A Coinbase executive has said that significant Ethereum scalability improvements are imminent
Coinbase’s Chief Product Officer anticipates more advancements in layer 1 to layer 2 bridges and rollup technology.
Surojit Chatterjee, Chief Product Officer at Coinbase, is the latest to post his forecasts for the cryptocurrency sector in 2022, and he anticipates significant advancements in Ethereum scalability.
Industry experts, analysts, and investors have shared their predictions for the crypto ecosystem in 2022, and Surojit Chatterjee of Coinbase is convinced that Ethereum will be at the vanguard of Web3 and the crypto-economy as it grows.
On Jan. 4, the CPO offered his forecasts in a corporate blog post, stating that although Ethereum’s scalability would increase, other layer 1 networks will gain popularity as well.
“I am enthusiastic about Eth’s scalability improving as a result of the introduction of Eth2 and several L2 rollups.” Additionally, he continued, emerging layer 1 networks centred on gaming and social media would arise. Chatterjee expects that breakthroughs in layer 1 to layer 2 bridges would significantly increase scalability, adding that the industry will “desperately seek improvements in the speed and usability of cross-L1 and L1-L2 bridges.”
These bridges facilitate the transfer of tokens between layer 1 networks like as Ethereum and layer 2 networks such as Arbitrum, and vice versa.
The CPO particularly addressed ZK-rollups while discussing scaling solutions, adding that they would “draw both investor and user interest.” Scaling on the basis of zero-knowledge “rolls up” transaction data in batches for more efficient processing on Ethereum’s layer 1.
In 2021, companies like as Matter Labs made significant strides with the development and implementation of their rollup-based zkSync layer 2 technology.
In 2021, the layer 2 ecosystem had a huge growth, with a rise in acceptance across all major platforms. According to L2beat, which measures the L2 ecosystem, the total value locked has increased about 11,000 percent over the last year, from roughly $50 million in January 2021 to $5.5 billion by year’s end.
Chatterjee predicted that more privacy-focused applications would emerge, but that this would draw increased regulatory scrutiny as more KYC/AML (know your customer/anti-money laundering) requirements are implemented.
“We’ll witness the emergence of new privacy-centric use cases, such as privacy-safe apps and game models with privacy built in.”
Additionally, he predicted increased industry-wide regulation, increased institutional investment in DeFi, the appearance of additional DeFi insurance, increased brand engagement in Metaverse and NFTs, and Web2 corporations hurrying to enter Web3.