Coinbase Chief Product Officer Surojit Chatterjee is the most recent to publish his predictions for the crypto {industry} in 2022 and he foresees main advances within the scaling of Ethereum.
Business leaders, analysts, and traders are sharing their 2022 predictions for the crypto ecosystem, and Coinbase’s Surojit Chatterjee is assured that Ethereum might be on the forefront of Web3 and the crypto-economy because it scales.
The CPO shared his predictions in an organization weblog post on Jan. 4 during which he said that Ethereum scalability will enhance however various layer 1 networks may even see traction.
“I’m optimistic about enhancements in Eth scalability with the emergence of Eth2 and lots of L2 rollups.”
He added that newer layer 1 networks targeted on gaming and social media may even emerge. Chatterjee predicts that scalability might be vastly improved by advances in layer 1 to layer 2 bridges, including that the {industry} will “desperately search enhancements in velocity and usefulness of cross-L1 and L1-L2 bridges.”
These bridges allow tokens to be moved from a layer 1 community comparable to Ethereum to a layer 2 community comparable to Arbitrum and vice versa.
Referring to scaling applied sciences, the CPO particularly talked about ZK-rollups stating that they may “appeal to each investor and person consideration.” Zero-Data scaling “rolls up” transactions knowledge in batches for extra environment friendly processing on Ethereum’s layer 1.
Corporations comparable to Matter Labs have advanced in leaps and bounds in 2021 with the event and deployment of their rollup-based zkSync layer 2 platform.
The layer 2 ecosystem has undergone large growth in 2021 with a surge in adoption for all main platforms. In keeping with L2beat, which tracks the L2 ecosystem, the overall worth locked surged by practically 11,000% over the previous yr from round $50 million in January 2021 to $5.5 billion by the top of the yr.
Associated: Even with Ethereum 2.0 underway, L2 scaling is still key to DeFi’s future
Chatterjee predicted that there might be extra privacy-focused purposes rising however this might appeal to extra regulatory consideration as more KYC/AML (know your customer/anti-money laundering) restrictions are enforced.
“We’ll see new privacy-centric use circumstances emerge, together with privacy-safe purposes, and gaming fashions which have privateness constructed into the core.”
Different predictions he made embrace extra regulation industry-wide, bigger institutional participation in DeFi, the emergence of extra DeFi insurance coverage, better model involvement in Metaverse and NFTs, and Web2 firms scrambling to get into Web3.
