Coinbase Chief Product Officer Surojit Chatterjee is the most recent to release his forecasts for the crypto market in 2022 and he predicts significant advances in the scaling of Ethereum.
Industry experts, leaders, and financiers are sharing their 2022 forecasts for the crypto community, and Coinbase’s Surojit Chatterjee is positive that Ethereum will be at the leading edge of We b3 and the crypto-economy as it scales.
The CPO shared his forecasts in a business article onJan 4 in which he specified that Ethereum scalability will enhance however alternative layer 1 networks will likewise see traction.
“I am optimistic about improvements in Eth scalability with the emergence of Eth2 and many L2 rollups.”
He included that more recent layer 1 networks concentrated on video gaming and social networks will likewise emerge. Chatterjee forecasts that scalability will be greatly enhanced by advances in layer 1 to layer 2 bridges, including that the market will “desperately seek improvements in speed and usability of cross-L1 and L1-L2 bridges.”
These bridges make it possible for tokens to be moved from a layer 1 network such as Ethereum to a layer 2 network such as Arbitrum and vice versa.
Referring to scaling innovations, the CPO particularly pointed out ZK-rollups specifying that they will “attract both investor and user attention.” Zero-Knowledge scaling “rolls up” deals information in batches for more effective processing on Ethereum’s layer 1.
Firms such as Matter Labs have actually advanced in leaps and bounds in 2021 with the advancement and release of their rollup-based zkSync layer 2 platform.
The layer 2 community has actually gone through huge growth in 2021 with a rise in adoption for all significant platforms. According to L2beat, which tracks the L2 community, the overall worth locked rose by almost 11,000% over the previous year from around $50 million in January 2021 to $5.5 billion by the end of the year.
Related: Even with Ethereum 2.0 underway, L2 scaling is still essential to DeFi’s future
Chatterjee anticipated that there will be more privacy-focused applications emerging however this might bring in more regulative attention as more KYC/AML (understand your customer/anti-money laundering) limitations are implemented.
“We’ll see new privacy-centric use cases emerge, including privacy-safe applications, and gaming models that have privacy built into the core.”
Other forecasts he made consist of more guideline industry-wide, bigger institutional involvement in DeFi, the development of more DeFi insurance coverage, higher brand name participation in Metaverse and NFTs, and We b2 business rushing to enter We b3.