uncommon for it to occur when the rest of the economy is performing as it did in July. Typically when the Federal Reserve raises interest rates, a downturn is seen across all tradable asset markets almost immediately – within the day on most occasions. In July, they raised rates not once, but twice. Interestingly enough, this time the stock market, along with crypto, did the opposite.
In July both experienced rallies, which offered a glimmer of hope in challenging economic times. The Fed essentially shrinks the money supply and makes money more expensive to obtain when interest rates are raised. This effect is usually seen in the market, by the removal of liquidity and shrinking themselves, but instead, the opposite occurred.
Growth Returns To Many Cryptocurrencies
In July alone, Bitcoin recorded an increase of around 25% to its most recent high of over $24,500, while the price of ETH experienced about a 55% percent rise in value, according to available market metrics. The rest of the digital assets market experienced growth as well, and recovered some of the once $3 trillion dollar total market capitalization registered just last year in 2021.
The specific cause of these effects can be attributed to multiple factors potentially. Ethereum blockchain news of its anticipated merger, and other enhancements to blockchain technology and relevant utilization across ecosystems like Shiba Inu, Curve DAO and other ecosystems, possibly contributed to surges witnessed across the crypto space also.
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