10 Analysis for Web3 and the Crypto-economy for 2022. 2021 ascertained to be a breakout year for crypto with BTC price earning almost 70% YoY, Defi striking $150B in value closed, and NFTs appearing as a further category. Here’s my opinion through the crystal ball into 2022 and what it carries for our industry:
Table of Contents
1. Eth scalability about to improve
— As we welcome the subsequent hundred million users to crypto and Web3, scalability challenges for Eth are possible to grow. I am hopeful about improvements in Eth scalability with the emergence of Eth2 and multiple L2 rollups. The traction of Solana, Avalanche and other L1 chains shows that we’ll live in a multi-chain world in the future.
2. There will be noteworthy usability advancements in L1-L2 bridges —
As more L1 networks achieve traction and L2s evolve more prominent, our drive will desperately seek progress in the pace and usability of cross-L1 and L1-L2 bridges. We’re probably to see interesting outcomes in the usability of bridges in the coming years.
3. Zero-knowledge proof technology will get increased traction —
2021 saw protocols like ZkSync and Starknet starting to get traction. We’ll visit new privacy-centric use issues that emerge, including privacy-safe apps, and gaming models that include protection built into the essence. This may even get in more regulatory awareness to cryptocurrency as KYC/AML could be an actual challenge in privacy-centric networks.
4. Web2 players will wake up and will seek to get into Web3 —
We’re already witnessing this with Facebook testing to recast itself as a Web3 company. Filecoin and harmony using Web3.
5. Institutions will recreate a much bigger position in Defi participation —
Institutions are increasingly inquisitive in partaking in Defi. Organizations like to prove that they are only transacting with understood counterparties that have finished a KYC process. The development of regulated Defi and on-chain KYC attestation will assist institutions to gain faith in Defi.
6. Defi insurance will arise —
To protect users from hacks, viable insurance protocols ensuring users’ funds against protection violations will emerge in 2022.
7. Regulated Defi and emergence of on-chain KYC attestation —
Many Defi protocols will embrace principles and will make different KYC user pools. Decentralized essence and on-chain KYC attestation benefits will play key roles in linking users’ real exactness with Defi wallet endpoints. We’ll see a better endorsement of ENS type addresses, and unique strategies from cross-chain name solutions will arise.
8. Brands will begin actively partaking in the metaverse and NFTs —
Many brands are looking that NFTs as are best vehicles for label marketing and establishing brand loyalty. Campbell’s, Coca-Cola, Dolce & Gabbana, and Charmin freed NFT collectibles in 2021. Adidas just pitched a new metaverse project with Bored Ape Yacht Club. We’re possible to see better interesting label marketing ambitions using NFTs. NFTs and the metaverse resolve become the new Instagram for brands. And just like on Instagram, many labels may start as NFT natives.
9. NFT Established Communities will give material contender to Web 2.0 social networks —
NFTs will resume developing in how they are seen. We’ll see creator tokens or fan tokens bring more additions of a first-class hub. NFTs will evolve the next evolution of users’ digital essence and passport to the metaverse. Users will arrive together in small and various communities based on the types of NFTs they own. User-created metaverses resolve to be the future of social networks and will start risking the advertising-driven centralized arrangements of social networks of today.
10. Time for DAO 2.0 —
We’ll see DAOs evolve more grown and mainstream.
Many DAOs choose to even figure out how to interact with traditional Web2 businesses. We’re likely to visit controllers taking more interest in DAOs and making an endeavor to educate themselves on how DAOs work.
Thanks to our clients and the ecosystem for an astonishing 2021.