Coinbase’s Surojit Chatterjee names his top ten prediction for 2022 ranging from Web3 to the Metaverse
Exciting Year Ahead
Coinbase’s Chief Product Officer (CPO), Surojit Chatterjee shares his views and predictions for the crypto market in 2022 with some interesting insights. In his prediction for 2022, Ethereum’s reign as the top layer-1 solution was discussed. He believes that scalability on the Ethereum network will improve with the migration to Eth 2.0 and layer-2 rollups.
The future will be multi-chain with significant improvements in L1-L2 bridges. New layer-1 networks will emerge but will focus on specific use cases. This observation probably stems from the industry specific needs. Scalability and transaction costs may be the primary focus for the gaming industry, therefore, security is secondary. Decentralized Finance (DeFi) protocols on the other hand will prioritize security and transaction costs over scalability.
One particular rollup received special attention. In Chatterjee’s prediction, Zero Knowledge Proof technology was singled out. He believes that this technology will attract both investors and users as layer-1 remains clogged. There will be more privacy-centric use cases and this will pose a new challenge to regulators because of Know-Your-Customer (KYC) and Anti Money Laundering (AML) protocols.
Industry leaders acknowledge that regulation will have a permanent stay in the crypto market. DeFi is a segment of the crypto market that will be drawing the regulators’ attention. On-chain KYC attestation will be pivotal in connecting the users’ real identity to the interacting wallet.
The US Securities and Exchange Commission’s Chairman, Gary Gensler has hinted at incoming DeFi regulation. Financial products and services in the legacy system are heavily regulated. The same set of regulations will likely be mirrored in the crypto space on DeFi protocols with some minor tweaks.
With regulation, institutions will play a bigger role. This is partly because DeFi returns better yields than traditional finance. Compliant DeFi platforms will fall back on DeFi insurance to secure users’ funds as part of their standard security protocol.
NFT’s Role in the Metaverse
Chatterjee also predicts NFT based communities as the future of social media. User created metaverses will take over centralized social media. NFT branding coupled with the metaverse will spark a new marketing revolution. Celebrities will also jump into the bandwagon to improve on their personal branding.
Facebook realized that there is a shift in technology and decided to rebrand itself as a web3 company. This move will likely be followed by many other big web2 companies. But these companies would likely create their own centralized and closed network versions of the metaverse.
Decentralized Autonomous Organisation (DAO) is a natural progression from crypto assets as currency to a fully decentralized ecosystem. DAO will change how organizations interact with its community. Mr. Chatterjee believes that the definition of employment will change, whereby tokens will be given instead of fixed salaries.
This will pose a major challenge to regulators as they try to figure out how to find the ‘directing mind and will’ of the organisation for accountability. DAO will continue to evolve and execute with better efficiency.
There is no doubt that the future is taking shape now and the only safe conclusion to draw is that crypto is here to stay.
Source : bsc.news
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