According to Coinbase’s chief product officer, there will be additional advancements in layer-one to layer-two bridges and rollup technologies in the future. Cryptocurrency industry insider Surojit Chatterjee is the latest to make predictions for the crypto sector in 2022. Surojit Chatterjee predicts that Ethereum scaling improvements will make significant strides in the coming years. This would result in a bright future for Ethereum.
Coinbase CEO Subrata Chatterjee is confident that Ethereum will be at the forefront of Web3 and the crypto-economy as it scales. Industry leaders, analysts, and investors have been sharing their predictions for the crypto ecosystem in 2022. Many of them have various opinions regarding the market. Meanwhile, Chatterjee believes that Ethereum will be at the forefront of Web3.
A blog post published on Tuesday by the company’s chief product officer (CPO) detailed his forecasts. The forecast included the fact that while Ethereum’s scalability will increase, alternative layer-one networks will gain traction. Eth increase scalability will greatly add value to Ethereum
Furthermore, he believes in the positive improvements in Eth scalability with the emergence of Eth2 and many L2 rollups. These improvements are beneficial to the future of Eth.
He went on to say that additional layer-one networks, which would be centered on gaming and social media, will arise as well. Chatterjee expects that breakthroughs in layer-one-to-layer-two bridges will significantly increase scalability. Furthermore, he believes the industry would “desperately pursue improvements in the speed and usability of cross-L1 and L1-L2 bridges.”
Using these bridges, tokens are transferrable from a layer-one network, such as Ethereum, to a layer-two network, such as Arbitrum, and vice-versa.
Ethereum scaling improvements results to more efficient processing.
Speaking particularly on zk-Rollups when discussing scaling technologies; the CPO stated that the new technology is likely to “draw both investor and user attention. Zero-Knowledge scaling results to transaction data “rolled up” in batches. This is for more efficient processing on Ethereum’s layer one.
Firms such as Matter Labs, with the development and implementation of its rollup-based zkSync layer-two platform in 2021. They have made significant strides in their respective fields. These significant strides will guide them to a more secure future.
A jump in usage across all major platforms in 2021 will result in expected significant growth in the layer-two ecosystem. Following layer-two ecosystems, according to L2beat, the total value locked increased by about 11,000 percent in the last year. This is from approximately $50 million in January 2021 to $5.5 billion by the end of that year.
In addition, Chatterjee projected that more privacy-focused applications will emerge in the future. As a result, this would draw the attention of regulators. More regulations such as Know Your Customer and Anti-Money Laundering regulations will be applied in the financial industry. We’ll see new privacy-centric use cases emerge, including privacy-safe applications, and gaming models that have privacy built into the core
Also, the emergence of more decentralized finance (DeFi) insurance. Increased brand involvement in metaverses and nonfungible currencies. Web2 corporations trying to get into Web3 are some of the other forecasts he mentioned, as well as more regulation industry-wide.