By Alicia Maher
Coinbase executive Surojit Chatterjee, has joined the wagon of experts and analysts in predicting the future of the crypto sector in 2022. According to the Chief Product Officer, a major upgrade will occur in Ethereum’s Layer1 and Layer2 scaling solutions.
Chatterjee is optimistic that Ethereum will play a crucial role in Web3 and the scaling of the general crypto ecosystem. He added that the emergence of ETH 2.0 and several rollup techs will ultimately improve scaling in the new year.
CPO Sees Improvements In L1 – L2 Bridges
While admitting that there will be more roll ups this year, Chatterjee also predicted the emergence of Layer 1 networks that will focus on gaming and social media, but that will be the case if there’s significant improvements in speed and usability.
In 2021, the major complaints from users were that speed was somewhat slow, as was scalability. This hindered the execution of transactions and the deployment of DApps. As a result, the crypto industry called for the improvements of speed and scalability, which Chatterjee sees happening in 2022.
The CPO also discussed Layer – Layer2 bridges. In his statement, he said he also sees improvement in scalability. Bridges allow the transfer of tokens from Ethereum to Layer2 networks, such as Polygon and others. These improvements will enable users to make on-the-spot transactions.
Scaling techs, such as ZK-rollups will be widely used in 2022 and receive more attention from investors as well, according to the CPO. This rollup, which facilitates data processing in Layer1 contributed largely to the success of Matter Labs in 2021.
Last year, the Layer2 protocol witnessed gargantuan expansion, with massive adoption. The TVL in the ecosystem rose from $50M to $5.5B across twelve months, representing an almost 11,000% surge. This shows how massively adopted Layer2 was.
More KYC Regulations Envisioned
2021 saw several regulators enforce KYC and AML regulations in the industry to check money laundering and other illegal activities perpetrated by dubious dealers. Russia, Singapore, and South Korea were some of the countries that enforced these regulations. This led to the massive exodus of crypto firms and exchanges.
Chatterjee predicts that this will continue in 2022, especially with the emergence of more privacy-centered applications and games. He’s anticipating that more countries and regional bodies will sign these rules into law.
Chatterjee made other predictions as well. According to him, more institutions will venture into the DeFi world and DeFi insurance will be launched. There will also be more brands that will launch in the metaverse and companies in Web2 will try to enter Web3. 2021 saw some major players in the apparel business, such as Nike and Adidas enter the virtual universe.