Coinbase Chief Of Product Predicts Major Advances For Ethereum In 2022
January 14 2022 - 4:00PM
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Ethereum is one of the prominent blockchains in the crypto industry
that established smart contract technology. This helped consolidate
decentralized finance and checkmate third-party interference in
cryptocurrency transactions. But in the past, its main challenge
and setback were linked to scalability and speed in executing
transactions. As the months and years roll by, Ethereum is making
tremendous progress in tackling scalability issues. This led to the
rolling out of the layer-two version of the blockchain. Related
article | Is Norton 360 Mining Ethereum In Your Computer? If
It Is, They’ll Take a 15% Cut With the new year’s kick-off, many
individuals have shared their predictions and expectations for the
crypto industry in 2022. Some of these individuals include
investors, analysts, and industry leaders. Among the several
comments comes the latest publish from Surojit Chatterjee, the
Chief Product Officer of Coinbase. Chatterjee predicts major
advances for the scalability of Ethereum. Sharing his predictions
on Tuesday through a company blog post, the CPO expressed his
confidence in Ethereum. He mentioned that the blockchain’s
scalability would push it ahead of Web3 and the crypto economy.
Furthermore, he was confident that there would be an improvement in
Ethereum’s scalability. Also, he stated possible traction for
alternative layer-one networks. Further in his post, the CPO
commented on the emergence of newer layer-one networks based on
social media and gaming. He explained that advancing from layer-one
to layer-two bridges will propel a vast improvement for
scalability. Moreover, he anticipated a situation where the
industry has a desperate search for advancement in speed and the
utility of cross-L1 and L1-L2 bridges. Benefits Of Cross-Bridges
For Ethereum Scalability Using these bridges will facilitate the
easy transfer of tokens from a layer-one (L1) network like Ethereum
to a layer-two (L2) network like Arbitrum. Also, it enables reverse
transactions between the bridges. For companies like Matter Labs,
2021 saw its tremendous advancement. The firm developed and
deployed its layer-two platform based on zkSync rollup to achieve
its great feat. Generally, 2021 was a year of massive expansion for
the layer-two ecosystem as all the major platforms have a surge in
adoption. The tracker for layer-two ecosystems, L2beat, reports
almost an 11,000% increase in total value locked for the past year.
This brought the value by 2021 to $5.5 billion against $50 million
by January 2021. Concerning scaling technologies, Chatterjee picked
out zk-Rollups as he mentioned their attractive capacity for users
and investors. He explained that the scalability of Zero-knowledge
compiles transactions data in batches. This will enable efficiency
in their processing on L1 of Ethereum. Furthermore, Coinbase CPO
foresees the emerging of more privacy-focused applications.
However, he mentioned that it would lead to more attention from the
regulatory bodies since there are enforced restrictions through KYC
and Anti-Money Laundering (AML). Related article | More Green
Energy: Crypto Mining Saves A Hydro Power Plant In Costa Rica
Chatterjee has other predictions, including increased industry
regulations, more DeFi insurance, and more institutional
involvement in DeFi. Others are shifts to Web3 by Web2 companies,
more brand participation in metaverses, and non-fungible tokens
(NFTs). Featured image from Pexels, Charts from TradingView.com
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