Coinbase Chief Of Product Predicts Major Advances For Ethereum In 2022

Ethereum is one of the prominent blockchains in the crypto industry that founded smart contract technology. This helped standardize decentralized finance and third-party interference in cryptocurrency transactions. But in the past, the main challenge and reversal was related to scalability and speed in executing transactions.

As the months and years go by, Ethereum is making tremendous progress in addressing scalability issues. This led to the introduction of a Layer 2 version of the blockchain.

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With the start of the new year, many individuals have shared their predictions and predictions for the cryptocurrency industry in 2022. Some of these individuals include investors, analysts, and industry leaders. Among the many comments comes the latest release from Sorojit Chatterjee, Coinbase’s chief product officer.

Chatterjee anticipates significant developments in Ethereum’s scalability. Sharing his predictions on Tuesday through a company blog post, the CPO expressed his confidence in Ethereum. He stated that the scalability of the blockchain will push it forward on the Web3 and cryptocurrency economy.

Ethereum is struggling to rise again | Source: ETHUSD on TradingView.com

Moreover, he was confident that there would be an improvement in the scalability of Ethereum. He also mentioned the attractiveness of alternative first layer networks.

Furthermore in his post, the CPO commented on the emergence of new first tier networks based on social media and gaming. He explained that the progression from Class 1 bridges to Class 2 bridges would drive a significant improvement in scalability. Furthermore, anticipate a situation where the industry is desperately looking for advances in speed and utility of L1 and L1-L2 cross bridges.

Cross-Bridges Benefits for Ethereum Scalability

Using these bridges will facilitate the easy transfer of tokens from a Layer 1 network (L1) such as Ethereum to a Layer 2 network (L2) such as Arbitrum. It also enables inverse transactions between bridges.

For companies like Matter Labs, 2021 has seen tremendous progress. The company has developed and deployed its second layer platform based on zkSync rollup to its great feat.

Overall, 2021 has been a year of massive expansion for the Layer 2 ecosystem as all major platforms have increased adoption. The Layer 2 ecosystem tracker, L2beat, has reported a nearly 11,000% increase in total locked value over the past year. The value will thus rise by 2021 to $5.5 billion from $50 million by January 2021.

Regarding scaling techniques, Chatterjee chose zk-Rollups as it mentioned its attractive ability to users and investors. He explained that zero-knowledge scalability collects transaction data in batches. This will enable efficiency to be processed on L1 of Ethereum.

Moreover, Coinbase CPO expects more privacy-focused apps to emerge. However, he noted that this will lead to more interest from regulators due to restrictions imposed by KYC and Anti-Money Laundering (AML).

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Chatterjee has other predictions, including increased industry regulations, more DeFi insurance, and more institutional involvement in DeFi. Others are transitions to Web3 by Web2 companies, more brand involvement in metaverses, and non-fungible tokens (NFTs).

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