Coinbase Chief Product Officer (CPO) Surojit Chatterjee has shared his 10 predictions about the Web3 and cryptocurrencies for 2022. This is always the last to publish its predictions for the industry, but it generates great interest from the public.
It foresees, among other things that we are going to mention, great advances in the scaling of Ethereum. You can check all the predictions on the Coinbase blog.
I. Eth scalability will improve, but new L1 chains will see substantial growth. II. Significant usability improvements will occur on bridges L1-L2
Chatterjee predicts scalability will be vastly improved thanks to advances in layer-to-layer bridges, adding that the industry “will desperately seek improvements in the speed and usability of L1 and L1-L2 crossover bridges.” These bridges make it possible to move tokens from a layer one network, such as Ethereum, to a layer two network, such as Arbitrum, and vice versa.
Massive user input can affect the performance of this system. Ethereum is currently capable of 20 transactions per secondHowever, it is somewhat insufficient, according to experts, for this year, due to the arrival of millions of users.
“The traction of Solana, Avalanche and other L1 networks shows that in the future we will live in a multi-chain world. We will also see the emergence of new L1 networks focused on specific use cases, such as video games or social networks,” says the CPO.
This holiday season (and always), we’re thankful for the incredible work of the many EF-supported teams that continue to improve # Ethereum.A final (hefty) EF-Supported Teams Roundup of 2021 from 15+ teams is here, and it’s worth the read. Enjoy! 🦄https: //t.co/HGcVVPCZgX
– Ethereum (@ethereum) December 22, 2021
III. Zero-knowledge-proof technology will have greater traction
Protocols such as ZkSync and Starknet (solutions to the scalability problem) have gained relevance in 2021 precisely because of the problem in the L1 strings. It is expected that by 2022, and the exponential increase that they are seeing in the number of investors, these protocols will continue to make protagonists.
On the other hand, Chatterjee says that “we will see the emergence of new use cases focused on privacy, including secure applications for privacy, and video game models that have privacy built into the core.”
Of course, special attention will be paid to KYC (know your customers) and AML (money laundering prevention) criteria, so present in today’s financial institutions.
IV. Regulated defi and appearance of KYC certification in the chain
DeFi (decentralized finance) is a revolutionary innovation which allows anyone to access loans and other financial services in a decentralized manner and without intermediaries.
Well, heading into this year, he predicts that “many Defi protocols will embrace regulation and create separate KYC user groups. KYC’s decentralized identity and on-chain certification services will play key roles in connecting the actual identity of users with the endpoints of the Defi wallets. “
V. Institutions will play a much more important role in the participation of Defi. SAW. Defi insurance will emerge
The cost reduction in the provision of financial services through Defi It opens up interesting opportunities for institutions, which is why they are increasingly trying to participate in them. Chatterjee says DeFi could change the finance industry somewhat.
On the other hand, “as Defi proliferate, they also become the target of security hacks. To protect users from hacks, viable insurance protocols will emerge in 2022 that guarantee user funds against breaches. security ”, he adds.
VII. Communities based on NFT will make the necessary competition to the social networks of Web 2.0
An NFT is not just a pretty picture. This encompasses a community behind that interacts with each other in relation to that “something” created. This, in short, is basically what current social networks are based on.
“NFTs will become the next evolution of users’ digital identity and their passport to the metaverse. Users will come together in small and diverse communities based on the types of NFTs they own.”
“User-created metaverses will be the future of social media and will begin to threaten the centralized versions of today’s social media, driven by advertising.”
VIII. Brands will begin to actively participate in the metaverse and NFTs
The arrival in the future of this digital universe will mean the massive arrival of all brands in consecuense. What the metaverse will do is allow buyers and sellers to connect in new ways. The forms of communication that exist today will be simplified.
On the other hand, the gaming experience will be much more real. Barriers between the real and virtual world will be removed. “NFTs and the metaverse will become the new Instagram for brands. And just like on Instagram, many brands may start out as native NFTs. We will also see many more celebrities jump on the bandwagon and use NFTs to empower their brand. personal”.
IX. Web2 companies will wake up and try to break into Web3
The great advance that the network has experienced in recent years has led to numerous advances and improvements. And it is that taking into account that no big company wants to be left behind and they want to receive their share of the pie When all of this blows up, they’re rushing to make changes to accessibility, interaction, and personalization.
“We are already seeing this with Facebook trying to transform itself into a Web3 company. Other large Web2 companies are likely to dive into Web3 and the metaverse in 2022. However, it is likely that many of them will create centralized versions. and the closed network of the metaverse ”.
X. It’s time for DAO 2.0
A DAO or Decentralized Autonomous Organization, refers to a new way of organizing and running organizations, making use of smart contracts and blockchain technology to provide transparency, immutability, autonomy and security to them.
Well, in 2022, “more people will join DAOs, which will cause a change in the definition of employment: they will never receive a formal offer letter, they will accept tokens instead of fixed salaries or together with them, and they will work in multiple DAO projects at the same time, ”Chatterjee ends.
With all this, we will see what happens throughout this year and which of its predictions finally come true.
Being objective, although some are quite complicated to predict, such as those related to cryptocurrencies and their growth or not, all are framed in a situation that we are currently living: companies that are embarking on the world of NFTs, a financial system that seeks to reshape itself and that fights against cybercrime or an increase, sometimes uncontrollable, of new investors.