Coinbase Chief Product Officer Surojit Chatterjee is the most recent to publish his predictions for the crypto {industry} in 2022 and he foresees major advances within the scaling of Ethereum.
Industry leaders, analysts, and traders are sharing their 2022 predictions for the crypto ecosystem, and Coinbase’s Surojit Chatterjee is assured that Ethereum will probably be on the forefront of Web3 and the crypto-economy because it scales.
The CPO shared his predictions in an organization weblog submit on Jan. 4 through which he acknowledged that Ethereum scalability will enhance however different layer 1 networks will even see traction.
“I am optimistic about improvements in Eth scalability with the emergence of Eth2 and many L2 rollups.”
He added that newer layer 1 networks targeted on gaming and social media will even emerge. Chatterjee predicts that scalability will probably be vastly improved by advances in layer 1 to layer 2 bridges, including that the {industry} will “desperately seek improvements in speed and usability of cross-L1 and L1-L2 bridges.”
These bridges allow tokens to be moved from a layer 1 community comparable to Ethereum to a layer 2 community comparable to Arbitrum and vice versa.
Referring to scaling applied sciences, the CPO particularly talked about ZK-rollups stating that they are going to “attract both investor and user attention.” Zero-Knowledge scaling “rolls up” transactions information in batches for extra environment friendly processing on Ethereum’s layer 1.
Firms comparable to Matter Labs have superior 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 growth in 2021 with a surge in adoption for all major platforms. According to L2beat, which tracks the L2 ecosystem, the full worth locked surged by almost 11,000% over the previous yr from round $50 million in January 2021 to $5.5 billion by the top of the yr.
Related: Even with Ethereum 2.0 underway, L2 scaling continues to be key to DeFi’s future
Chatterjee predicted that there will probably be extra privacy-focused functions rising however this might appeal to extra regulatory consideration as extra KYC/AML (know your buyer/anti-money laundering) restrictions are enforced.
“We’ll see new privacy-centric use cases emerge, including privacy-safe applications, and gaming models that have privacy built into the core.”
Other predictions he made embody extra regulation industry-wide, bigger institutional participation in DeFi, the emergence of extra DeFi insurance coverage, higher model involvement in Metaverse and NFTs, and Web2 firms scrambling to get into Web3.