With its market capitalization of $477 billion, Ethereum is one of the largest blockchains in the cryptocurrency industry. The smart contracts, for example, are high on the list of blockchain achievements. This technology has helped consolidate decentralized finance and defeat third-party interference in cryptocurrency transactions. If in the past Ethereum’s challenges were related to scalability and transaction execution speed, they are of a completely different order in 2022. However, the Coinbase product manager remains very optimistic.
New year, new perspectives
Earlier this year, several people shared their predictions and expectations for the cryptocurrency industry in 2022. These people include analysts, investors, and industry leaders. Surojit Chatterjee, Coinbase’s product manager, also took part in this exercise.
Chatterjee predicts that the scalability of Ethereum will see major advances. It was in a blog post from his company that the CPO expressed his confidence in this blockchain. He also mentioned that the latter would evolve to the point of overtaking Web3 and the cryptoeconomy.
With obvious optimism, the CPO spoke out about the emergence of new Tier 1 networks based on social networks and games. According to him, when bridges move from Layer 1 to Layer 2, a huge improvement in scalability will follow. He also spoke of his apprehensions: at one point, the industry will be desperate to improve the speed and the usefulness of L1 and L1-L2 cross-bridges.
The Benefits of Cross-Bridges for Ethereum Scalability
Cross-bridges will play a decisive role in how the Ethereum blockchain evolves. Their use will notably facilitate the transfer of tokens from a level 1 (L1) network like Ethereum to another level 2 (L2) like Arbitrum. It will also allow for reverse transactions between the bridges.
In 2021, the ecosystem layer two has been massively adopted on major platforms. The layer 2 ecosystem tracker, L2beat, notably reports a nearly 11,000% increase in total value blocked for the past year. It has increased from 50 million in January 2021 to 5.5 billion dollars in 2021.
Ethereum will obviously take advantage of this revival to optimize its performance and improve transactions with other networks. This is a challenge that blockchain can meet.
The Coinbase CPO believes that several privacy-focused applications will be born in the future, probably in 2022, thanks to Ethereum. Is this a good thing? Partly not, as regulators could impose more restrictions through KYC and anti-money laundering (AML). We’ll see what this year has in store for us!
Source: Newsbtc
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Luc Jose Adjinacou
Far from having dampened my enthusiasm, an unsuccessful investment in 2017 on a few cryptos only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.
