Coinbase Chief Product Officer Surojit Chatterjee is the newest to publish his predictions for the crypto {industry} in 2022 and he foresees main advances within the scaling of Ethereum.
Trade leaders, analysts, and buyers are sharing their 2022 predictions for the crypto ecosystem, and Coinbase’s Surojit Chatterjee is assured that Ethereum can 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 by which he acknowledged that Ethereum scalability will enhance however various layer 1 networks can 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 centered on gaming and social media can even emerge. Chatterjee predicts that scalability can be vastly improved by advances in layer 1 to layer 2 bridges, including that the {industry} will “desperately search enhancements in pace and usefulness of cross-L1 and L1-L2 bridges.”
These bridges allow tokens to be moved from a layer 1 community equivalent to Ethereum to a layer 2 community equivalent to Arbitrum and vice versa.
Referring to scaling applied sciences, the CPO particularly talked about ZK-rollups stating that they are going to “entice each investor and person consideration.” Zero-Information scaling “rolls up” transactions information in batches for extra environment friendly processing on Ethereum’s layer 1.
Companies equivalent 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 huge enlargement in 2021 with a surge in adoption for all main platforms. In line with L2beat, which tracks the L2 ecosystem, the whole worth locked surged by practically 11,000% over the previous yr from round $50 million in January 2021 to $5.5 billion by the tip of the yr.
Associated: Even with Ethereum 2.0 underway, L2 scaling is still key to DeFi’s future
Chatterjee predicted that there can be extra privacy-focused purposes rising however this might entice 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.
