Predicting Ethereum 2.0 Scalability Breakthroughs - Surojit Chatterjee.

Predicting Ethereum 2.0 Scalability Breakthroughs - Surojit Chatterjee.

2022-01-05 | Daniel Smith

Predicting Ethereum 2.0 Scalability Breakthroughs - Surojit Chatterjee.

Surojit Chatterjee, chief product officer at Coinbase, is the newest to post his forecasts for the cryptocurrency ecosystem in 2022, and he predicts significant breakthroughs in Ethereum scalability.

Industry experts, analysts, and financiers have already been expressing their forecasts for the cryptocurrency environment in 2022, and Coinbase's Chatterjee believes Ethereum will be at the vanguard of Web3 and the cryptocurrency sector as it grows.

On Tuesday, the CPO offered his forecasts in a business blog article, stating that while Ethereum's scaling will increase, other layer-one networks will also gain popularity.

He also stated that additional layer-one networks centred on gaming and social media will develop. Chatterjee expects that breakthroughs in layer-one-to-layer-two bridges would substantially increase scalability, noting that the market will "frantically pursue enhancements in pace and usage of cross-L1 and L1-L2 bridges."

Tokens may be transported from a layer-one network, including Ethereum, to a layer-two network, like Arbitrum, via these bridges.

The CPO particularly addressed zk-Rollups while discussing scaling technologies, adding that they might "draw simultaneously investor and user interest." Zero-Knowledge scalability "rolls up" transactional information in chunks for a more effective layer one execution on Ethereum.

Matter Labs, for example, has made great strides in 2021 with the building and implementation of its rollup-based zkSync layer-two platform.

In 2021, the layer-two environment saw enormous growth, with all significant platforms experiencing a boom in popularity.

As per L2beat, which measures layer-two environments, the overall sum secured has increased by approximately 11,000% in the last year, rising from roughly $50 million in January 2021 to $5.5 billion by the conclusion of the year.

Chatterjee expected that more privacy-focused products would emerge, but that this would draw greater legal scrutiny as much more Know Your Customer and Anti-Money Laundering regulations are implemented.

Other forecasts he made included further regulatory oversight, increased institutional engagement in decentralized finance (DeFi), the introduction of further DeFi insurance, increased brand engagement in metaverses and nonfungible currencies, and Web2 corporations hurrying to enter Web3.

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