Coinbase Outlook 2022, also available

2021 is an important year for cryptocurrencies. The value of BTC has increased by almost 70% over the past year, and DeFi's stable value has reached $ 150 billion. NFTs have become new categories. Here are my thoughts and business plans for 2022.

Ethereum's scalability will increase, but there will also be significant growth of the new L1 chain. As we invite the next billion users to use encryption and Web3, Ethereum's scalability issues may also increase. With the advent of Ethereum 2.0 and other L2 rollups, we are excited about Ethereum's scalability improvements. The development of L1 channels like Solana and Avalanche shows that we will be in many global channels in the future. We will also see the emergence of new L1 channels focused on specific applications such as sports or the media.

The availability of L1-L2 bridges has improved considerably.—— With the improvement of the L1 network and the expansion of the L2 scale, people will quickly seek to improve the speed and usability of the L1 and L1-L2 bridges. Next year will see some expansion of the bridge in service.

ZK machine can get more and more colors.—— In 2021, systems like ZkSync and Starknet started to gain attention. As the use of L1 chain rises and blocks, ZK-Rollup technology will attract more customers and consumers. We will see the emergence of new privacy apps, including privacy apps and privacy-centric game models. It could also lead to the enjoyment of greater control over crypto, as KYC / AML could be a real challenge for privacy-centric networks.

Regulated DeFi authentication and on-chain KYC- Multiple DeFi contracts are monitored and created separately by KYC users. Custom and decentralized on-chain KYC authentication services play an important role in connecting the real user to the DeFi wallet. Several addresses that accept the ENS format will appear and a new name resolution process will appear.

Schools will play a bigger role in DeFi—— Organizations want to know more about DeFi. First, financial companies benefit more from returns than existing financial products. In addition, the cost savings achieved through the use of DeFi to provide financial services present exciting opportunities for businesses. But they still refuse to join DeFi. Schools should be able to identify that they are only interacting with experts who have completed the KYC process. The development of DeFi management and the KYC certification chain will help institutions build confidence in DeFi.

DeFi insurance appears—— DeFi's development also makes it a target for security hackers. According to London-based Elliptic, the total damage from the DeFi disaster in 2021 will exceed $ 10 billion. To protect users from hacker attacks, a security agreement will be put in place in 2022 to protect users from security breaches.

NFT-based communities will be in significant competition with the Web 2.0 social network.——NFT will continue to increase people's awareness of them. We will see more first class tokens from designers or fans. The next change to NFT will be the user's numeric number and meta-world pass. Users will congregate into smaller and more diverse communities based on the NFT mode. Users creating a meta-world will be the future of communication and will begin to threaten today's media-driven social media.

The product has started participating in the Meta Universe and the NFTs.—— Many brands recognize that NFTs are essential to business success and retention. Coca-Cola, Campbell and Chamin have launched their 2021 NFT collection. Adidas recently announced a new meta-edge venture in partnership with the Bored Ape Yacht Club. I think we can see a lot of product development using NFT. NFT and Yuan World will be the next generation of Android. We will also see many celebrities joining these models and using NFTs to improve their personal profile.

Web2 gets up and tries to access Web3.- We see Facebook trying to reestablish itself as a Web3 business. In 2022 we will see another large Web2 company move to Web3 and meta edge. However, many of them can create intermediate and closed models of a metaglobal network.

The time for DAO 2.0 has arrived—— We will see DAOs become more mature and important. More and more people will join DAOs, which will support job exchanges. DeFi does not accept acknowledgments, exchanges receive tokens from a fixed payment and work on multiple DAO operations at the same time. DAOs will also face new challenges such as integration and procurement, revenue and profit management, and participation in increasingly large organizations. We will see the impact of various tools to help DAOs work better. Many DAOs can also figure out how to interact with Web2 companies. We'll see that admins are happy with DAOs and are trying to figure out how DAOs work.