In Brief:
- Chief Product Officer, Surojit Chatterjee, positioned 10 predictions for Web3 and the crypto economic system in 2022.
- Zero knowledge proof technology will get increased traction.
- Improvements in ETH scalability will see the emergence of Eth2 and many L2 rollups.
- NFT is the next evolution of users’ digital IDs and passports to the Metaverse.
The crypto exchange Coinbase’s Chief Product Officer, Surojit Chatterjee, positioned 10 predictions for Web3 and the crypto economic system in 2022.
Events withinside the crypto space are transferring a mile a minute — and anticipate this year too, to preserve up the tempo as huge commercial enterprises stake out their turfs, blockchains refine their tech, and simpler factors of access allow newbies in. In the crypto world, the cease of the year means it’s time for subsequent year’s predictions. 2021 saw El Salvador and its president Nayib Bukele to be the most crypto advanced leading Bukele’s 2022 predictions to soar through the crypto world.
The CPO shared his predictions in a company blog post in which he stated that Ethereum scalability will see an upright boost but alternative layer 1 networks will also see traction. He said, “I am optimistic about improvements in ETH scalability with the emergence of Eth2 and many L2 rollups.” He also added that there will be significant usability improvements in L1-L2 bridges along with significant focus of newer layer 1 networks on gaming and social media.
Chatterjee predicted the birth of more privacy-centric apps, but this could draw government attention as the restrictions on Know Your Customer / Anti-Money Laundering (KYC / AML) are tightened. The growth of regulated Decentralized and Onchain KYC accreditation helps institutions gain confidence in DeFi. Distributed identity and on-chain KYC attestation services play an important role in connecting the user’s actual identity to the Decentralized Wallet endpoint.
Regarding scaling technology, the CPO explicitly mentioned ZKrollups and said it “gets the attention of both investors and users.” ZeroKnowledge scaling allows you to “roll” transaction data in batches for more efficient processing at Layer 1 of Ethereum. In 2021, companies like Matter Labs made breakthroughs in the development and deployment of the rollup-based zkSync Layer 2 platform.
Looking at DeFi, Chatterjee estimated that 2022 would bring more mainstream participation. Many defi protocols will then include regulations that create a separate KYC user pool. To protect users from hacking, a viable insurance protocol will be introduced in 2022 that guarantees users’ funds from security breaches.
Other forecasts he made include increasing brand ownership in Metaverse and NFTs. The NFT is the next evolution of users’ digital IDs and passports to the Metaverse. You’ll also see more celebrities riding the trend and using NFTs to enhance their personal brands. He added, “User created metaverses will be the future of social networks and will start threatening the advertising driven centralized versions of social networks of today.”
Ultimately, Chatterjee seemed to expect Web2 companies to try to participate in the Web3 phenomenon and metaverse, even if decentralization fails. The executive also suggested that DAO could play a more important role in the employment market and stimulate the interests of regulators.
