Coinbase's 10 Predictions for the Web3 and Cryptocurrency Markets in 2022

Editor's Note:

By the end of 2021, Surojit Chatterjee, Chief Product Officer of Coinbase, has the experience to prove that Ethereum's scalability will increase, that the L1-L2 cross-chain extension will increase, and that the technology will be visible. .

2021 became the last year to be played on cryptocurrencies, with BTC rates increasing nearly 70% year over year, DeFi closing at $ 150 billion and NFTs becoming new entities. This is my vision for 2022.

1.Ethereum's scalability will increase, but the new L1 public chain will continue to grow.

Ethereum's scalability issues could increase as millions more users enter the crypto and web3 markets. With the advent of Ethereum 2.0 and other L2s, we are excited about the power of Ethereum.

The development of public L1 channels such as Solana and Avalanche shows that we will be in many global channels in the future and the new public L1 channels will appear to focus on specific applications such as sports or social media. .

2.The availability of L1-L2 crosslinks is excellent.

As more and more L1 and L2 networks are developed, our industry will strive to improve the speed and usability of L1-L2 chain bridges. We will see a happy improvement in continued connectivity next year.

Three.Proven technology to grab attention

In 2021, systems like ZkSync and Starknet will be visible. While the L1 chain is crowded due to its wide range of applications, ZK rollup technology will appeal to both contractors and users alike.

We will see the emergence of new privacy practices, including privacy and security. This may result in greater interest in the crypto industry from regulators as KYC / AML can be a real challenge for private communications.

4.rulesChallengeAnd the proof of KYC will appear.

Several DeFi contracts are monitored and a separate KYC user is created. Custom and decentralized on-chain KYC authentication services will play an important role in connecting real users to their DeFi wallet. We will see more and more users of the new standard of ENS type addresses and multiplatform solutions.

5.organizations will participateChallengetake on more responsibilities

Schools must participate in DeFi. First, they favored higher than average interest rates over existing financial products. In addition, the cost of providing financial services using DeFi is reduced, which extends the life of installations.

But they still refuse to join DeFi. Organizations should ensure that they only exchange information with experts who have completed the KYC process. The development of DeFi management and the KYC accreditation chain will help institutions gain confidence in DeFi.

6. Challengeinsurance appears

With the development of the app, DeFi will become a target for hackers. According to data from London-based Elliptic, the total cost of loss from the DeFi disaster in 2021 will exceed $ 10 billion. To protect users against hacker attacks, an insurance policy can be used to protect users against security breaches that will occur in 2022.

sept.NFT-based communities will bring significant competition to Web 2.0 social networks.

NFTs will continue to expand their use of data. We'll see designer tokens or fan tokens play a bigger role. NFT could be a way for users to access personal and meta-global data. Users will gather in multiple communities depending on the NFT mode. User-created metavs will become the future of conversation and threaten modern conversation in the middle.

8.These brands are initially involved in the metaverse and the NFTs.

Many brands know that NFTs are an important tool in building trust and retaining businesses. Coca-Cola, Campbells, Dolce & Gabbana and Chamin will announce their NFT collection in 2021. Adidas recently announced a new Metaverse project with the Bored Ape Yacht Club. It looks like we can see a lot of interesting NFT lenses in the industry.

NFT and Metaverse become the new Instagram brand. Like Instagram, many names can start with NFTs. We will also see many celebrities joining these models and using NFTs to improve their personal profile.

9.The company Web2 got up and wanted to enter Web3.

We see Facebook trying to reestablish itself as a Web3 business. 2022 will see other big Web2 companies get their hands on Web3 and the Global Meta. However, many companies can create a medium, shutting down the metaverse site.

dix.The DAO 2.0 era is coming

We will see DAOs become more mature and important. More people will join DAOs, which will lead to changes in labor relations. There is no confirmation letter and you get tokens instead of regular payouts and work on multiple CAD projects at the same time.

DAOs will also face new challenges in mergers and acquisitions, control of payments and profits, and collaboration between increasingly large organizations. You will see the results of various tools to help you perform your DAO properly. Many DAOs need to know how to interact with Web2 businesses. Administrators will appreciate DAOs and try to understand how DAOs work.

Thank you to our customers and our ecosystem for bringing us an amazing 2021, and looking forward to building the infrastructure for Web3 in the new year.